Friday, July 22, 2011

BUY GSK INDIA - THE BEST PRICING POLICIES

Among the phama MNC's in India, GSK has best mastered the art of price discovery.  They have discounted several products to suit to the purchasing power of emerging markets and this has helped them increase sales volume manifold.
They have recently launched Votrient and Revolade in India at a significant discount to US pricing. Votrient has shown best in class clinical data in Renal cancer (first line).  Votrient has reported  a 9.2 months PFS/. The discount is upto 40%. Votrient is indicated for renal cancer, while Revolade is an alternative for blood/platelet transfusion for patients sufferign from Idiopathic thrombocytopenia purpura (ITP).  Blood transfusion in India has its own risk (infection), hence revolade should be the preferred treatment

PRICING INITIATIVES BY GSK AND ITS IMPACT
  1. GSK has reduced the price of Avamys, allergic rhinitis treatment, by an average of 45% in over 40 MICs. This has resulted into an increase in the volume of units of Avamys sold in 2010 by 262%, which has off-set the price decrease.
  2. GSK has also reduced the price of Avodart,  treatment for benign prostatic hyperplasia (BPH), by an average of 27% in MICs, and sales volumes have increased significantly. In April 2010, GSK decreased the price of Avodart in Russia by c. 25%, resulting in an increase in volume of 132% vs. 2009.
  3. Monthly sales of Cervarix increased significantly in the Philippines after reducing the price of the vaccine by 60%. Similar results have been achieved in Indonesia and Vietnam with a more than 6-fold increase in the numbers of women vaccinated.
  4. Following feedback from local physicians for lower priced antibiotics given the high incidence of infectious diseases, GSK reduced the price of antibiotic Augmentin in early 2010 in Francophone West Africa by approx. one third. 6 months later, volumes had increased by approx. two thirds.
  5. By lowering Tykerb prices in India, GSK has been able to significantly improve volumes (about 50%)