Illustrative Reference Price Cascade

A simplified simulation of how launch order, visible prices and assumed cross-market referencing could affect the wider European price corridor.

DEMO | Fictional asset | Illustrative outputsVelantra (fictional)Systemic lupus erythematosusOral, once daily

The simulator uses illustrative reference-strength assumptions rather than reproducing the full statutory pricing rules of each country. A live model would require validation of reference baskets, price definitions, review timing and confidentiality arrangements.

Adjustable illustrative assumptions
Adjustable illustrative assumption
€17,200

User input

Illustrative German list price input, €17,200 at the recommended setting. US net price for reference: €61,500

20%

User input

55%

User input

An assumption about how aggressively authorities are taken to apply their baskets

User input

SE then NL then DE then UK then FR then IT then ES then PL

User input

User input

Recommended settingCalculated model outputThe simulator prices all eight markets, so figures differ from the recommended scenario, which launches 6 of 8.

Recommended strategy reference: €11,900 blended net and €151m five-year revenue.

Illustrative blended net price

€11,192

at the current simulator setting

Recommended setting

Illustrative five-year EU revenue

164m EUR

at the current simulator setting

Recommended setting

Modelled revenue impact of referencing

1.4m EUR

at the current simulator setting

Recommended setting

US revenue at risk

Contained

at the current simulator setting

Recommended setting

Net price by market, in launch order

The pale segment is the modelled price each market could have supported on its own that is lost to referencing under these assumptions.

What the current illustrative simulation shows
Illustrative strategic judgement

Under these assumptions, the current model suggests that launching the largest volume markets first pulls the visible anchor down to roughly 72 percent of the German list, with referencing markets then settling below their own modelled potential. Entering the tolerant markets first keeps the simulated anchor closer to the corridor.

The simulated effect of turning confidentiality off is a loss of about seven points of net price across markets at once, because the discount becomes referenceable in the model. On these assumptions that switch may outweigh any volume a visible discount could buy.

Modelled average time to first reimbursement under this sequence is about 18 months per market.