Pragma
Pharma Commercial Intelligence · AI · Econometrics

When forecast error costs
$1.2 billion in backorders,
the model is the strategy.

Pragma Group builds econometric and AI-driven commercial intelligence systems for pharmaceutical organizations — pricing, demand forecasting, shortage detection, and AI governance. Built from production deployments, not academic templates.

15+
Years in pharma AI
4
Capability domains
6+
Geographies
EU AI Act
Compliant by design

Where econometrics meets
commercial decision-making

Four integrated disciplines built from production deployments in global pharmaceutical markets — not from academic templates.

01 · Pricing

Pricing & Revenue Optimization

Hospital and institutional elasticity modeling. Nonlinear demand response estimation. Revenue-maximizing price band design with cross-market reference pricing constraints. Confidence intervals, not point estimates.

Fixed EffectsIV EstimationGMMBayesian ShrinkageSpline Regression
02 · Forecasting

Demand Forecasting Architecture

Hybrid econometric and ML systems that combine causal structure with pattern detection. Calibration tracking via Brier scores. Automated alert thresholds and human-in-the-loop recalibration. Forecasts that degrade gracefully.

ARIMA/SARIMAGradient BoostingPIT TestsMonte CarloModel Stacking
03 · Shortage Intelligence

Shortage & Opportunity Intelligence

Automated competitor shortage detection across FDA and EMA databases. Revenue opportunity scoring by therapeutic overlap, geographic coverage, and production capacity. Elasticity-based substitution modeling for capture rate estimation.

NLP ScanningDiversion RatiosSwitching Cost ModelsOpportunity Scoring
04 · Governance

AI Governance & Decision Architecture

Override accountability frameworks. Calibration monitoring systems. Decision audit trails aligned with EU AI Act requirements. Institutional AI governance design that makes commercial AI systems auditable, not just functional.

Override LoggingDrift DetectionEU AI ActModel RegistryAudit Trails
Track Record · Pfizer US · 2020

$1.2 billion in backorders.
18% forecast error reduction.
$77 million recovered.

Pfizer US was processing $4.8B in annual orders with $1.2B unfulfilled — and paying $30M in contractual fines. The root cause: a demand forecasting architecture that systematically underpredicted demand surges. Eduardo's model reduced forecast error from 44.36% to 36.30%, cutting forecast-attributed backorders from $128M to $51M. Incremental recovery: $77M in a single 12-month deployment.

Custom boosting ensemble · bootstrapped aggregation · custom loss function · shelf-life constraints · 8-week deployment to production.

−18%
Forecast error reduction · Pfizer US · 12-month live deployment
$77M
Incremental backorder recovery over the previous forecasting model
DK
Game theory + ML · generic drug auction price prediction · Danish Ministry tenders
AU · US
Shortage intelligence & commercial forecasting · multiple geographies

Signal before scale.
Viability before commitment.

Engagements start with a focused diagnostic on real data. No multi-month discovery phases. Measurable economic signal within weeks. No vendor lock-in.

01
2–4 weeks

Viability Diagnostic

Signal validation on real portfolio data. Use-case prioritization. Risk mapping. Readiness assessment. Proof of economic value before broader commitment.

02
6–8 weeks

Focused Pilot

Live model on real product portfolio. Accuracy benchmarks. Revenue impact estimate. Documented learnings. Feasibility report with go/no-go recommendation.

03
8–12 weeks

Territory Roll-out

Multi-geography deployment. Automated pipelines. Executive dashboards. Team training. Practices embedded in operational workflow, not just in a consultant's notebook.

04
Ongoing

Enterprise Governance

Full audit trail. Override tracking. Calibration monitoring. EU AI Act compliance documentation. Institutional AI culture, not perpetual dependency on external advisors.

All engagements include knowledge transfer and open architectures. Actionable roadmaps that work with your existing stack. You own the IP. The goal is institutional capability — not recurring advisory dependency.

