Scenario Analysis of Product and Franchise Performance
With the Medicare Modernization Act (MMA) in effect as of January 1, 2006, pharmaceutical companies need to make urgent decisions regarding partnering opportunities to provide prescription drug benefits to seniors through Medicare. Drug manufacturers must develop new competitive strategies and assess their impacts in a radically altered marketplace. In partnership with a pharmaceutical client, Analysis Group has modeled various scenarios to estimate the impact of the MMA by geographic region on market share and product sales. The MMA model allows the client to see how variables such as plan enrollment, treatment rates, formulary position, rebates, share, and script volume translate into financial outcomes for its brands, to drive strategic decision-making.