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

June 18, 2014

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 (, 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: Model N is traded on the New York Stock Exchange under the symbol MODN.


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.

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