Price trend analysis and its implications for the development of new medical technologies

A Brown, BJ Meenan, TP Young

Research output: Chapter in Book/Report/Conference proceedingConference contribution

2 Citations (Scopus)

Abstract

It is assumed that a company will only developa new medical technology if it has evidence that it willprovide returns that are greater than the investmentrequired to develop that technology and bring it to themarket. The price that can be commanded for the newproducts and the volumes of the products that are solddetermine, in large measure the returns that will be madeon the initial investment. Estimating the sales volumesand prices of products are critical factors in decisionmaking during product development. Once in the marketprices are not static. Rather they are affected by a rangeof factors. This paper considers the effect that marketexperience, represented by cumulative volume of sales,has on prices. How quickly the price declines in responseto experience is dependent on a number of factors. Howprice trends from products already in the market can beused to inform investment decisions of new products andtechnologies is described.
LanguageEnglish
Title of host publicationUnknown Host Publication
Pages5156-5159
Number of pages4
Publication statusPublished - 23 Aug 2007
Event29th Annual International Conference of the IEEE Engineering in Medicine and Biology Society - Lyon, France
Duration: 23 Aug 2007 → …

Conference

Conference29th Annual International Conference of the IEEE Engineering in Medicine and Biology Society
Period23/08/07 → …

Fingerprint

Trend analysis
Medical technology
Factors
Investment decision
Critical factors
Decision making
New products
Product development

Cite this

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title = "Price trend analysis and its implications for the development of new medical technologies",
abstract = "It is assumed that a company will only developa new medical technology if it has evidence that it willprovide returns that are greater than the investmentrequired to develop that technology and bring it to themarket. The price that can be commanded for the newproducts and the volumes of the products that are solddetermine, in large measure the returns that will be madeon the initial investment. Estimating the sales volumesand prices of products are critical factors in decisionmaking during product development. Once in the marketprices are not static. Rather they are affected by a rangeof factors. This paper considers the effect that marketexperience, represented by cumulative volume of sales,has on prices. How quickly the price declines in responseto experience is dependent on a number of factors. Howprice trends from products already in the market can beused to inform investment decisions of new products andtechnologies is described.",
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note = "Reference text: [1] B. D. Henderson. (1974, The experience curve - reviewed V. price stability. [2] Day, G. S, Montgomery and D. B, {"}Diagnosing the Experience Curve,{"} Journal of Marketing, vol. 47, pp. 44, Spring. 1983 [3] A. Brown, B. J. Meenan and T. P. Young, {"}Marketing Innovation: Medical Device Prices Follow the Experience Curve,{"} Journal of Medical Marketing, vol 7 (3), pp203 - 212, 2007.. [4] J. S. Kilby, “Invention of the Integrated Circuit,” IEEE Transactions on Electron Devices, vol ed-23, no 7, pp 648 – 654, 1976. [5] A. J. Girling, G. Freeman, J. Gordon, P. Poole-Wilson, D. A. Scott and R. J. Lilford, {"}Modelling payback from research into the efficacy of left ventricular devices as destination therapy. ,{"} International Journal of Technology Assessment in Health Care, vol. 23, 2007. [6] B. D. Henderson, {"}The application and misapplication of the experience curve,{"} Journal of Business Strategy, vol. 4, pp. 3-9, 1984.. [7] R. N. Dino, {"}Forecasting the Price Evolution of New Electronic Products,{"} Journal of Forecasting (Pre-1986), vol. 4, pp. 39, Jan-Mar. 1985. [8] M. B. Lieberman, {"}The Learning Curve and Pricing in the Chemical Processing Industries,{"} The Rand Journal of Economics, vol. 15, pp. 213, Summer. 1984. 5159",
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Brown, A, Meenan, BJ & Young, TP 2007, Price trend analysis and its implications for the development of new medical technologies. in Unknown Host Publication. pp. 5156-5159, 29th Annual International Conference of the IEEE Engineering in Medicine and Biology Society, 23/08/07.

Price trend analysis and its implications for the development of new medical technologies. / Brown, A; Meenan, BJ; Young, TP.

Unknown Host Publication. 2007. p. 5156-5159.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

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