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Model N offers tools for managing international reference pricing

In many nations with single-payer (government) funding of pharmaceutical purchasing, the practice of “reference pricing” has been commonplace. Government negotiators will gather a basket of pricing patterns among other nations, and use some formula to arrive at a desired price point. Meanwhile, individual country managers of multinational pharma companies, dealing with market dynamics within their territories, have tended to make pricing decisions based on local conditions. The result: a decision made in one country can significantly affect pricing in other countries, without the multinational anticipating such effects.

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