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Creating a pricing strategy

Life Science Law > Creating a pricing strategy

Creating a pricing strategy

Helping maximise healthcare budgets for access to pharmaceuticals and other medical therapies.

Decisions on prescribing and medical treatments are based on the needs of the individual patient, yet against a backdrop of tight NHS budgets, pharmaceutical companies can help maximise funds by offering a range of approaches to pricing.

LS Law can help you build lasting relationships with customers by offering legal support to establish a number of different pricing schemes:

Discounts & rebates

We can help you establish a straightforward programme of sliding-scale prices based on product volumes.

Outcome-based schemes

We help devise a scheme where refunds are made if a successful treatment outcome has not been obtained or where payments are delayed until a measurable outcome has been achieved.

Package deals

Where a treatment requires a combination of products and/or testing to assess eligibility, we can support establishing regimes where a discounted service offering is included.

Treatment duration guarantee

Fixed-price guarantees based on a defined treatment duration. If costs are exceeded by treatment beyond a defined timeline, they can then be reimbursed.

Pricing schemes must be carefully assessed on a case-by-case basis. They must ensure market dominance is calculated, prices are above production costs ( where relevant) predatory pricing is averted, and that general competition law principles are considered. This may include reference to the Medicines Act, the Association of the British Pharmaceutical Industry’s code of practice and the Bribery Act.


straight forward volume based sliding scale pricing


refunds where a successful treatment outcome has not been obtained, or payment is not made until a measured outcome has been obtained

Package Deal

Where a treatment therapy requires more than one product, a discounted price is payable for both products

Treatment Duration

a fixed price is payable based on a guaranteed treatment duration, which if exceeded the excess is not charged

The above schemes are simplistic examples of the type of arrangements which could be available, but need to be assessed on a case by case basis to assess the market position of the product, to take into account Competition Laws, which amongst other things include the prohibition of an abuse of dominance, distortion of the market, predatory pricing. The Medicines Act also needs to be taken into account to ensure there is no inducement to prescribe or the way in which the scheme is offered is not a breach of industry codes or anti-corruption laws, including the ABPI Code of Practice and the Bribery Act.