Major Pharmaceutical Companies Can Reduce Margin Erosion by Almost 40 percent with Deeper Modification and Automation Capabilities
REDWOOD CITY, CA – July 26, 2013 – Model N, Inc. (NYSE: MODN), a leading revenue management solutions provider to the life science and technology industries, today announced the latest version of its International Reference Pricing (IRP) offering. Model N IRP, is an enterprise-grade SaaS solution that helps pharmaceutical and biopharmaceutical companies that sell into multiple countries, maximize pharmaceutical prices, and reduce margin erosion. The latest version provides users with an enhanced user experience, improved data verification processes, and new simulation modeling capabilities.
“Referencing rules and relationships have become increasingly complex, and austerity measures are increasing governmental focus on improving drug costs. Pharmaceutical customers need a solution that can fully automate and distribute reference pricing management processes,” said Ali Tore, Co-founder and Vice President of Analytics at Model N. “Many of the largest global biopharma manufacturers are our customers. We have a deep understanding of global pharmaceutical pricing and contracting. The latest enhancements to our IRP solution provide an even deeper level of personalization and automation to help our customers tackle this very complex challenge.”
Key product enhancements include:
- Enhanced User Experience
Model N IRP provides quick and visual access to personalized data for each global pricing manager, allowing them to easily view what might impact their country, as well as their reference network of countries. By presenting the data in an easy-to-understand format, users can easily obtain the insights they need to take vital actions.
- Data Verification Processes
New processes guide users to verify the data relevant to them by providing them with the right information at the right time. This process engages all relevant users to prompt them to check their data, ultimately leading to increased user adoption and engagement, and better data quality.
- Simulation Modeling
Simulations can produce predictive analytic insights that help global pricing managers anticipate future pricing changes. Advanced modeling functionality also helps demonstrate how a price change today might impact various countries in the future.
In a recent survey* of global pricing experts representing nearly one-third of the largest pharmaceutical companies, respondents indicated:
- There is significant room for improvement when it comes to operationalizing global pricing processes;
- Global pricing experts are often underequipped when it comes to collaborating and making fast data-driven decisions based on analytics; and
- More than 50 percent plan to invest in new solutions to fix outdated systems that lack automation, ease-of-use and maintainability
Additionally, major global pharmaceutical companies have recently selected Model N to manage their international reference pricing processes. One large biopharma company implemented Model N IRP to manage product launches and pricing changes in more than 60 countries after realizing the pricing teams were using error-prone manual processes that didn’t provide insight into how pricing changes would impact other markets strategically.
Model N IRP has enabled them to reduce pricing erosion by 40 percent in the European Union (from 2.5 percent to 1.5 percent), a multi-million figure impact. The new solution has automated thousands of price changes, enhanced accuracy, and reduced non-compliance.
*Model N 2013 Global Pricing Survey
• Model N IRP Infographic
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.
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.