Which pricing strategy is commonly used for novel breakthrough medications in oncology and rare diseases that allows pharmaceutical companies to set high initial prices but adjust over time?

In the competitive pharmaceutical industry, pricing strategies can make or break a medication's market success. Beyond R&D costs and clinical effectiveness, several strategic pricing models are employed to maximize both patient access and company profits. This trivia question explores a sophisticated pricing approach that has transformed how certain breakthrough medications enter the market.

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Value-based pricing with outcomes guarantees
Cost-plus pricing with R&D amortization
Reference pricing against therapeutic alternatives
Tiered pricing based on disease progression