Business Model Based Pricing Strategy for Pharma Products in Southeast Asian Region

Abstract

Purpose To study pharmaceutical product procurement and pricing system in Southeast Asian countries and challenges, factors influencing and industry practices of the pricing. Methodology Study was carried out based on secondary data published in various journals, domain knowledge of the author and industry experts' inputs on the various business models and pricing practices. Findings Factors influencing pharmaceutical products pricing in markets under study including the government policy, distribution practices, selling expenses and industry practices. Research implications This article provides generic observations of product pricing in the context of prevailing regulatory and business environment. Individual strategies differ based on country, company, business model product and market strategy. Further study can be taken up to decide a product pricing model for individual model. Practical implications Provides basic reference for healthcare system, pharma product procurement practices and pricing strategies for industry and academia. Social implications Helps Industry and regulatory authorities in rationalising the generic drugs prices and increase the access to affordable medication which will address unmet needs of patients. Originality It is an original study carried out to understand and review on how industry is arriving at a business model based pricing for pharma products in Southeast Asian countries.