Model N Expands Global Price Management Suite and Offers Launch Sequence Optimization Solution

Empowers users to create winning product launches using analytics and custom scenario planning REDWOOD CITY, CA – June 18, 2014 – Model N, Inc. (NYSE: MODN), the leading revenue management [...]

Empowers users to create winning product launches using analytics and custom scenario planning

REDWOOD CITY, CA – June 18, 2014 – Model N, Inc. (NYSE: MODN), the leading revenue management provider to the life sciences and technology industries, today announced the early release of the Model N LSO (Launch Sequence Optimization) solution, designed to help companies determine their optimal launch price and geographical sequence for launching new products. The LSO offering is available immediately and is being built into Model N’s Global Price Management software suite.

New product launches are the most critical and defining moments in a pharmaceutical product lifecycle. The first six months of launch establishes the product revenue trajectory for the next several years. A suboptimal launch price or sequence often results in leaving millions of dollars on the table. A recent study by Bain & Company shows that early launches in a low-price market could result in lower revenue potential worldwide.

With increasing pressure from the payers and the stringent application of international referencing pricing, identifying the best launch strategy is more complex than ever. However, many organizations have not yet adjusted their launch approach to the new reality and tend to rely on “rule-of-thumb” approaches rather than analytics and scenario planning

At a recent Model N webinar with Gilead (www.gilead.com), on Global Price Management, it was stated that “Global Launch Price Sequencing is critical; it is vital that companies start thinking about launch sequence at the same time they decide on a licensing cascade. If the launch sequencing and regulatory strategy are out of sync, it becomes an impossible piece to deal with. Therefore, starting the global launch price planning early in the development cycle, gives the best chance to achieve all the goals of the medicine, as well as the pricing goal.”

Ramona Schmid, Head of Pricing and Reimbursement at HRA Pharma commented: “For an international company like HRA Pharma that is currently expanding through the launch of new or in-licensed products, it is absolutely crucial to take a close look at when to launch in each country and at which price, in a way that mitigates the potentially devastating effects of international price referencing on these products’ lifetime revenues. Much more, we must consider several possible scenarios and must stand ready to alter the course of the launch if we identify new risks or new opportunities.”

“Model N LSO enables pharmaceutical companies to execute a revenue-optimized launch strategy that provides the best possible actionable alternatives,” said Zack Rinat, CEO of Model N. “We listened to our customer pain points and designed this offering, as a value add extension of our Global Price Management Suite. LSO will help pharmaceutical customers refine launch timings and prices to maximize their revenues and margins.”

The changing and complex international reference pricing rules, the calendar of referencing schedule and the market authorization dates introduces an unparalleled complexity that impacts revenues and margins. Model N’s LSO was developed with deep industry expertise and reliable data science that abstracts this complexity and with up-to-date regulatory guidelines, recommends the optimal schedule and geographical sequence, as well as launch prices. This solution provides a simplified user experience and empowers users to get reliable answers to complex what-if questions via different launch scenarios and to analyze the results with other internal stakeholders.

For more information on this solution please visit – Model N Global Price Management

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About Model N

Model N is the leader in Revenue Management solutions. Model N helps its customers maximize their revenue and reduce revenue compliance risk by managing every dollar that impacts their top line encompassing contracting, pricing, incentives, and rebates. Model N leverages its deep industry expertise to support the unique business needs of Life Sciences and Technology companies in more than 50 countries. Global Customers include: Actavis, Allergan, Atmel, Bristol-Myers Squibb, Dell, Johnson & Johnson, Linear Technology, Merck, Marvell, Maxim, Micron, Nokia, Novartis, Novo Nordisk, ON Semiconductor, and STMicroelectronics. Learn more at: modeln.com. Model N is traded on the New York Stock Exchange under the symbol MODN.

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Model N® is the registered trademark of Model N, Inc. Any other company names mentioned are the property of their respective owners and are mentioned for identification purposes only.

Model N Launches Release of Global Price Management Solution for Pharmaceutical Companies

Empowers users to create winning product launches using analytics and custom scenario planning REDWOOD SHORES, CA – 12 June, 2014 – Model N, Inc. (NYSE: MODN) the leading revenue management [...]

Empowers users to create winning product launches using analytics and custom scenario planning

REDWOOD SHORES, CA – 12 June, 2014 – Model N, Inc. (NYSE: MODN) the leading revenue management provider to the life sciences and technology industries announced today the launch of Spring ’14 release of its market-leading Global Price Management (GPM) solution. This release brings significant enhancements that will give pharmaceutical companies control and governance in the execution of pricing policies to achieve optimum price and margins throughout the product lifecycle.

Pricing strategies for patented drugs differ significantly from country to country. External reference pricing, or international price comparison, is the common instrument to control prices of pharmaceuticals. Often the algorithms used to derive reference prices vary among countries and details of the algorithms used remain unclear.

Price erosion, missed opportunities and often millions of dollars left on the table are the outcomes of failing to systematically design prices and understand the impact price changes have in a global context.

Global alignment, global price governance, cross-border collaboration and wider user adoption are critical to address price erosion, lost revenue and margins. Complex dependencies require an easy to use software-as-a-service (SaaS) solution that provides high visibility, governance and user adoption.

The Spring ’14 release of Global Price Management (GPM) solution includes best price approval and governance mechanisms and is built on the Force.com platform.

The latest features are designed to drive better:

  • Visibility – Global pharmaceutical pricing managers are now empowered with insight & analytics that improve cross-country information sharing and collaboration. The new dashboard provides alerts, price approval information, and recent price changes in the market, in addition to quick links and reporting.
  • Governance – tighter governance of the pricing process is now available within Model N’s GPM solution with ability to customize user access, approval mechanisms and auditing capabilities. This helps customers increase transparency of their pricing process, reduce maverick pricing decisions and ensure auditability.
  • Adoption – User adoption is at the heart of this release. Enhanced usability and a streamlined interface remove complexity making the software easier and faster to use. Individuals can now send price requests in bulk for a group of products with different price types, saving time and reducing potential errors.

Ali Tore, VP of Strategic Markets, added: “Empowering global teams to maximize a product’s margin over time is our primary goal. Because Global Price Management (GPM) follows real-life processes it boosts user adoption, giving companies a real alternative to the shortcomings of home grown solutions.”

Global Price Management (GPM) is a SaaS product available as part of the GPM Foundation and includes the International Reference Pricing module.

Additional Resources
About Model N

Model N is the leader in Revenue Management solutions. Model N helps its customers maximize their revenue and reduce revenue compliance risk by managing every dollar that impacts their top line encompassing contracting, pricing, incentives, and rebates. Model N leverages its deep industry expertise to support the unique business needs of Life Sciences and Technology companies in more than 50 countries. Global Customers include: Actavis, Allergan, Atmel, Bristol-Myers Squibb, Dell, Johnson & Johnson, Linear Technology, Merck, Marvell, Maxim, Micron, Nokia, Novartis, Novo Nordisk, ON Semiconductor, and STMicroelectronics. Learn more at: modeln.com. Model N is traded on the New York Stock Exchange under the symbol MODN.

Legal

Model N® is the registered trademark of Model N, Inc. Any other company names mentioned are the property of their respective owners and are mentioned for identification purposes only.