• Article

Pricing Medicines: Theory and Practice, Challenges and Opportunities

The pricing of medicines has become one of the most hotly debated topics of recent times, with the pharmaceutical industry seemingly being attacked from all quarters. From a company perspective, determining the price for each new product is more crucial than ever, given the present dearth of new drug introductions. But how are pricing strategies developed in practice? What is value-based pricing and how are financial models of return on investment constructed? What are the challenges faced in setting the price for a particular product, and how will scientific and environmental trends provide future pricing challenges or opportunities?


Gregson, NN., Sparrowhawk, KK., Mauskopf, J., & Paul, J. (2005). Pricing Medicines: Theory and Practice, Challenges and Opportunities. Nature Reviews Drug Discovery, 4, 121-130.