The document discusses the complex process of incentivizing pharmaceutical sales representatives. It notes that designing sales incentive programs involves establishing quotas, measuring performance against quotas, and ensuring accurate sales data collection and mapping to territories while complying with regulations. An effective sales crediting process requires mapping prescription data to territories, applying business rules to remain compliant, and conducting quality checks to avoid errors and lawsuits. Key challenges include mapping scripts to reps, handling roster changes, and clearly defining rules to demonstrate fair compensation and avoid litigation.
Incentive compensation plan diagnosis in the pharmaceutical industryPunum Jagg
There are three key steps in diagnosing an incentive compensation plan for pharmaceutical sales representatives: evaluating the technology used to administer the plan, analyzing processes to identify inefficiencies, and conducting a thorough evaluation of the plan itself. This evaluation examines inherent issues in the business, whether plan metrics were achieved as intended, and potential biases in the plan design. Regular diagnostic evaluations allow companies to continuously improve their plans and ensure goals are properly aligned with business objectives.
Thomas Müller, MD & Pharmacist, Head of Pharmaceuticals Dept Federal Joint Committee.
Pharma Pricing & Market Access Congress 2017
22 February 2017
London
This document discusses various marketing strategies for pharmaceutical products. It begins with defining key terminology related to drugs, such as generic, branded, patented, and over-the-counter medicines. It then outlines general marketing strategies such as market expansion, market share growth, niche markets, and market exit. Specific strategies for market leaders, challengers, followers, and niche players are also discussed. The document also covers marketing strategies over the different stages of the product lifecycle from introduction to growth, maturity, and decline. Finally, it discusses elements of the pharmaceutical marketing mix including product, price, promotion, and place.
The document provides an analysis of the Pakistan pharmaceutical market. Some key points:
- The total Pakistan pharma market is US$2.177 billion and is growing at a CAGR of 10.22% in US dollars.
- The top 11 corporations have reached Rs. 5 billion in sales and account for 49.22% of the market share.
- Top 50 corporations control 86% of the market and top 100 corporations control 95.95% of the market.
- 398 new products were launched in the last 12 months, with 20 from multinational corporations and 378 from national companies.
Presentation of the "Smart Field Force Framework" which has been developed to help pharma companies design the best organizational model to support the right strategy and tactics
This document discusses outsourcing in the pharmaceutical industry. It defines outsourcing as transferring portions of work to outside suppliers in order to reduce costs. The main types of outsourcing in pharma include research and development, clinical trials, manufacturing, packaging, and sales/marketing. The key drivers of outsourcing are focusing on core strengths, reducing costs, and decreasing time to market. While outsourcing provides advantages like cost reductions, it also presents risks such as loss of managerial control and internal talent. Overall, outsourcing allows pharma companies to exploit new drug technologies while solving problems, though successful management of vendor relationships is critical.
The medical advisor provides a bridge between clinical research and marketing/sales departments. They authoritatively answer medically and scientifically based questions, educate colleagues, build relationships, share knowledge, and help realize the full medical value of prescription drugs. As part of a brand team, they help guide strategy, distill scientific data, contribute to promotional materials, and approve materials. They measure success through identified experts, presentations, publications, training sales reps, and positive feedback.
This document discusses key concepts in marketing including needs, wants, demands, markets, and different marketing concepts like production, product, selling, and societal marketing. It defines marketing as identifying customer needs and wants and fulfilling them. Needs are basic requirements while wants are specific desires. Demands require both ability and willingness to purchase. The production concept focuses on availability and cost, while the product concept emphasizes quality. The selling concept views customers as resistant so promotion is key. The marketing concept satisfies customer needs to achieve organizational goals. The societal marketing concept balances customer, social, and company interests.
Incentive compensation plan diagnosis in the pharmaceutical industryPunum Jagg
There are three key steps in diagnosing an incentive compensation plan for pharmaceutical sales representatives: evaluating the technology used to administer the plan, analyzing processes to identify inefficiencies, and conducting a thorough evaluation of the plan itself. This evaluation examines inherent issues in the business, whether plan metrics were achieved as intended, and potential biases in the plan design. Regular diagnostic evaluations allow companies to continuously improve their plans and ensure goals are properly aligned with business objectives.
Thomas Müller, MD & Pharmacist, Head of Pharmaceuticals Dept Federal Joint Committee.
Pharma Pricing & Market Access Congress 2017
22 February 2017
London
This document discusses various marketing strategies for pharmaceutical products. It begins with defining key terminology related to drugs, such as generic, branded, patented, and over-the-counter medicines. It then outlines general marketing strategies such as market expansion, market share growth, niche markets, and market exit. Specific strategies for market leaders, challengers, followers, and niche players are also discussed. The document also covers marketing strategies over the different stages of the product lifecycle from introduction to growth, maturity, and decline. Finally, it discusses elements of the pharmaceutical marketing mix including product, price, promotion, and place.
The document provides an analysis of the Pakistan pharmaceutical market. Some key points:
- The total Pakistan pharma market is US$2.177 billion and is growing at a CAGR of 10.22% in US dollars.
- The top 11 corporations have reached Rs. 5 billion in sales and account for 49.22% of the market share.
- Top 50 corporations control 86% of the market and top 100 corporations control 95.95% of the market.
- 398 new products were launched in the last 12 months, with 20 from multinational corporations and 378 from national companies.
