Case study 2 Global pricing and uptake study for medical technology offering

Using linked-choice models to establish future global demand and inform pricing strategy.

Understanding the factors behind future success

In a second example, our client was looking to conduct pricing and uptake research for a diabetes medical device in a large number of global markets – some of which would be purely patient self-pay.

The offering contained a durable device and disposable components, both of which had to be priced. A variety of product attributes could occur related to price, physician recommendation, distribution channel and other factors.

In this case, choice models could be conceptually linked by including the output of the HCP model as a design variable in the patient model. The presence of these ‘linkage variables’ enabled us to integrate the outputs of the two models, providing a more accurate analysis.

"Some patients would have to
pay for the
diabetes device"

Exploring stakeholder perceptions and barriers

To begin with, we showed patients a variety of potential scenarios involving the pricing of the device and its disposable components, as well as manufacturer and physician opinions of the device. We also showed physicians the different products and asked their opinions of each for the various patients they manage – in terms of their likelihood to recommend and actively prescribe.

Building a detailed, evidence-based picture

We used a conjoint-based simulator to provide output for various product offerings. This allowed our client to determine the uptake and optimal pricing by individual country, including both patient and physician input. Optimal pricing was calculated by combining values for the device with those of the disposable components patients would regularly need.

The importance of knowing the key driver of product uptake

When examining a linked choice, it’s important to decide which source is primarily driving demand. For example, will physician prescribing decisions be the primary driver – with the secondary driver being patients’ likelihood to request – or vice versa?

In most cases, physicians are primary and their estimates are modified by patient acceptance. But, as we have seen, some cases are expected to be driven more by patient preference, with physician opinions influencing patient action. For example, in situations where a product will have a high out-of-pocket cost for patients, we assume patients will make the ultimate decision.