Key blocks of R&P Strategy

1. Define Overall Pricing Goals In Line with Business Objectives–
   1. Profit maximization Vs. Revenue maximization
   2. Short-term revenue generation Vs. Long-term profit growth
   3. Focused-segment Vs. Mass-penetration

2. Reimbursement Coding Analysis–
   1. Current procedures
   2. Device specific codes
   3. Product specific codes
   4. New procedures
   5. New technologies

3. Assessment of Market Landscape- 
   1. Current & potential competitors and comparators,
   2. Market segmentation among current therapy alternatives,
   3. Positioning of competitors and comparators
   4. Estimated costs of current alternatives
   5. Potential price points for your product

4. Assessment of Evidence Landscape- 
   1. Overview of current literature supporting your technology
   2. Cursory review of guidance and guidelines from the market of interest
   3. Cursory review of conclusions from large clinical studies and research papers
   4. Cursory review of most important short term & long term clinical outcomes
   5. Summarize key value messages relevant for in-depth evidence review
   6. Develop protocol for conducting the extensive systematic literature review of evidence

5. Evaluate External Influencing Factors-
   1. Evaluate likely support and concern points regarding adoption/introduction of technology/product
   2. Evaluate system challenges against the relevant case studies from the past
   3. Interview the relevant stakeholders and determine their key decision criteria

6. Pricing & Value Proposition Analysis –
   1. Develop evidence-based value propositions
   2. Analyze gaps and refine propositions based on in-depth analysis with opinion leaders and decision makers
   3. Set your pricing goals based on the value perceptions of your product
   4. Select appropriate pricing methods to determine potential price points.
       Some of these methods are:

      • Cost-plus pricing: Based on production cost plus a certain profit margin
      • Target return pricing: Based on a targeted return-on-investment
      • Psychological pricing: Based on factors such as signals of quality, popular price points
      • Competitor-based pricing: Based on the price of your competitors
      • Value-based pricing: Based on the value to the customer

   5. Evaluate needs of multiple stakeholders and focus on optimizing impact on profits while
       selecting sales channels, such as-

      • Niche-selling vs. volume-selling
      • Strategic bundling of products to lock-in buyers for long-term, e.g. Discounted Bare Metal Stents