Presentation of the "Smart Field Force Framework" which has been developed to help pharma companies design the best organizational model to support the right strategy and tactics
This document discusses outsourcing in the pharmaceutical industry. It defines outsourcing as transferring portions of work to outside suppliers in order to reduce costs. The main types of outsourcing in pharma include research and development, clinical trials, manufacturing, packaging, and sales/marketing. The key drivers of outsourcing are focusing on core strengths, reducing costs, and decreasing time to market. While outsourcing provides advantages like cost reductions, it also presents risks such as loss of managerial control and internal talent. Overall, outsourcing allows pharma companies to exploit new drug technologies while solving problems, though successful management of vendor relationships is critical.
The medical advisor provides a bridge between clinical research and marketing/sales departments. They authoritatively answer medically and scientifically based questions, educate colleagues, build relationships, share knowledge, and help realize the full medical value of prescription drugs. As part of a brand team, they help guide strategy, distill scientific data, contribute to promotional materials, and approve materials. They measure success through identified experts, presentations, publications, training sales reps, and positive feedback.
This document discusses key concepts in marketing including needs, wants, demands, markets, and different marketing concepts like production, product, selling, and societal marketing. It defines marketing as identifying customer needs and wants and fulfilling them. Needs are basic requirements while wants are specific desires. Demands require both ability and willingness to purchase. The production concept focuses on availability and cost, while the product concept emphasizes quality. The selling concept views customers as resistant so promotion is key. The marketing concept satisfies customer needs to achieve organizational goals. The societal marketing concept balances customer, social, and company interests.
This document discusses pharmaceutical marketing management. It begins with definitions of pharmaceutical marketing, strategy, and planning. It then covers the key aspects of marketing planning including defining mission and goals, situational analysis, developing strategies, and implementation. The marketing mix of product, price, placement, and promotion is explained. The document also discusses how to use PubMed and standard treatment algorithms to build effective brand communication strategies.
This document discusses strategies for launching new pharmaceutical brands. It outlines that successful product launching depends on coordination across functions. The purpose is to build sales. A launching strategy consists of marketing decisions, activities, and product attributes to present the product to its target market. The objectives are to generate income. Key aspects of launching strategy include being first to market, a first follower, or delayed entrant. Marketing decisions include market entry strategy, product positioning, and marketing mix. Strategic decisions involve company strategy, product strategy, market strategy, and competitive strategy. Tactical decisions involve the marketing mix of product, price, promotion, and distribution. Success depends on customer performance, financial performance, and technical performance. The document provides details on various strategic
This document summarizes a presentation on crisis management and communication given by Khalid Bahabri. The presentation defines the differences between an emergency, disaster, and crisis. It discusses the impact of ineffective crisis management, the phases of crisis management and communication, and the importance of social media in crisis response. Examples are provided of both good and bad crisis management, emphasizing the need for preparedness, leadership, responsibility, empathy, and speed in response. Contact details are also included for the speaker and presentation organization.
The basics of launching a pharmaceutical drug-
Based on studies done on the practices of 13 top pharmaceutical companies in the world.
For more, write to info@markivmedical.com
Organized by Knowledge Partner is a consulting firm that was started in 2002 to provide services to companies seeking business expansion. It has well equipped offices in India and Dubai, and is present in 20 countries and 5 cities in India through channel partners. The firm's dedicated team of over 35 employees and 15 freelancers provide strategic consulting services such as market assessments, market entry strategies, product testing, and business optimization.
The Indian pharmaceutical market is growing due to rising healthcare expenditure, lifestyle diseases, and favorable government policies. However, the market faces challenges from a lack of awareness, price controls, and competition from branded drugs. The government is taking steps to promote generic drugs through schemes like Jan Aushadhi which provides low cost
Product lifecycle management in the pharmaceutical industryGeorgi Daskalov
Pharmaceutical companies face pressure to improve product pipelines, accelerate time to market, and improve margins on existing products, while maintaining strict regulatory compliance. A comprehensive product lifecycle management (PLM) solution can help address these challenges by providing visibility and control across the entire drug development process from discovery through commercialization. PLM focuses on leveraging research and development efforts to efficiently develop new drugs and move them through the various phases of the drug lifecycle from the different internal and external functions involved. This allows for improved collaboration and management of changes to optimize profitability throughout the drug's economic life.
New Product Planning in the Pharmaceutical IndustryAnthony Russell
Lecture presented in the Competitive Intelligence and Pricing course as part of the University of Southern California Master of Science in Healthcare Decision Analysis program. Presented on June 14, 2020 at USC via Zoom. The lectures gives an overview of what new product planning is in the pharmaceutical industry, what tools are used during new product evaluations, and the key elements of a new product business case. The lecture includes a couple of case studies to be worked on by the class.
The document discusses marketing strategies for branded and generic antibiotics, focusing on Clamoxyl, an amoxicillin antibiotic. It summarizes that Clamoxyl was initially very successful due to heavy promotion, but faced increased competition from generic amoxicillin and combination antibiotics like Augmentin over time. Government regulation in France aimed to reduce drug costs by encouraging generic substitution, which contributed to Clamoxyl's declining market share in the late 1990s. The document provides historical context on antibiotic development and details marketing approaches across the pharmaceutical industry in France.
Sales Force Effectiveness is Dead ... or is it?
