How do you find prices
If a pharma company sells many drugs around the world and you want to find prices and volumes to forecast revenue growth how do you find prices? Shoud I just devide total revenue from each drug by total volume of that drug to determine prices for a drug? or should I try to find prices in each specific market directly? The point is a particular drug may have different price trends is different markets (in one market prices growing and in the others declining).
What do you recommend?
Thank you
That's very in depth stuff. Usually, at least in banking, the company, itself, will provide you some sort of insight into which direction you should take it with revenue (based on price projections, etc.). If you are trying to model it out yourself, the analysis usually doesn't get that deep. Obviously, if you want a supremely accurate picture of things, it would be helpful to try to look into every market and every potential price direction, but this leaves way too much room for forecast error. Also, nobody is striving for that level of accuracy.
I'm referring here to multinationals who have products in maybe 15 different markets. If you're talking about two or three different markets, it wouldn't hurt to take a look and make it a focal point of your analysis if you see any big price shifts happening. Shouldn't be too hard to get information for two or three markets.
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