Canadian Pricing Strategy for a New Point-of-Care Testing System

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Medical device description: A point-of-care/ near patient testing (POCT/NPT) system comprised of an analyzer, test cartridges, and consumables. Designed to enable better patient care by providing faster, easier access to lab results within clinic and physician office settings compared to traditional core lab based testing. 

Medical device country of origin: USA

Business challenge/ Project objective: The medical device manufacturer commissioned our services to recommend a pricing strategy that factored in Canadian market specific drivers such as healthcare policies, customer practices, payor and reimbursement mechanisms, and competitive forces. The objective was to recommend a pricing strategy that would maximize and optimize sales and profits for the manufacturer in Canada. 

Our actions: We undertook a Canadian pricing study encompassing desktop research, primary research, voice of the customer, procurement environment research, reimbursement environment research, competitive analyses, clinical and economic value analyses, and proprietary price models. 

Project outcomes: The project outcome was a comprehensive pricing strategy comprised of multi-tier pricing recommendations for both the overall POCT/NPT system and its individual components.  Our recommendations allowed the medical device manufacturer to maximize its sales and profits in the diverse scenarios presented by both Canada’s RFP and private procurement markets. As a testimony to the value of this approach, our Canadian market targeted recommendations ended up being different from what the manufacturer would have assumed based on its experiences in other world markets. The manufacturer accepted our recommendations and implemented them for their device launch in Canada to great market success. 

Key takeaways: 

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  • Canada’s healthcare policy, procurement, reimbursement, payor, customer, and competitive environments and processes  can be quite distinct and unique compared to other world markets

  • In order to maximize sales and profits from the Canadian market operations, it is important for any medical device manufacturer to tailor their commercial strategies to the Canadian market conditions 

Important policy note: It is always our policy to protect our clients’ confidential information . Given the highly competitive nature of the MD&D market, our clients need us to keep their strategic project investments made with our firm as confidential . For this reason, we do not publish client identification information in our case studies. If required, we would be pleased to arrange for client references from this project for prospective clients, provided the prospective clients do not have a conflict of interest with this project’s client.    

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