Five opportunities for pharma to get ‘back to basics’ and immediately lift sales performance.
Blackdot are a full service benchmarking, consulting, training & advisory firm exclusively focused on lifting sales force effectiveness & efficiency. Blackdot exist to assist their clients to achieve more predictable, repeatable, and sustainable sales performance.
What makes them unique is their total fixation on the use of data-driven, evidence-based techniques to understand what does (and does not) drive sales performance.
By viewing the ‘sales engine’ holistically, as an ecosystem of component parts that work interdependently to impact sales results, Blackdot are able to identify the root cause of what’s inhibiting and enabling your current performance, including quantifying the payoff in actually getting it right.
Armed with this knowledge, Blackdot stand alongside their clients who engage them to define, implement and embed change programs that bridge the gap between ‘hoping’ and ‘knowing’ they’ll deliver top and bottom line performance improvement.
Promotional activities of pharmaceutical industryAbdu Nasir H
This document discusses promotional activities of the pharmaceutical industry. It defines promotion as activities to encourage product sales and describes the pharmaceutical representative's role in visiting medical practitioners to promote drugs. There are four main types of promotional activities: advertising, personal selling, sales promotion, and public relations. Personal selling through pharmaceutical representatives meeting with doctors is identified as the most influential promotional method. The document also discusses three examples of effective promotional practices: engaging commercial advertising agents to design campaigns, using detailing techniques to improve prescribing, and pharmaceutical representatives being most influential in changing prescribing behaviors.
This PPT deck displays fourty slides with in depth research. Our Annual Strategic Planning Powerpoint Presentation Slides presentation deck is a helpful tool to plan, prepare, document and analyse the topic with a clear approach. We provide a ready to use deck with all sorts of relevant topics subtopics templates, charts and graphs, overviews, analysis templates. Outline all the important aspects without any hassle.It showcases of all kind of editable templates infographics for an inclusive and comprehensive Annual Strategic Planning Powerpoint Presentation Slides presentation. Professionals, managers, individual and team involved in any company organization from any field can use them as per requirement.
How Many Types of Marketing Strategies in Pharma Sector? - Ambit Bio Medixambitbiomedix12
If you are looking to many types of Marketing Strategies in Pharma Sector then Ambit Bio Medix is one of best top 10 pharma franchise companies at the best price. Here are the Many Types of Marketing Strategies in Pharma Sector.
This document provides an overview of the electronic Common Technical Document (eCTD) format used for regulatory drug submissions. It discusses the history and goals of the ICH and eCTD, the components and structure of an eCTD, best practices for preparing documents, and software options. Key points covered include the folder structure, use of XML and metadata, concept of reuse and granularity, and comparing the benefits of eCTD to traditional paper submissions. The conclusion emphasizes that adopting eCTD is essential to joining the electronic bandwagon, while also needing intermediate steps to fully transition from paper CTD formats.
Business Development & Licensing concepts, methods and tools. From theory to practice.
Application to the pharmaceutical sector. Guidelines and recommendations
Outsourcing is a Cost-effective strategy when used properly and at present is gaining more and more importance. Here's a short presentation about the importance of outsourcing in Clinical research.
This document discusses strategies for launching new products. It covers several key points:
1. Successful product launching depends on coordination across functions and preparation.
2. Strategic decisions for launching include identifying customers, product positioning, and developing an appropriate marketing mix.
3. Tactical decisions involve the "4 Ps" of marketing - product, price, place (distribution), and promotion.
4. The document provides an overview of different product life cycle stages and strategies for each stage.
A brief description about International marketing, nature of international marketing, evaluating international marketing, develop international marketing objectives,product marketing strategies
The purpose of this report is to provide key information and robust analyses to better optimize drug valuation, from the pharmaceutical companies perspective
Helping Pharmas Manage Compliance Risks for Speaker ProgramsCognizant
To avoid stiff fees, reputation damage and the imposition of corporate integrity agreements (CIAs), pharmaceuticals companies need to monitor their speaker programs carefully for compliance to a suite of regulations. We identify those rules and outline a rigorous process based on relevant key performance indicators (KPIs) that will enable pharmas to head off these potential major hits to their bottom line.
Strategies to Enhance Pharmacy Benefit ManagementTransparentRx
This document provides strategies for self-insured employers to better manage pharmacy benefit costs and performance. It recommends marshaling in-house expertise to better understand how PBMs generate profits through various pricing strategies. It also suggests replacing traditional RFP processes with reverse auctions to drive more competitive pricing from PBMs, particularly for specialty drugs. Overall, the document aims to educate employers on optimizing PBM contracts and strategies to control rising prescription drug costs.
This document discusses pharmaceutical marketing management. It begins with definitions of pharmaceutical marketing, strategy, and planning. It then covers the key aspects of marketing planning including defining mission and goals, situational analysis, developing strategies, and implementation. The marketing mix of product, price, placement, and promotion is explained. The document also discusses how to use PubMed and standard treatment algorithms to build effective brand communication strategies.
