Optimizing Pricing Strategy for Chronic Pain Therapies

Overview

A leading pharmaceutical company in the pain management market partnered with Phronesis Partners to evaluate the pricing strategy for its chronic pain products and identify opportunities for improvement.

The company needed pricing decisions to reflect how patients, providers, and payers actually valued different chronic pain treatment options.

Objective

Their primary objectives were to:

• Understand patient willingness to pay for improved pain relief
• Determine how much price factors into provider prescribing decisions relative to effectiveness and safety
• Clarify how payers were evolving toward value-based pricing models
• Identify opportunities to align pricing strategy across all three stakeholder groups

Approach

Phronesis Partners employed a structured methodology to meet the client's objectives:

• Survey Design: Surveyed 500 patients living with chronic pain and 50 healthcare providers on treatment preferences, perceived value, and willingness to pay
• Stakeholder Interviews: Conducted in-depth interviews with 20 healthcare providers and 10 payers on pricing and reimbursement decision making
• Focus Groups: Held three focus groups of 8 to 10 patients each to explore real-world challenges in accessing effective pain management

Business Outcome

The research gave the pharmaceutical company a clearer path to a pricing strategy grounded in what patients, providers, and payers actually value:

• Confirmed that 80% of patients were willing to pay more for longer-lasting pain relief, validating a premium pricing opportunity
• Clarified that providers prioritize effectiveness and safety over cost when prescribing
• Identified a clear payer shift toward value-based, outcomes-driven pricing models

By aligning these three perspectives, the client gained a foundation for pricing strategies designed to improve both commercial performance and patient outcomes.