What is market value?
Market value is the actual or estimated financial value of a pharmaceutical product or therapeutic segment within a specific market or geography. It reflects real-world data on product uptake, pricing, reimbursement, and sales, often segmented by indication, region, or line of therapy. Unlike market potential, which estimates the theoretical opportunity, market value represents how much of that opportunity is currently being realized or is expected to be realized based on market conditions.
Why is market value important in pharmaceutical strategy?
Market value provides a realistic benchmark for assessing commercial performance and identifying growth opportunities. It is used to evaluate product positioning, competitor success, pricing strategies, and access dynamics. For business development, licensing, and investment decisions, understanding market value helps quantify return on investment and informs strategic prioritization. Accurate assessment of market value also supports internal forecasting, resource allocation, and long-term portfolio planning.