The Pricing Pressure Erosion
List prices rise. Net prices fall. Your margins are eroding from every direction.
Net Price Erosion
Your margins are crumbling under pricing pressure
List vs Net Price Divergence
The Erosion Forces
Rebate Ratchet
PBMs demand higher rebates every contract cycle. 25% became 30% became 35%. Each concession becomes the new baseline. There's no bottom.
340B Expansion
More hospitals qualify for 340B pricing. What was 15% of volume is now 28%. Every unit sold at statutory discount chips away at your average net price.
GTN Cascade
Every Medicaid best price adjustment cascades to other payers. One aggressive contract poisons your entire price architecture.
The Erosion Reality
Protect Your Margins
SlideStrike transforms pricing data into erosion forecasts that help you make smarter contracting decisions.
Erosion Forecasting
Contract Optimization
Pricing Pressure FAQ
QWhat drives net price erosion?
Key drivers include: increasing PBM rebate demands, 340B program expansion, Medicaid best price cascades, competitive discounting, and payer consolidation giving buyers more leverage.
QHow fast are net prices declining?
Industry average gross-to-net (GTN) is eroding 3-5% annually. Some specialty categories see 6-8% annual erosion. This compounds quickly - 5% annual erosion means 22% decline over 5 years.
QCan pricing pressure be resisted?
Strategies include: value-based contracts, outcomes-based pricing, 340B carve-outs, and portfolio bundling. However, market dynamics make sustained resistance difficult for most products.
QHow does IRA impact pricing strategy?
The Inflation Reduction Act adds Medicare negotiation pressure on top products and rebate penalties for price increases above inflation. This accelerates erosion for Medicare-heavy portfolios.
Stop the Erosion. Protect Your Net.
See how SlideStrike helps CCOs forecast and manage net price erosion across their portfolios.
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