Pharmaceutical Commerce - July/August 2011 - (Page 15)

Business Finance Navitus PBM Rebrands, Re-Emphasizing Price Transparency Regional pharmacy benefit manager is on a growth curve Opening a Door to Asian Markets Invida experiences rapid growth as it puts ‘Booots on the ground’ in Southeast Asia Many North American pharma companies strive to open this market to manufacturers from Asia, but there is at least one company doing the reverse—providing access to Asian markets for manufactures from the rest of the world. The company is Invida (Singapore; www.invida.com), a joint venture between Quintiles, a leading contract research organization, Temesta Group, a investment company in Singapore, and Zeullig Pharma, a logistics and distribution manager based in Hong Kong. “We’re a commercialization engine for the fastest-growing markets in the world for pharmaceuticals, says John Graham, CEO, noting that growth rates for Asia have been averaging around 12% annually. Invida operates in most of southeast Asia, including India and China (but not Japan). The trio is positioned to manage clinical and medical affairs through Quintiles, distribution with Zuellig (one of the largest distributors in Asia) and sales and overall management of Invida itself, from Singapore. Most recently, the company entered into a distribution agreement with Sinclair Pharma, a London-based pharma manufacturer that is looking to Invida to open the Asian market. Founded in 2005, Invida now has 4,000 employees, revenue of $220 million, and represents some 60 manufacturers to 13 countries in the region. Graham says that efforts among the ASEAN countries (originally Indonesia, Malaysia, the Philippines, Singapore and Thailand; now including Cambodia, Vietnam and several other countries) to harmonize drug approvals and regulations are helping Invida’s continued growth. PC W hile the biggest PBMs, such as Medco and Express Scripts, look to merge and consolidate (see p. 9) more of the drug spend through their systems, other PBMs are tacking in their own direction—and apparently making headway. Navitus Health Solutions (Madison, WI) has recently established a new corporate identity, but its business model remains the same: a “zero-spread, full pass-through model, which focuses on high-touch service” and “lowest-net drug cost,” according to the company. Translation: unlike other PBMs, Navitus says it passes all rebates or discounts directly to its health-plan clients, charging only an administrative fee for the PBM service. Differential pricing for preferred placement on formularies is less feasible; and patient discounts such as coupons (which can sometimes thwart the goal of using lower cost, equivalent drugs) are more exposed to plan operators. “Our new logo and tagline—‘Share a Clear View’—emphasize transparency and openness,” says Terry Seligman, president, adding that with one million covered lives today, and an expectation of two million by 2012, “our clients ‘get it.’” It’s not that the company is hostile toward pharma marketing efforts, but that it puts a primary emphasis on clinical outcomes combined with price transparency, a sort of “what you see is what you get” approach. Brett Kelly, RPh, who is senior director for industry relations and contracting, notes that other PBMs are telling Wall Street that their financial performance will be improved in the next few years with the slew of patent expiries. “They call their higher profitability from new generics ‘spread revenue,’ and I ask you—where do you think that spread is coming from?” Seligman adds that the company encourages pharma involvement in improving health outcomes, and will be receptive to the evidence-based research that pharma companies might bring to the table. PC for Life Sciences on Path AND HANDLING CONCERNS N O S U C H T H I N G A S A “ L I T T L E ” M I S T A K E. Your products save lives. There is no margin for error in their handling. At DDN, 100% accuracy isn’t a goal, it’s a requirement. Because people depend on you, you can depend on us. Services | financial services customer call center IT services & reporting logistics reverse logistics contract management Solutions | cold chain company launch product launch international markets specialty products Call 888-374-8873 http://www.invida.com

Table of Contents for the Digital Edition of Pharmaceutical Commerce - July/August 2011

Pharmaceutical Commerce - July/August 2011
Contents
Op-Ed
Top News
Business/Finance
Brand Communications
Supply Chain/Logistics
Manufacturing & Packaging
Legal/Regulatory
Information Technology
PDMA Exhibitors
Meetings and Editorial Index

Pharmaceutical Commerce - July/August 2011

Pharmaceutical Commerce - July/August 2011 - Pharmaceutical Commerce - July/August 2011 (Page Cover1)
Pharmaceutical Commerce - July/August 2011 - Pharmaceutical Commerce - July/August 2011 (Page Cover2)
Pharmaceutical Commerce - July/August 2011 - Pharmaceutical Commerce - July/August 2011 (Page 3)
Pharmaceutical Commerce - July/August 2011 - Contents (Page 4)
Pharmaceutical Commerce - July/August 2011 - Contents (Page 5)
Pharmaceutical Commerce - July/August 2011 - Contents (Page 6)
Pharmaceutical Commerce - July/August 2011 - Op-Ed (Page 7)
Pharmaceutical Commerce - July/August 2011 - Top News (Page 8)
Pharmaceutical Commerce - July/August 2011 - Top News (Page 9)
Pharmaceutical Commerce - July/August 2011 - Top News (Page 10)
Pharmaceutical Commerce - July/August 2011 - Top News (Page 11)
Pharmaceutical Commerce - July/August 2011 - Business/Finance (Page 12)
Pharmaceutical Commerce - July/August 2011 - Business/Finance (Page 13)
Pharmaceutical Commerce - July/August 2011 - Business/Finance (Page 14)
Pharmaceutical Commerce - July/August 2011 - Business/Finance (Page 15)
Pharmaceutical Commerce - July/August 2011 - Brand Communications (Page 16)
Pharmaceutical Commerce - July/August 2011 - Brand Communications (Page 17)
Pharmaceutical Commerce - July/August 2011 - Brand Communications (Page 18)
Pharmaceutical Commerce - July/August 2011 - Brand Communications (Page 19)
Pharmaceutical Commerce - July/August 2011 - Supply Chain/Logistics (Page 20)
Pharmaceutical Commerce - July/August 2011 - Supply Chain/Logistics (Page 21)
Pharmaceutical Commerce - July/August 2011 - Supply Chain/Logistics (Page 22)
Pharmaceutical Commerce - July/August 2011 - Supply Chain/Logistics (Page 23)
Pharmaceutical Commerce - July/August 2011 - Supply Chain/Logistics (Page 24)
Pharmaceutical Commerce - July/August 2011 - Manufacturing & Packaging (Page 25)
Pharmaceutical Commerce - July/August 2011 - Manufacturing & Packaging (Page 26)
Pharmaceutical Commerce - July/August 2011 - Manufacturing & Packaging (Page 27)
Pharmaceutical Commerce - July/August 2011 - Legal/Regulatory (Page 28)
Pharmaceutical Commerce - July/August 2011 - Legal/Regulatory (Page 29)
Pharmaceutical Commerce - July/August 2011 - Information Technology (Page 30)
Pharmaceutical Commerce - July/August 2011 - Information Technology (Page 31)
Pharmaceutical Commerce - July/August 2011 - PDMA Exhibitors (Page 32)
Pharmaceutical Commerce - July/August 2011 - PDMA Exhibitors (Page 33)
Pharmaceutical Commerce - July/August 2011 - PDMA Exhibitors (Page 34)
Pharmaceutical Commerce - July/August 2011 - Meetings and Editorial Index (Page 35)
Pharmaceutical Commerce - July/August 2011 - Meetings and Editorial Index (Page Cover4)
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