Enabling efficient drug pricing processes in the life science sector 

Price negotiations with pharmaceutical companies are often intricate and complex, involving predefined financial scenarios or clinical outcomes. Before insurers can receive rebates, they must prove eligibility, a highly complex process often leading to missed cashback opportunities. Traditional systems, like Excel spreadsheets, are inadequate for this purpose, leading to insurers missing out on up to a third of possible rebates.

Everyone benefits from faster and better pricing and rebate management

Lyfegen has developed a patent-pending platform and rebate management system, allowing quick calculations and comprehensive transaction oversight. This speed and accuracy provide significant value to all stakeholders:

• Health insurers don't miss out on rebates without investing much time and money in the calculations.
• Life science companies can easily check if the rebates are justified, saving time and money.
• Patients benefit from the speed in pricing definitions, as health insurers only cover new medications once the pricing, including the potentially included rebates, has been defined and set up.

Data and simulations for a healthier world

Lyfegen is already active in seven countries and has built a comprehensive library of case studies and contract models, illustrating the necessary data points to determine success criteria like progression-free survival for cancer therapies. With the world's most sophisticated simulator, drug pricing models can be evaluated to speed up or enable the access to medication at more affordable costs for premium payers and patients.

The number of these drug pricing agreements is growing strongly over the last five years. In 2019 there were around 20 drugs with a drug rebate pricing models in Switzerland. Today, there are over 200 drug rebate pricing models in Switzerland. Michel Mohler and his team realized that traditional methods made processing and evaluating the necessary data inefficient. Through continuous customer feedback, Lyfegen optimized its platform and developed intuitive features that simplify complex rebate processes on the pharmaceutical and payer side alike. The exchange of data with one single source make the process more efficient for both, increasing transparency and promoting the network product – the more it is used, the more everyone benefits.

Overcoming internal challenges on the regulatory and pricing side

"The first customer was the hardest to win, but now, through word of mouth, validated case studies, and proven data protection and security concepts, acceptance has increased," says Mohler. Another one of the biggest challenges was pricing of the own services. As there were no direct comparison models for their service, Lyfegen had to test various approaches. "Pricing was difficult because we were doing something that didn't exist in this form anywhere else," Michel Mohler explained. The focus is on providing maximum value to customers and continuously improving the product based on their feedback.

Regulatory processes and data protection regulations are crucial for Lyfegen. The company has invested heavily in meeting quality and IT security standards to build trust. Through audits and certifications like ISO and SOC 2, Lyfegen has been able to meet the requirements of large pharmaceutical companies and establish itself in the market. "The first vendor checks on the customer level went very far; they even hired ethical hackers to test us," said Mohler. "But we had invested a lot in the first one to two years to implement data security models on the level of large companies and therefore withstood all testings."

At the core of Lyfegen's success is a strong team

Mohler is particularly proud of the team that he has built. All 33 employees from various fields and countries are striving for the best for the company. A strong team dynamic and a culture of mutual respect and support are the key to this: "It's essential to listen – to employees, investors, customers, and suppliers. Collecting ideas and bringing the people together for a reasonable solution is what we do well," Mohler emphasizes.

In the upcoming months, Lyfegen will focus on growth and validating its business model. Following a successful Series A funding round in 2022, the company aims to demonstrate revenue growth and positive gross margins. The SEF.Growth label received in May 2024 supports this next growth phase, offering access to the experiences of other entrepreneurs.