This document discusses strategies for launching new pharmaceutical brands. It outlines that successful product launching depends on coordination across functions. The purpose is to build sales. A launching strategy consists of marketing decisions, activities, and product attributes to present the product to its target market. The objectives are to generate income. Key aspects of launching strategy include being first to market, a first follower, or delayed entrant. Marketing decisions include market entry strategy, product positioning, and marketing mix. Strategic decisions involve company strategy, product strategy, market strategy, and competitive strategy. Tactical decisions involve the marketing mix of product, price, promotion, and distribution. Success depends on customer performance, financial performance, and technical performance. The document provides details on various strategic
This document summarizes a presentation on crisis management and communication given by Khalid Bahabri. The presentation defines the differences between an emergency, disaster, and crisis. It discusses the impact of ineffective crisis management, the phases of crisis management and communication, and the importance of social media in crisis response. Examples are provided of both good and bad crisis management, emphasizing the need for preparedness, leadership, responsibility, empathy, and speed in response. Contact details are also included for the speaker and presentation organization.
The basics of launching a pharmaceutical drug-
Based on studies done on the practices of 13 top pharmaceutical companies in the world.
For more, write to info@markivmedical.com
Organized by Knowledge Partner is a consulting firm that was started in 2002 to provide services to companies seeking business expansion. It has well equipped offices in India and Dubai, and is present in 20 countries and 5 cities in India through channel partners. The firm's dedicated team of over 35 employees and 15 freelancers provide strategic consulting services such as market assessments, market entry strategies, product testing, and business optimization.
The Indian pharmaceutical market is growing due to rising healthcare expenditure, lifestyle diseases, and favorable government policies. However, the market faces challenges from a lack of awareness, price controls, and competition from branded drugs. The government is taking steps to promote generic drugs through schemes like Jan Aushadhi which provides low cost
Product lifecycle management in the pharmaceutical industryGeorgi Daskalov
Pharmaceutical companies face pressure to improve product pipelines, accelerate time to market, and improve margins on existing products, while maintaining strict regulatory compliance. A comprehensive product lifecycle management (PLM) solution can help address these challenges by providing visibility and control across the entire drug development process from discovery through commercialization. PLM focuses on leveraging research and development efforts to efficiently develop new drugs and move them through the various phases of the drug lifecycle from the different internal and external functions involved. This allows for improved collaboration and management of changes to optimize profitability throughout the drug's economic life.
New Product Planning in the Pharmaceutical IndustryAnthony Russell
Lecture presented in the Competitive Intelligence and Pricing course as part of the University of Southern California Master of Science in Healthcare Decision Analysis program. Presented on June 14, 2020 at USC via Zoom. The lectures gives an overview of what new product planning is in the pharmaceutical industry, what tools are used during new product evaluations, and the key elements of a new product business case. The lecture includes a couple of case studies to be worked on by the class.
The document discusses marketing strategies for branded and generic antibiotics, focusing on Clamoxyl, an amoxicillin antibiotic. It summarizes that Clamoxyl was initially very successful due to heavy promotion, but faced increased competition from generic amoxicillin and combination antibiotics like Augmentin over time. Government regulation in France aimed to reduce drug costs by encouraging generic substitution, which contributed to Clamoxyl's declining market share in the late 1990s. The document provides historical context on antibiotic development and details marketing approaches across the pharmaceutical industry in France.
Sales Force Effectiveness is Dead ... or is it?
Five opportunities for pharma to get ‘back to basics’ and immediately lift sales performance.
Blackdot are a full service benchmarking, consulting, training & advisory firm exclusively focused on lifting sales force effectiveness & efficiency. Blackdot exist to assist their clients to achieve more predictable, repeatable, and sustainable sales performance.
What makes them unique is their total fixation on the use of data-driven, evidence-based techniques to understand what does (and does not) drive sales performance.
By viewing the ‘sales engine’ holistically, as an ecosystem of component parts that work interdependently to impact sales results, Blackdot are able to identify the root cause of what’s inhibiting and enabling your current performance, including quantifying the payoff in actually getting it right.
Armed with this knowledge, Blackdot stand alongside their clients who engage them to define, implement and embed change programs that bridge the gap between ‘hoping’ and ‘knowing’ they’ll deliver top and bottom line performance improvement.
Promotional activities of pharmaceutical industryAbdu Nasir H
This document discusses promotional activities of the pharmaceutical industry. It defines promotion as activities to encourage product sales and describes the pharmaceutical representative's role in visiting medical practitioners to promote drugs. There are four main types of promotional activities: advertising, personal selling, sales promotion, and public relations. Personal selling through pharmaceutical representatives meeting with doctors is identified as the most influential promotional method. The document also discusses three examples of effective promotional practices: engaging commercial advertising agents to design campaigns, using detailing techniques to improve prescribing, and pharmaceutical representatives being most influential in changing prescribing behaviors.
This PPT deck displays fourty slides with in depth research. Our Annual Strategic Planning Powerpoint Presentation Slides presentation deck is a helpful tool to plan, prepare, document and analyse the topic with a clear approach. We provide a ready to use deck with all sorts of relevant topics subtopics templates, charts and graphs, overviews, analysis templates. Outline all the important aspects without any hassle.It showcases of all kind of editable templates infographics for an inclusive and comprehensive Annual Strategic Planning Powerpoint Presentation Slides presentation. Professionals, managers, individual and team involved in any company organization from any field can use them as per requirement.
How Many Types of Marketing Strategies in Pharma Sector? - Ambit Bio Medixambitbiomedix12
If you are looking to many types of Marketing Strategies in Pharma Sector then Ambit Bio Medix is one of best top 10 pharma franchise companies at the best price. Here are the Many Types of Marketing Strategies in Pharma Sector.
