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Case Study 2

Business Type: 
Top 10 Pharmaceutical Company
Functional Area: 
Contract Analysis and Administration
Challenge: 

The organization felt that there was a "disconnect" between the "contract negotiation" business function and the "contract analysis" business function. The belief was that contract performance was not living up to the contract expectations determined at the onset of the agreement. The organization requested that PharmaMetrics help determine if the investment was valid/worthwhile true by apply their "Rational Pricing" methodology to their pricing process.

Business Challenges: 
  • The current administrative system did not have the ability to identify and break out key terms and conditions. This information was needed to complete a comprehensive analysis. This required PharmaMetrics and the customer to review and extract specific terms and conditions.
  • The administrative data was inconsistent and incomplete. This required us to identify and utilize other data sources.
  • Additional 3rd party data sources were integrated into the PharmaMetrics database to enhance the analysis processes.
Solution: 

PharmaMetrics analyzed over two years of data for two highly promoted brands from a combination of sixteen strategic PBMs and/or HMOs within the managed care market. We were given internal data from the administrative systems and loaded it into our business tool. Our software identified any gaps and inconsistencies, then analyzed the data from a performance perspective.

Results: 

As a result of PharmaMetrics' "gap analysis" we were able to identify non-performing and marginally performing investments that were not generating the expected ROI. PharmaMetrics also assisted the organization in profiling the accounts under review, to determine an "optimum" and rational price for each account.

  • Based upon PharmaMetrics analysis for one of the products, six accounts were identified as non-performing or marginally performing. Approximately $26 million per year was identified as non-performing investments
  • The other product had four non-performing accounts, generating $34 million per year of non performing investments
  • Over $79 million was identified as investments in accounts that were underperforming vs. national and regional performance
  •  “What sets PharmaMetrics apart is the depth and breadth of their true business knowledge.”
            -- Director, Contracts, Top 20 Pharma

  • “PharmaMetrics solutions can either be a complete business solution or independent modules that supplement your current business infrastructure.”
            -- Director, Contracts, Top 20 Pharma

  • “The implementation was easy and I didn’t need any training whatsoever. If you know how to do your job – the system follows your process. You don’t have to change your process to meet the systems needs.”
                -- Director, Corporate Compliance, Dermatological Company

  • “The industry experience and knowledge of their expanded team of experts sets them far apart from other service providers within the industry.”
                -- Director of Contracting, Amarin Pharma Inc.

  • “PharmaMetrics offers the services and software to handle all of our Managed Markets needs from front-end pricing analytics to the ban-end contract administration.”
            -- Sr. Director, Contract Management, Top 10 Pharma

  • “The robust reports generated enable more accurate forecasting and financial analysis.”
            -- Sr. Director, Top 10 Pharma