Press Release

Kalypso, PROS White Paper Provides Medical Device Manufacturers with Pricing, Negotiating Guidance Amidst Unprecedented Industry Challenges

Underscores Kalypso, PROS Partnership to Provide Advanced Pricing Solutions

HOUSTON, July 12, 2011 – PROS (NYSE: PRO), the world leader in pricing and revenue management software, and Kalypso, a premier innovation consulting firm, today announced the availability of a new white paper that takes an in-depth look at the challenges medical device manufacturers face in today’s rapidly evolving health care industry.

Titled “Maximizing Profit Capture for Medical Device Manufacturers,” the white paper offers a straightforward assessment into the divisive regulatory climate, as manufacturers face new requirements from hospitals and Group Purchasing Organizations (GPOs), while desperately seeking opportunities to trim costs.

Medical device manufacturers are also faced with new competitive pricing scenarios that no longer remain confidential, but instead are shared among hospitals via benchmarking services. The white paper offers specific strategies – combined with prescriptive pricing guidance and counsel – on how manufacturers can maximize profit capture in today’s strident environment.

Kalypso manager Tom Monheim authored the new white paper, with contributing support from PROS Medical Products Strategic Consultant Phil Holladay.

“In this period of extraordinary industry change and uncertainty, medical device manufacturers have little choice but to embrace strategic price management as a key element of their business plans,” said Monheim. “This new white paper explores strategies for optimizing pricing, with essential enablers necessary to sustain pricing excellence.”

“Pending regulations impose a 2.3 percent excise tax on gross revenues for medical device manufacturers, and these companies will require volume growth in excess of 20 percent to fully offset the tax and remain profit neutral,” said Holladay. “Astute manufacturers must be able to defend their pricing, manage variations and raise the bar on accountability to be successful in the upheaval of today’s health care climate.”

With the PROS Pricing Solution Suite, customers utilize a set of integrated software tools and supporting services based on three primary modules, including Scientific Analytics™, Price Optimizer™ and Deal Optimizer™. The power of the PROS solution, combined with the management consulting capabilities of Kalypso, helps to ensure customers’ success with their pricing initiatives, and also generates a positive impact on the company’s bottom line.

The announcement further underscores the Kalypso and PROS partnership. The two organizations provide advanced pricing solutions to companies in the manufacturing, distribution and services industries based on PROS technologies. As a PROS consulting and implementation partner, Kalypso offers a comprehensive scope of services, from consulting through full technical implementation. Customers directly benefit from the partnership through the in-depth domain knowledge Kalypso provides across these industries.

Kalypso, headquartered in Beachwood, Ohio, provides organizations with an integrated suite of consulting services. The firm combines management consulting with pricing process and technology skills. Kalypso consultants help companies correctly price and manage solutions throughout the product lifecycle. As a PROS consulting and implementation partner, Kalypso offers a comprehensive scope of services, from consulting through full technical implementation.

The new white paper is available on both the PROS and Kalypso websites.



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