This document provides an overview of the electronic Common Technical Document (eCTD) format used for regulatory drug submissions. It discusses the history and goals of the ICH and eCTD, the components and structure of an eCTD, best practices for preparing documents, and software options. Key points covered include the folder structure, use of XML and metadata, concept of reuse and granularity, and comparing the benefits of eCTD to traditional paper submissions. The conclusion emphasizes that adopting eCTD is essential to joining the electronic bandwagon, while also needing intermediate steps to fully transition from paper CTD formats.
Business Development & Licensing concepts, methods and tools. From theory to practice.
Application to the pharmaceutical sector. Guidelines and recommendations
Outsourcing is a Cost-effective strategy when used properly and at present is gaining more and more importance. Here's a short presentation about the importance of outsourcing in Clinical research.
This document discusses strategies for launching new products. It covers several key points:
1. Successful product launching depends on coordination across functions and preparation.
2. Strategic decisions for launching include identifying customers, product positioning, and developing an appropriate marketing mix.
3. Tactical decisions involve the "4 Ps" of marketing - product, price, place (distribution), and promotion.
4. The document provides an overview of different product life cycle stages and strategies for each stage.
A brief description about International marketing, nature of international marketing, evaluating international marketing, develop international marketing objectives,product marketing strategies
The purpose of this report is to provide key information and robust analyses to better optimize drug valuation, from the pharmaceutical companies perspective
Helping Pharmas Manage Compliance Risks for Speaker ProgramsCognizant
To avoid stiff fees, reputation damage and the imposition of corporate integrity agreements (CIAs), pharmaceuticals companies need to monitor their speaker programs carefully for compliance to a suite of regulations. We identify those rules and outline a rigorous process based on relevant key performance indicators (KPIs) that will enable pharmas to head off these potential major hits to their bottom line.
Strategies to Enhance Pharmacy Benefit ManagementTransparentRx
This document provides strategies for self-insured employers to better manage pharmacy benefit costs and performance. It recommends marshaling in-house expertise to better understand how PBMs generate profits through various pricing strategies. It also suggests replacing traditional RFP processes with reverse auctions to drive more competitive pricing from PBMs, particularly for specialty drugs. Overall, the document aims to educate employers on optimizing PBM contracts and strategies to control rising prescription drug costs.
Mastering Pharmacy Medical Billing + Claims Submissionkendall100
Claim your free access to invaluable pharmacy billing guides and streamline your processes with confidence. Pharmacy billing encompasses submitting claims to insurance payers for reimbursement for pharmacy services. These services range from dispensing medications to providing medication therapy management (MTM) and other clinical interventions you can bill for!
Here's what bio-pharma organizations need to know when transforming the promotional material review and approval process from a transactional requirement to a competitive advantage.
Pegging Brand Performance Measures to the Metrics that Really MatterCognizant
The document discusses frameworks for measuring brand performance in the pharmaceutical industry. It suggests that effective frameworks should focus on leading indicators that provide insights into future success, rather than just lagging sales metrics. It provides examples of key performance indicators that could be used at different stages of the brand lifecycle, in various geographies, and for primary vs. specialty care brands. The frameworks are intended to help pharmaceutical companies improve decision-making and maximize the value of each new brand launch.
The document discusses the need for pharmaceutical companies to adopt key account management (KAM) as a new sales model. Changes in the US healthcare system over the past few decades, including the rise of integrated delivery networks and changes to insurance and payment models, have decreased pharmaceutical companies' influence over individual stakeholders. KAM is presented as an approach that can help pharmaceutical companies engage with larger healthcare organizations in a way that ensures brand development and sales in this new environment.
USA Pharmacy Benefits Management Market OverviewNiraj Singhvi
This report is prepared by Maple Growth Partners, an investment research and strategic advisory firm.
Our US-based middle-market focused private equity client assigned us to review the pharmacy benefits management sector.
Here, they were largely interested in the broad overview of the sector and addressable market size opportunity for various services segments. In addition to this, we presented overall generic and specialty drug spending trend in the US, along with a detailed discussion on the shift to transparency and PBM rebates.
We also provided a detailed section on how do PBMs make money, segmenting PBM gross profits into five distinct revenue sources. Further, there is an interesting piece of analysis of President Trump’s changing stance on prescription drugs before and after presidency campaign.
Later, we analyzed the competitive intensity within the sector and gathered that top 3 firms account for ~80% market share. In such a highly concentrated industry, we presented our insights on how small or mid-sized firms are sustaining their operations largely by offering specialized services.
We identified ~200 relevant competitors or bolt-on targets across the 21 PBM service segments and provided a detailed one-pager profile for each of them.
This overall 300 pager report is categorized by ~100 page industry overview and ~200 page of company profiles
While the full report is exclusively prepared for the said client, we have provided a gist of our overall analysis to showcase our research capabilities, especially for a niche market such as PBM.
This document discusses whether in-house dispensing is right for a medical practice. It begins by defining in-house dispensing as a pharmacy operated within a medical practice to exclusively serve that practice's patients. The document then outlines key topics to consider regarding in-house dispensing, including the market, legal issues, impact on patients, business analysis, operational issues, and program recommendations. It aims to provide an objective understanding of in-house dispensing to help practices determine if it is suitable for them.
