What exactly is the relationship between value and price
and how does this affect market shares
in the new market environment?

The value of a therapeutic depends on two parameters, i.e. product performance and price, in a relationship that is expressed as: VALUE = PERF / PRICE. Thus, the higher the performance over price, the higher the value. Nothing new so far.

Where many get it wrong in this equation is that the performance of a therapeutic may seem fixed by its product features, i.e. efficacy, safety, convenience … but in fact it is not. Indeed, in Market Access thinking performance also includes “perception” because in today’s new market environment, the perception stakeholders have about the performance of your drug determines their decisions.

The popular statement “perception is reality” is applicable here too. And as performance increases in the perception of the stakeholder, so does acceptability of a higher price. Strategic marketers should therefore think in terms of a Target Access Product Profile (TAPP) instead of the Target Product Profile (TPP) as required for market authorization, which stems from the physician-centric market system of the past.