Pricing and reimbursement

Pricing and reimbursement refers to the processes by which a pharmaceutical product is assigned a price and granted coverage or funding by healthcare payers.

What is pricing and reimbursement?

Pricing and reimbursement (P&R) is the set of regulatory, economic, and strategic processes that determine how much a pharmaceutical product will cost and whether it will be covered or reimbursed by healthcare payers. This includes negotiations with public or private payers, health technology assessments (HTAs), budget impact analyses, and value-based pricing strategies. P&R decisions are often influenced by clinical evidence, cost-effectiveness, unmet need, and the broader healthcare and policy context.

Why is pricing and reimbursement important in pharmaceutical strategy?

P&R directly impacts a product’s market access, uptake, and commercial success. A favorable price and reimbursement decision can accelerate launch and broaden patient access, while unfavorable outcomes can restrict availability and limit return on investment. Pharmaceutical companies must align clinical and economic evidence to justify pricing and secure coverage. Understanding local payer requirements and planning early for value demonstration are essential to navigating global P&R environments effectively.

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