Laurs & Bridz Pharmaceuticals Private Limited (Laurs & Bridz) is a state-of-the-art generic pharmaceutical company that exports products worldwide and specializes in combination drugs. With over 80 employees and 15,000 customers, the growing company needs a customer relationship management (CRM) solution to better manage customer information and strengthen relationships. Laurs & Bridz is considering several CRM systems to help sales and marketing while building robust customer tracking and enhanced salesforce productivity.
7 Things about Pharmacy Billing and ReimbursementJessica Parker
Knowledge coupled with the right technology and a good monitoring system can leverage pharmacy billing to a profit bearing system that can lead to an effective Revenue Cycle Management (RCM) process. http://goo.gl/At6aiz
IMS Health - Creating Connected Solutions For Better Healthcare PerformanceWesley van Schilt
The document discusses various services provided by IMS Health to help pharmaceutical companies improve performance across different areas like sales, medical teams, marketing, market access, and finance. Some key services mentioned include:
- Analyzing sales force structure and aligning territories to optimize performance.
- Profiling stakeholders and physicians to identify best prospects and direct sales efforts.
- Providing market insights and analytics to pharmaceutical marketers to optimize brand strategies and resource allocation.
- Developing value dossiers for market access professionals to ensure fast market access and reimbursement.
- Providing business intelligence and analytical tools to help finance directors accurately forecast sales, analyze performance, and ensure regulatory compliance.
Pharmacies must follow several guidelines when billing for prescriptions:
1) Pharmacies must register with NCPDP to receive a unique identification number for billing purposes and sign contracts with Pharmacy Benefit Managers to bill claims.
2) Pharmacies must determine whether medications are covered by Medicare Part A, Part B, or Part D based on factors like how they are administered.
3) Claims must be submitted electronically and pharmacies must verify coverage, perform drug utilization reviews, and track drug distribution before filling prescriptions to comply with billing processes.
Building Relationships with Doctors for Effective Marketing in Pharma Industr...Shahzad Khan
The document discusses customer relationship management (CRM) strategies for pharmaceutical companies in India. It outlines an IDIC model approach for CRM involving identification, differentiation, interaction, and customization of target doctors. Key aspects include classifying doctors by importance, collecting detailed profile information, and customizing engagement based on doctors' interests to build loyalty. Measurement of prescription behavior is also discussed to evaluate CRM program effectiveness. Overall the CRM approach aims to strengthen relationships with doctors through personalized engagement and rewards to increase brand promotion and prescriptions.
Sales models are evolving to meet the new challenges of today’s market, and incentive compensation and measurement plans are changing as a result. As the new environment of pharma sales shifts to more specialized and consumer-centric approaches, the industry will need to respond to adequately compensate and incentivize its sales teams. Our experts say prescription numbers will remain the predominant measurement for sales rep performance in the near term, but eventually, the industry will have to create IC plans that include alternative methods of measurement. Our experts report that the change has begun, albeit very slowly. New measures will be added to the compensation mix to more broadly capture the performance of sales representatives and while script metrics won’t disappear, they will definitely have a smaller impact
Launch readiness 3 keys to success for sales leadersDario Priolo
The document discusses 3 keys for sales leaders to successfully launch new products: 1) Align product messaging with customer needs by focusing on how the product solves problems rather than just product attributes. Develop "solution messaging cards" to guide discussions. 2) Align sales competencies with new customer expectations around account management, consultative dialogues, and clinical selling skills. 3) Assess sales teams' competency levels and create learning plans to prepare them for the critical first 6 months of a product launch. Proper preparation across these three areas can help sales teams maximize their impact within the key launch window.
4 PREMIUM - Launch Readiness - 3 Keys to Success for Sales Leadersbansley01
Three keys are needed for sales leaders to successfully launch new products: 1) Developing solution-focused messaging that addresses customers' problems rather than just product features; 2) Ensuring sales representatives have competencies aligned with customers' new expectations around clinical evidence and healthcare business acumen; 3) Implementing a buyer-aligned sales process that fits the growing complexity of healthcare customers. Addressing these areas can help sales teams maximize their performance within the critical 6-month launch window.
1) Express Scripts is the largest pharmacy benefit manager (PBM) in the US but faces slowing growth as its core business reaches maturity. It lacks a compelling valuation and trades around its estimated fair value.
2) Intensifying competition in the pharmaceutical industry may lead to price wars that threaten Express Scripts' business model of aggressively negotiating lower drug prices.
3) Given Express Scripts' maturing business and risks to future growth, investors have an opportunity to realize gains by selling their shares in the company.
PCD PHARMA FRANCHISE COMPANY - AROGYA FORMULATIONS PVT LTD..pptxArogya Formulations
Arogya Formulations is a leading PCD Pharma Franchise Company that specializes in offering a wide range of high-quality pharmaceutical products. With a commitment to health and wellness, the company provides excellent opportunities for individuals and businesses to join their PCD (Propaganda Cum Distribution) Pharma franchise network. Arogya Formulations focuses on delivering innovative and affordable healthcare solutions, ensuring the availability of top-notch pharmaceutical products across various therapeutic segments. The company's dedication to quality, integrity, and customer satisfaction makes it a trusted partner for those seeking to establish a successful presence in the pharmaceutical industry through franchise opportunities.