For the professionals who
own the commercial decisions

Online and in-company programmes built from production deployments. Methodology-first. Designed for pricing, forecasting, and commercial excellence teams in pharmaceutical organizations.

Pricing & Elasticity

Pharma Pricing Intelligence: Econometrics & AI

Hospital and institutional elasticity modeling. Cross-price estimation. Revenue band design. The quantitative toolkit for pricing professionals in regulated markets.

Advanced64hOnline + In-Company
Forecasting

Demand Forecasting Architecture for Pharma

Hybrid econometric and ML forecasting systems. Calibration tracking. Scenario simulation. From ARIMA foundations to ensemble methods and uncertainty quantification.

Advanced80hOnline + In-Company
Shortage Intelligence

Competitor Shortage Detection & Revenue Capture

Systematic monitoring frameworks. Revenue opportunity scoring. Substitution modeling. Turning competitor supply disruption into quantified commercial opportunity.

Intermediate40hOnline
AI Governance

AI Governance for Commercial Pharma Teams

Override accountability. Calibration monitoring. EU AI Act compliance for high-risk commercial AI systems. For the leaders who sign off on algorithmic decisions.

Executive32hOnline + In-Company
People & Org Analytics

People Analytics AI

Data-driven HR decision systems. Predictive attrition modeling. Algorithmic hiring and adverse impact analysis. For HR and commercial excellence leaders.

Intermediate96hOnline
Executive Programme

AI for Pharma Commercial Leaders

Strategic overview for C-suite and VP-level professionals. What AI can and cannot do in commercial pharma. Governance obligations. How to commission and evaluate technical work.

Executive16hIn-Company

The EU AI Act affects your commercial AI systems.
Kairós provides the governance layer.

Kairós is a sovereign European AI governance platform — a compliance infrastructure that sits between your organization and the AI systems you operate. For pharmaceutical companies deploying AI in pricing, forecasting, and HR decisions, EU AI Act high-risk obligations apply from August 2026.

EU AI Act GDPR ISO 42001 NIST AI RMF Audit Trails Model Registry
Learn about Kairós →
Eduardo Valencia
Strategic AI & Econometrics Architect · CAIO, Kairós

Econometrician. AI architect.
Pharma commercial specialist.

Eduardo Valencia has spent over fifteen years at the intersection of quantitative economics, machine learning, and pharmaceutical commercial intelligence. His work spans demand forecasting, pricing architecture, shortage detection, and AI governance — across markets in Europe, North America, and Asia-Pacific.

At Pfizer US, his forecasting model reduced backorder-attributed losses by $77M in a single deployment. His Master's research at UNED Applied Economics applied game theory and ML to predict bid prices in Denmark's generic drug procurement auctions — a system architecture covering data crawling, preprocessing, model training, and live validation.

He is co-founder and Chief AI Officer of Kairós, a sovereign European AI governance platform. Author of the Thinking AI Series — eight volumes on AI strategy, governance, and accountability. His full profile and publications are at eduardovalencia.com.

Panel Data Causal Inference Price Elasticity Demand Forecasting Game Theory ML Ensembles AI Governance EU AI Act Shortage Intelligence

Start with a diagnostic.

Engagements begin with a focused viability review on real data. If you're exploring advisory, in-company training, or course access, use this form.

Short diagnostics.
Real data.
No vendor lock-in.

Advisory engagements, in-company programmes, and course licensing for pharmaceutical commercial teams. All enquiries handled directly by Eduardo Valencia.

eduardo@pragmagroup.ai LinkedIn · Eduardo Valencia eduardovalencia.com
Formación en español

¿Buscas formación en inteligencia artificial en español?

Los programas de Pragma Group están en inglés y orientados a equipos comerciales farmacéuticos globales. Para formación ejecutiva en IA en español — Shadow AI, People Analytics, EU AI Act, prompting avanzado — visita Merickson IA, la plataforma de referencia para profesionales hispanohablantes.

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