Correspondence: Roman Rittweger, Vilshofener Strae 8 München 81679, Germany. Tel: +49 700 1212 1912; Fax: +49 700 1212 1912; e-mail: roman.rittweger@advisorsinhealthcare.com Web: www.advisorsinhealthcare.com

¹is a DVM and holds a postgraduate MPH degree from Munich university. During the last 15 years he has held several positions in the pharmaceutical industry, with managed care providers as well as in the consulting business. His main areas of expertise involve business development, health economics and care management. He joined Roman Rittweger Advisors in Healthcare as a Partner in 2006.

²is an MD and holds an MBA from INSEAD. He worked as a consultant at A.T.Kearney and McKinsey & Company. He is the founder of ArztPartner almeda AG, an innovative disease management provider for payors which was taken over by DKV AG (Europe's largest private payor) in 2001. He was Managing Partner with BBDO Consulting, where he was responsible for healthcare. In 2006, he founded Roman Rittweger Advisors in Healthcare, an advisory group specialised in market-driven strategy.

Received 13 August 2007; Revised 13 August 2007.

Abstract

As health care systems are continuously fragmenting into diversified care models with underlying specific cost models, pricing and reimbursement is becoming an increasingly complex issue for drug companies. The main challenge is to incorporate a payor's perspective into price calculation while pinpointing the adequate product value. This paper describes the situation in Germany and proposes a multi-dimensional model enabling companies to create a decision algorithm leading to more precise individual pricing and thus a stronger position in reimbursement negotiations.