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Cost-minimization analysis to optimize net price strategy for an oncology biologic in KSA

Health Economics

Cost-minimization analysis to optimize net price strategy for an oncology biologic in KSA

Project Scope

Identify the optimal bid corridor for the NUPCO tender in Saudi using a cost-minimization analysis vs. existing standards of care

KSA

KSA

Challenge

The client sought parity pricing to competitors in the market and thus sought to generate evidence around cost-minimization to support their net-pricing strategy for the NUPCO tender in Saudi Arabia

Solution

We developed a comprehensive cost-minimisation model designed to demonstrate cost-savings associated with using the client’s therapy vs. existing standards of care

  • A cost-minimization model was developed comparing the total cost of treatment (administration time, use of IV beds and drug wastage) versus competitors to highlight efficiency gains
  • Detailed local evidence was generated to support data entry

Results

  • We established a data-backed floor and ceiling price, this enabled the client to submit a commercially viable bid that satisfied both financial and technical evaluation criteria
  • The client secured a significant volume allocation in the national tender, establishing a strong foothold in the public sector while maintaining a sustainable regional price corridor