PharmaDB
Use case · Pricing & Cost Benchmarks · Price-Volume Elasticity Proxy v.04.2026 · refreshed weekly
Use cases Pricing & Cost Benchmarks Price-Volume Elasticity Proxy
Pricing & Cost Benchmarks Buyer view Molecule · sitagliptin Data · trade flowsData · lane volume aggregates Live

Price-Volume Elasticity Proxy

Observe lane-level price drops alongside volume gains. The empirical elasticity proxy for any molecule-destination, computed from declared customs.

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Example output · sitagliptin India → Philippines, 2024 · median fell 53%, shipments rose 51%, elasticity -0.96
$0.85 USD/kg · median · the bid line
n=140 shipments · trade warehouse, last 24 months Indicative

Sitagliptin India-into-Philippines is unit-elastic, with median falling from $1.82 to $0.85/kg and shipment count rising from 92 to 139 across 2023 to 2024. The implied elasticity coefficient is roughly -0.96; a 1% price drop returns close to 1% volume gain. The Myanmar lane is hyper-elastic at the same molecule (-5.1 coefficient): price fell 41% and volume rose 210%. Volume rebates on hyper-elastic lanes are decision-aligned; on inelastic lanes they are revenue leakage.

p25 · aggressive entry
$0.30
deals get done
median · the bid line
$0.85
where the market clears
p75 · premium
$1.50
likely loses
Distribution · 9 price buckets
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
$2.00+
Price change
-53%
Volume change
+51%
Elasticity coefficient
-0.96
Classification
Unit-elastic
30 seconds

How it works

molecule losartan origin IN destination BR
01

Pick a molecule or lane.

Single lane or a full portfolio scan. Default window is the latest full year vs the prior year.

0 HHI 0.42 1
computed · pre-joined · anonymised
02

The AI agent computes the implied elasticity.

Lane-level price change and shipment-count change are computed YoY. The ratio of the two is the implied elasticity coefficient; lanes are bucketed as inelastic (-0 to -0.5), unit-elastic (-0.5 to -1.5), or hyper-elastic (below -1.5).

brief · cited
Lane concentration · structurally concentrated
HHI0.42
Top-3 share71%
Actionqualify second source
03

Save the elasticity brief.

Citation-anchored brief: the price change, the volume change, the implied coefficient, the classification, and the recommended posture for volume rebates and tender bids.

Why a commercial team runs it

Empirical elasticity, not assumed.

Lane-specific, not blended.

Same molecule shows different elasticity in different destinations. The Philippines is unit-elastic on sitagliptin; the EU markets are inelastic. The map is at the lane resolution, not the molecule average.

Volume rebate decisions, supported.

Customers ask for volume rebates. The elasticity classification answers whether the rebate returns the volume to make the math work. Elastic = grant; inelastic = decline.

Shipment count is the proxy.

Customs reports clearance count, not unit-level volume. The proxy holds for most molecules with stable pack-size; the brief surfaces a confidence chip when pack-size variation is high.

Refreshes weekly.

Trade aggregates refresh weekly. The elasticity surface reruns on every refresh; the brief carries the exact computation timestamp.

What a real chat looks like

Type a lane. The AI agent returns the elasticity.

A real chat thread in PharmaDB. Type a question, the AI agent runs the tools, the answer lands as a saveable note.

Elasticity · sitagliptin → Philippines
chat · saved 2 min ago
You
For sitagliptin India-out, surface lanes where median price has fallen and shipment count has risen year-on-year.
F
Running tool pharmagraph_query
molecule_country_flow self-join · sitagliptin · IN-out · 2024 vs 2023
F
Sitagliptin India → Philippines is unit-elastic in 2024: median fell from $1.82 to $0.85/kg and shipments rose from 92 to 139. The implied coefficient is -0.96. A volume rebate request from a Philippines tender buyer makes math sense; the price drop has historically returned matching volume. On the inelastic Saudi Arabia lane (4.4M USD value, $6.63 median, volume stable on flat price) the same rebate request is revenue leakage.
Price change
-53%
Volume change
+51%
Elasticity coefficient
-0.96
Classification
Unit-elastic
Cited molecule_country_flow sitagliptin · 18 destinations lane_competitiveness per-lane HHI molecule_catalog INN matched
Ask a follow-up... ⌘ ↵
Time-to-answer

Manual workflow vs. PharmaDB.

