OBJECTIVES: International Reference Pricing (IRP) is a key cost-containment method for health care payers. We have developed based on local experts and publically available IRP rules a user-friendly price management tool (Orange) designed to enable the real-time forecasting of the global pricing impact of a branded launched product price change in a single market. The objective of this analysis is to explore, using Orange, the potential impact of price reductions in key EU markets.  METHODS: Two price datasets were used to illustrate core features of the Orange tool. In the first all prices were set at €10 and in the second (real life dataset) prices were in the range of €1.78-2.86 (highest for UK followed by DE, ES, IT and FR). With each dataset prices were varied for Germany (DE), UK, France (FR), Spain (ES) and Italy (IT).   RESULTS: A DE price decrease would result in the greatest number of reductions elsewhere. A 10% decrease in DE (on €10) would lead to the same % reduction in FR, Romania (RO), Russia (RU), Slovenia (SI), Croatia (HR) and Luxembourg (LU) and smaller reductions in multiple other countries. A 10% reduction in UK would lead mainly to a 10% decrease in FR, RO and HR.  A 10% price reduction in FR would have greatest impact in HR (13%), SI and RU (10%) and in IT it would be FR, RO and RU (10%). Similar impacts were observed for ES. Based on the real life dataset, a 10% decrease DE would lead to a range of reductions across Europe including 16% in Denmark, 12% in Austria, 10% in HR and 5% in Netherlands.  CONCLUSIONS: Price reductions of branded therapies in any of the key European markets would likely have a significant impact on prices in other markets reducing overall profits for the pharmaceutical industry.