Pharmaceutical Commerce - July/August 2012 - (Page Cover1)

JuLy/AuguSt 2012 Brand Marketing & Communications Manufacturing/Packaging Home infusion enhances specialty pharmaceutical distribution With partial support from manufacturers themselves, home health services are emerging as a critical channel for specialties By Lena Anthony Emerging markets influence changes in global pharma distribution By F.J. Quinn Patients, payors and healthcare providers are discovering that many healthcare services traditionally delivered in a hospital, long-term care facility or even outpatient facility can be delivered just as effectively—if not more so—in the patient’s home. “Home health” as a type of medical service includes skilled nursing, hospice care, geriatric services and pain management, among others; and while home health providers dispense many types of medications, this distribution channel is critically important to injectable specialty drugs. For patients, home health services offer convenience (no travel), safety (no unnecessary exposure to hospital infection) and potential quality-of-life improvement. For payors, home health represents a significant cost savings. According to Russell Bodoff, president and CEO of the National Home Infusion Association (NHIA; Alexandria, VA), delivery of infusion therapy in the home is significantly less expensive than within a hospital setting. According to IMS Health’s 2011 National Health Perspectives, home health represented a Credit: Walgreens $2.8-billion retail channel for pharmaceuticals last year, up 7.7% over the prior year. Home health overall is a significant form of healthcare delivery: in Medicare alone, according to the annual report of the Medicare Payment Advisory Commission (MedPAC, an independent Congressional agency), payments for home health totaled $19.4 billion in 2010; Medicaid and commercial insurance add billions more. The service has seen dramatic swings over the past 20 years, as CMS alternately tries to take advantage of the potential cost efficiencies, and then sets tight limits on approved services to combat misuse. The 30-year-old home infusion industry has experienced healthy growth the past few years and is somewhere between a $9-11-billion dollar field, Bodoff says. NHIA currently has about 400 members representing 2,000 sites of care nationwide. “Our members range from small to large national and regional infusion organizations, as well as single site independent or hospital-based providers.” The industry also has been subject to consolidations, with the past three years seeing “very significant M & A activity,” according to Bodoff. For example, Walgreens acquired Crescent Healthcare (Anaheim, CA) earlier this year, and late last year CarePoint Partners (Cincinnati, OH) purchased the home infusion and enteral division of Pediatric Health Choice (Tampa, FL). Another group of players in the home health space are the specialty pharmacies that dispense not just infused continued on page 20 As pharmaceutical companies rapidly expand into emerging markets abroad, observers say they are running into complex challenges. Distribution issues are arising due to increasing security concerns, countryspecific regulatory compliance, and limited scope of infrastructure. But this has not stopped third-party logistics providers (3PLs) from developing a range of strategies and services to ensure Rx drugs are delivered safely and cost-effectively. “This is an exciting, yet challenging and complex time for the pharmaceutical industry, and there’s never been a better opportunity to create value through the supply chain,” declares Bill Hook, vice president of global strategy, UPS Healthcare Logistics (Atlanta, GA). “Companies are looking to the supply chain to create a competitive advantage, and they’re turning to 3PLs like UPS to deliver quantifiable value.” A 2010 study compiled by Harris Interactive (New York) for UPS shed light on the many distribution issues affecting pharmaceutical firms worldwide. Four in five healthcare companies surveyed are doing business with at least one country outside the US, despite a range of factors being cited as potential barriers to global expansion. The report found nearly half of the companies surveyed intend to expand into emerging countries through 2012, with the likes of Argentina, China, India and Brazil among the top areas targeted. “Growing and emerging markets like India and China, as well as within the BRICM countries and Turkey, are the places where this sector sees the most opportunity,” reports Angelos Orfanos, president, life sciences and continued on page 28 Brand Marketing & Communications Cloud computing enables true multichannel marketing A cloud-based network of marketing services providers will address the inefficiencies of current multichannel practices By Sarah Harper, Veeva Systems For the last 10 years, the technology that marketers need to successfully create, execute, measure and enhance multichannel marketing programs has fallen short. Some might even argue that the distractions of rapidly developing technologies around social media and mobile communications are hindering multichannel success. The disappointments that have occurred with many multichannel programs of the past few years boil down to cost, time and effectiveness. A truly integrated multichannel program devoted to a pharmaceutical brand can be a very costly IT project to implement—and that’s even before the operational elements are begun. The time it takes to conduct a campaign in one channel, obtain results and perform analytics can lag by months—all but destroying any chance to modify or tailor a campaign in progress. This lag, combined with the sheer difficulty of coordinating multiple channels (typically carried out by multiple marketing services contractors), can make the effectiveness of the overall effort questionable. Veeva Systems, which provides cloud-based customer-relationship continued on page 18 July | August 2012 Visit our new website at 1 PRSRT STD US POSTAGE PONTIAC, IL PERMIT 268 PAID

Table of Contents for the Digital Edition of Pharmaceutical Commerce - July/August 2012

Pharmaceutical Commerce - July/August 2012
Table of Contents
Top News
Brand Marketing & Communications
Supply Chain/Logistics
Information Technology
Manufacturing & Packaging
Legal & Regulatory
Executive Development
Meetings and Editorial Index

Pharmaceutical Commerce - July/August 2012