Manual workflow
Excel · email · syndicated reports
  1. 01 Pull customs for current + prior year 4-5 hr
  2. 02 Compute median and shipment count per lane 2 hr
  3. 03 Join and compute YoY price and volume change 2-3 hr
  4. 04 Compute elasticity coefficient per lane 1-2 hr
  5. 05 Build classification table and brief 2-3 hr
Total cycle time 1-2 days per portfolio scan
PharmaDB
The AI agent · one query · cited
One query.
Pre-joined warehouse. The lane-level YoY price-and-volume join is computed at the schema layer. The AI agent returns the elasticity table with the classification and recommended posture inline.
Total cycle time Under a minute
Run it across your portfolio

Where the elasticity sits, per lane.

Twelve lanes · 2023 to 2024 · India-origin · price drop with simultaneous volume gain.

Losartan IN → AO
$0.65
↓ 4%
Losartan IN → KH
$0.66
↓ 6%
Telmisartan IN → SC
$1.12
↓ 6%
Sitagliptin IN → PH
$0.85
↓ 53%
Telmisartan IN → VN
$1.04
↓ 15%
Imatinib IN → MM
$1.99
↓ 27%
Vildagliptin IN → MU
$2.89
↓ 21%
Sitagliptin IN → MM
$2.91
↓ 41%
Dolutegravir IN → TH
$4.99
↓ 34%
Abiraterone IN → US
$42.79
↓ 7%
Palbociclib IN → KE
$24.36
↓ 6%
Vildagliptin IN → EG
$70.50
↓ 47%
IQR (p25–p75) Median USD/kg ↓ YoY price drop · margin pressure · ↑ YoY price rise · tighter market

The elasticity proxy is the volume rebate gatekeeper. PharmaDB pairs the YoY price change with the YoY shipment-count change per lane and surfaces the implied elasticity coefficient. The view is molecule_country_flow self-joined. Refresh cadence is weekly.

FAQ

Frequently asked

Why is this called a proxy?+

True price elasticity needs unit-level volume (kg, packs, doses). Customs reports clearance shipment count, which approximates volume when pack-sizes are stable. PharmaDB labels the output as an elasticity proxy and surfaces a confidence chip when pack-size variation across the lane is high.

How is the coefficient computed?+

Percent change in shipment count divided by percent change in median USD/kg. A coefficient of -1 means a 1% price drop returns a 1% volume gain (unit-elastic). Below -1 is elastic; between 0 and -1 is inelastic. Coefficients above 0 (price drop with volume drop) are flagged as confounded.

What about confounding factors?+

Multiple. Tender wins, new entrant arrivals, demand shocks. The brief surfaces the lane HHI delta and the entrant count alongside the elasticity number so the user can read whether the volume gain is from elasticity or from a structural shift.

When does this matter most?+

Volume rebate decisions, tender bid pricing, and exit-vs-defend calls on eroding lanes. On elastic lanes, a price cut returns the volume to defend revenue. On inelastic lanes, the cut destroys margin without lifting volume.

How does this compare to econometric elasticity studies?+

PharmaDB output is a proxy derived from year-over-year trade aggregates; not a regression-controlled coefficient. It is the empirical signal a commercial team can act on without commissioning a study. Econometric studies add granularity; the proxy is the first-pass screen.

How fresh is the data?+

Trade aggregates refresh weekly. The elasticity proxy reruns on every refresh; the catalog row carries the exact timestamp.

Run your question.

Bring the molecule, the lane, or the supplier you're sourcing this week. The AI agent runs it on PharmaDB in 30 minutes. You keep the brief.

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