Pharmaceutical Commerce - September/October 2011 - (Page 1)

duct 2011 Pro y rit Secu nt uppleme S p. 20 B Business Strategies for Pharma/Bio Success WWW.PHARMACEUTICALCOMMERCE.COM SEPTEMBER/OCTOBER 2011 Brand Marketing & Communications Business Finance The Ongoing Diabetes Battleground Even as diagnosed (and “prediabetes”) cases rise worldwide, healthcare providers struggle with patients to control the course of the disease. New therapies—and new health services—are aiding in the battle By Suzanne Shelley Getting a Better Business Picture Through Gross-to-Net Analytics Small changes in contract terms can have large consequences in net revenue By Robert Matsuk, HighPoint Solutions Although diabetes has been high on the radar screen of healthcare providers and public health administrators for years, the number of patients (mostly Type 2, or adult-onset) continues to rise—and at a pace that is accelerating. The Centers for Disease Control and Prevention counted 18.8 million diagnosed cases in 2010, and 7.0 million undiagnosed—25.8 billion total, or 8.3% of the US population. Longitudinal data show that cases and have risen from 10.87 million in 1999 (4.0% of population) to 20.67 million (6.86%) in 2009. The frustration arises because not only is the disease preventable for a large proportion of patients (by changes in lifestyle and diet), even patients already under treatment seem to be flipping a coin whether to actively manage their disease and prevent its progession—or not. Diabetes treatment was the fastest-growing segment, in dollar value, among 14 therapy classes tracked by IMS Health, with overall sales of $16.9 billion in 2010, up 12.5% from the year before. Pharma manufacturers, besides developing an impressive list of new treatments, have been investing in a range of ancillary services SOURCE: WHO azertyuopsd er yu r yu fhjklmwxcvbn jk m j mw taztertyuops t fhjklmwaetcv jk mw m bznazertyuop September 18 fhjklmwxcvd bnazertyuops fhjklmwxcvbn Sunday CENTRAL of Medicine, 103 and 5 PARK, NYC New York Academy rd 12:00pm - 6:00pm th Ave LET’S CYCLE, THROW, JUMP AND HOOP TO FIGHT CANCER, DIABETES, HEART AND LUNG DISEASE Follow us on As today’s sales and marketing channels becoming increasingly complex, so do the structure of contract terms with customers. Enter gross-to-net management, a regulatory obligation for manufacturers to accrue for discounts and other financial elements and properly state these liabilities on income statements. Excellence in gross-to-net management, however, can have much broader implications, as companies that can more accurately forecast discount liabilities can also apply these principles to understand the potential impact of contract decisions on their business. For example, a company that can predict with more certainty that paying a greater rebate for “preferred” status on a formulary that has little impact on its sales volume and market share will be in an advantageous position to minimize rebates and thus improve its net selling price. Through improved gross-to-net management, a company that can achieve merely a 1% percent change in net price can often have a 5-10% impact on its profit. Industry studies have also found over and over again that continued on page 14 > for patients and providers to try to bring some control onto the disease, including medication adherence, health coaching and social media— all with mixed success. Everyone hopes for a formula to bring the condition under control because the outlook continues to worsen. Some 79 million Americans have prediabetes (meaning that they have multiple risk factors that could lead to full-blown diabetes). And at a global level, diabetes is growing, especially under newly industrialized nations. Worldwide, the World Health Organisation (Geneva) estimates that 346 million people have diabetes. WHO has brought several global health organizations together under an umbrella of “non-communicable diseases” (including cancer, heart disease, chronic lung diseases and stroke), which is the subject of a high-level global forum as the United Nations convenes this September; the theme is “Unite in the Fight.” (Fig. 1) Pipeline progress “In recent years, a real urgency to innovate has driven the pursuit of several new classes of medicines in diabetes therapy, each with a continued on page 16 > Manufacturing & Packaging Contract Packagers, 3PLs Vie for Pharma ‘Kitting’ Services When pharma deliveries involve a multicomponent kit, contractors offer dedicated services By F.J. Quinn Most pharmaceuticals are packaged in bulk bottles for delivery to pharmacies, or as dose-specific packages that are in turn packed in cartons and pallets. But nearly any pharmaceutical in the market also has a varied list of special packaging requirements, such as sample packages, combined drug and delivery components (such as syringes), along with promotional materials, medication guides and the like. The clinical trial world brings an order-of-magnitude increase in testing and component combinations. For these and other applications, a kit-assembly process, or “kitting” is the order of the day. And rather than adding to labor- and equipment-intensive processes, manufacturers are increasingly relying on contractors— primarily contract packagers and third-party logistics (3PLs) providers—to supply kitting services more efficiently. “Utilizing logistics providers like ourselves is essentially one-stop shopping for our customers,” declares Jeff Luthman, VP, life sciences solutions at MD Logistics (Plainfield, IN). “Our service offerings improve repackaging cycle time and reduce overall costs.” continued on page 25 > MENDOTA, IL PERMIT 200 PRSRT STD US POSTAGE PAID http://WWW.PHARMACEUTICALCOMMERCE.COM

Table of Contents for the Digital Edition of Pharmaceutical Commerce - September/October 2011

Pharmaceutical Commerce - September/October 2011
Table of Contents
Top News
Business / Finance
Brand Communications
Supply Chain / Logistics
Manufacturing & Packaging
Information Technology
Meetings and Editorial Index

Pharmaceutical Commerce - September/October 2011