Exploring the Concept of Dynamic Pricing


In this Pharmaceutical Commerce video interview, Blake Powers, CEO of Medigi, discusses his first byline with the publication, along with why the industry may be stuck in its ways in certain aspects.

PC: You recently penned your first byline, which has appeared in the June issue of Pharma Commerce. What does it discuss?

Powers: What I'm doing here in the first write up is really contemplating digital platforms and dynamic pricing models, and what they've accomplished in other sectors. And really having an objective look about what it might appear if these technologies are applied to the pharma supply chain—taking a bit of a contrarian approach to some of the status quo models, and kind of looking at it from another angle and seeing what have other sectors accomplished from this kind of innovation and this dexterity with pricing, and how might it be applied to the pharma supply chain?

PC: Why do you believe the pharma sector is stuck in its ways, in terms of depending on older models that rely on long-term price negotiations that lock in prices?

Powers: I think a major reason is that fragmentation in this sector is naturally creating an uphill battle for any change agent that's entering the space. In terms of looking at what other commodities and services have accomplished with dynamic pricing in these digital platforms, I think it is important to take a closer look at medications and how they're distributed. There's a certain degree of scrutiny that certainly needs to be applied, because these are life-sustaining and life-saving medications. However, in the piece, I take the stance that the status quo models have their shortcomings, and I try to highlight the benefits, and take that position of, what would digital models taking a free-market type of approach, what kind of benefits would they have for pharmacies, sites of care, and drug manufacturers?

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