Visit us at: https://arogyaformulations.com/pcd-pharma-franchise-company/
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Pharma Sales Crediting: Incentives for Accurate & Compliant Processes
1. Pharma Sales
Crediting:
Incentives for
Accurate &
Compliant
Processes
Incentive compensation in the
pharmaceuticals industry is filled
with complexities and nuances.
Understanding data sources, sales
territories and industry regulations
is the foundation for a process
that should keep reps focused on
business results.
Executive Summary
Designing and implementing a pharmaceuti-
cals sales incentive program to measure and
reward the performance of individual sales rep-
resentatives isn’t a trivial pursuit. The first step
is to establish quotas that account for market
potential and market access. The next step is to
measure success against those benchmarks.
Most pharma companies purchase prescription
sales data collected at U.S. pharmacy chains by
healthcare information providers as their primary
input to compute incentive payouts for their sales
reps. From this point on, the complexity grows
exponentially. First, organizations must ensure
that prescription sales data is correctly mapped
to their internal systems; further, they must run
the data against their business rules to remain in
compliance with federal and industry regulations.
Sales reps should get credit only for promoting
brands approved by the brand team and/or detail-
ing healthcare practitioners (HCPs) approved
by regulatory bodies. The process is crucial for
avoiding violations and litigation, but there is no
standard methodology and the potential for pro-
cess gaps is high.
Cognizant 20-20 Insights | July 2018
COGNIZANT 20-20 INSIGHTS
2. 2Pharma Sales Crediting: Incentives for Accurate & Compliant Processes | 1
A well-documented, audit-ready process for
compensating the sales force is necessary to
demonstrate that there are no incentives to
encourage noncompliant activities.
This white paper examines these complexities
and risks, identifies requisites for a robust sales
crediting process, and highlights the checks that
should be in place to discover and mitigate haz-
ards. It captures best practices in sales incentive
program management to help companies drive
performance in their sales organization and
avoid costly errors.
BUT FIRST, SOME BUSINESS
CONTEXT
The U.S. pharmaceuticals industry is highly reg-
ulated and subject to constant scrutiny by state
and federal government agencies. Among the
laws with which commercial operations within
a pharma company must comply are the federal
Anti-Kickback Statute, the Medicaid Drug Rebate
Program, the Prescription Drug Marketing Act
and the Physician Payments Sunshine Act.
During the last few years, more than 30 pharma
companies have entered into corporate integ-
rity agreements (CIAs)1
with the U.S. Office of the
Inspector General (OIG) for the Department of
Health and Human Services. The OIG negotiates
CIAs with health care providers, pharma compa-
nies and other entities as part of a settlement
resulting from investigations into federal health-
care program violations. When an entity agrees to
the obligations, the OIG (in exchange) agrees not
to seek its exclusion from participation in Medicare,
Medicaid or other federal healthcare programs.
CIAs enforce compliance with healthcare reg-
ulations and are typically valid for five years.
Violation of the CIA leads to heavy financial
penalties, and may require a pharma company
to enter into a second or third CIA. Accord-
ingly, a well-documented, audit-ready process
for compensating the sales force is necessary
to demonstrate that there are no incentives to
encourage noncompliant activities.
In addition to federal and state laws, several med-
ical organizations have rules that impact pharma
sales incentives programs. For instance, the
American Medical Association (AMA) provides
a means for physicians to opt out of allowing
pharma sales reps to have access to their pre-
scribing data. Pharma companies are required
to monitor the list of opted-out physicians quar-
terly, and if an audit finds that a sales rep was
compensated for prescriptions from such a phy-
sician, then the company faces fines.
Setting and Adjusting Quotas
Determining the proper quota for each sales ter-
ritory requires collaboration with brand teams
and the market intelligence, market access and
human resources departments. Formulary deci-
sions by payers and health systems increasingly
Cognizant 20-20 Insights
3. 3Pharma Sales Crediting: Incentives for Accurate & Compliant Processes |
Cognizant 20-20 Insights
Most pharma companies have several types of sales
roles. One team may have reps selling multiple
products; another may have its reps selling a single
blockbuster brand. Additionally, there are hybrid,
overlay and mirror teams to promote products and
compete in certain markets.
affect the rep’s ability to influence prescription
volume. Also, since payer market share varies
by region of the country, changes in formulary
status affect sales territories differently by
brand. Quotas need to reflect the increase in
market potential when a new or existing drug
receives preferred status on a formulary list by
a payer with significant market share in a rep’s
territory, and the quota should decrease when it
becomes a non-preferred brand.
Leading pharma companies’ sales incentive plans
must identify payer influences, capture sales at the
payer level and adjust quotas based on their influence.
Sales Crediting
Sales crediting can be summarized as the process
of aggregating prescription sales at the pre-
scriber level (or unit or dollar sales at an account
level) to customized geographies using multiple
data sources, and then assigning these geogra-
phy-level sales to a sales rep’s territory. This data
is then aligned with individual sales reps, and is
then rolled up to district or regional managers.
Prescription sales data is collected at U.S. pharmacy
chains by data vendors and sold to pharma compa-
nies. Typically, the following information is available:
• NRx: This represents new prescriptions,
meaning it is the first time a patient has been
prescribed a particular drug.
• TRx: This represents total prescriptions sold,
including new prescriptions and refills.
• NBRx: This represents new-to-brand pre-
scriptions.
