Pass-though on List Pricing measures was under 50% and financial targets were not being met on growth and profitability. Further exasperated due to ‘peanut butter’pricing (equal increases over all products) over the last several years, led to massive push back on some genetic tests and relatively low prices on other diagnostics.
First ascertained what the value was for each diagnostic test,from early diagnoses to preventative care, or alternative therapeutic pathways. Decoupled and repriced all panels to match new strategic outlook and built the first of a three-year process to right price the portfolio.
After list prices were address, net price optimization and contract analysis was undertaken. Given the new guidance and value analysis contracts were reestablished/negotiated under the new pricing schema. An arduous task considering the lopsided nature of the contracts, with no guaranteed minimums, blanket reductions, and evergreen clauses it took two years to course correct the contracts.
Finally, product management tools, KPI’s, and dashboards were built to regularly monitor price. Allowing for deep analysis on product portfolio alignment and next generation sequencing to sunset older product variants in third year of project work..
