Launch Price Setting for a Novel Medical Device

A medtech company engaged L.E.K. to determine the optimal launch price for its novel technology in the U.S.

We performed an array of market analysis to support the client’s goal, and:

Characterized the market context, including the patient population that the novel technology will treat, the standard of care/treatment paradigm, cost burden and reimbursement context for treatments in the disease category more broadly
Gathered robust feedback on the novel technology, leveraging a targeted product profile from payers, clinicians (both referrers and proceduralists) and administrators
Estimated the costs displaced (e.g., reduced hospitalizations) and incremental value created for payers and hospitals as a result of using the new technology
Leveraged a Gabor Granger methodology to quantify expected adoption at various price points; further, characterized margins hospitals are willing to accept on the procedure
Benchmarked potential price ranges relative to analogues
Evaluated trade-offs of optimal price point and adoption by estimating size of the prize

L.E.K.’s work helped the client set the optimal price for its new technology upon launch.