• APLD: This provides longitudinal data on
patients over time (i.e., which therapies were
aligned with which claims filed; were the
claimants hospitalized; etc.).
Sales territories are often difficult to define. In
fact, most pharma companies have several types
of sales roles. One team may have reps selling
multiple products; another may have its reps
selling a single blockbuster brand. Additionally,
there are hybrid, overlay and mirror teams to
promote products and compete in certain mar-
kets. Because of these complexities, there are
inherent challenges in aligning prescription data
to the proper territory or territories and ensuring
each sales rep is appropriately compensated.
Pharma companies can face lawsuits from their
own sales reps for incorrectly calculating incen-
tive payments. Even without a lawsuit, pharma
companies will invest considerable time and
effort reanalyzing data and rectifying mistakes.
Incorrect sales crediting and inaccurate payouts
can demotivate sales representatives.
4. Cognizant 20-20 Insights
4Pharma Sales Crediting: Incentives for Accurate & Compliant Processes |
There are complexities associated with each
parameter within the sales crediting process (see
Figure 1). Pharma companies must identify and
resolve these complexities in advance to ensure
accuracy and regulatory compliance.
CHALLENGES IN REGISTERING A
SALES SCRIPT
Sales reps invest significant time in detailing the
biological science and patient benefits of the
products they represent to HCPs to generate a
prescription – or “script.” However, sales reps
also invest their time in “chasing the script,”
requesting that management assign missing
credit for sales from an HCP that they detailed.
This is time better spent on promoting the com-
pany’s drugs and increasing sales.
Each script written by an HCP and filled by a
pharmacy can influence a rep’s compensation,
but several factors can affect the outcome:
• Sales reps promote their drug, but HCPs will
use their best judgement to write a script
while consulting the patient. The patient may
influence the decision based on their health
plan coverage.
• When the patient goes to a pharmacy to get a
prescription for a brand-name product filled,
the pharmacist may recommend an alterna-
tive drug such as a generic version or one
with a better formulary status, helping the
patient save money on the co-pay.
• When the patient is ready for a refill, there are
two opportunities for loss of sales credit:
»» Patient visits the HCP for consultation and
based on the response to the initial treat-
ment the HCP recommends a different
drug, diminishing sales for the rep.
»» The patient visits a pharmacy for a
prescription refill, and the pharmacist
recommends an alternative version of the
same therapy to the patient, who accepts
that option, resulting in the loss of a sales
script for the rep.
Figure 2, next page, depicts a schematic flow of
the sales script generation process.
Cognizant 20-20 Insights
Parameters of a Sales Crediting Framework
Figure 1
Brand Performance Goals
Sales Reps’ Performance
Objectives
Customers (HCP, Payer Mix &
Other Influencers)
Sales Crediting Process Framework
5. Cognizant 20-20 Insights
5Pharma Sales Crediting: Incentives for Accurate & Compliant Processes |
Tracking the Script
Figure 2
CHALLENGES A VIGILANT
SALES CREDITING PROCESS
CAN RESOLVE
While building a sales crediting process, the com-
pliance challenges faced by a pharma company
fall into two broad groups:
• HCPs involved in litigations or lawsuits:
A pharma company’s sales reps should not
detail HCPs who are facing a lawsuit or have
litigation pending. If they do, they put their
company at risk of compliance violations if it
is hit with a federal or internal audit.
• Brand-approved HCPs: Every brand team has
a set of approved specialties for a given thera-
peutic area, and they want their reps to target
HCPs only from these approved specialties.
Hence, it is important to include HCPs only
from brand-approved specialties and exclude
those from any other specialty.
Alignment and data challenges include:
• Assigning sales: There are many instances
where an HCP is present in two different terri-
tories and is detailed by different reps. In such
cases, it is imperative to ensure that both the
reps are credited for this HCP.
• Verifying inbound data: An ideal sales cred-
iting process should always match product
ID numbers (own vs. competitor) in the sales
data with those present in the brand-specified
market definition. At times, data vendors may
miss client-specific product ID numbers, which
can lead to incorrect sales crediting. Missing a
product ID may not have significant financial
impact, but it could become a compliance issue.
Sales rep details
an HCP about
the drug.
Patient
visits the HCP for
consultation.
HCP prescribes drugs
based on consultation
and according to
patient’s health plan.
Patient goes to
pharmacy to order
drugs.
Patient pays their
share of cost of
the drug. Heath
insurance pays the
remainder.
Whole transaction is
recorded by pharmacy
and data is collected
by an authorized data
vendor.
Data vendor
normalizes the data
and quantifies the
sales script in TRx,
NRx, NBRx, etc.
Does the patient
need a prescription
refill?
Data is consumed
by pharmaceuticals
companies for
analysis, studies, etc.
Does the patient needs
follow-up visits?
Pharmacy provides
the same drug or
an alternative drug
based on patient’s
health plan.
YES
YES
6. Schematic of a Sales Crediting Process
Cognizant 20-20 Insights
6Pharma Sales Crediting: Incentives for Accurate & Compliant Processes |
Sales Data
Quota Setting
Incentive
Compensation
Payments
Business Rules
and Requisite Files
(Customer Master,
Physician Profile)
Raw Sales
Credited Data
Final Sales
Credited Data
Market Definition
Zip-Territory Mapping,
Alignment Hierarchy
First Round of Validations
Apply Inclusion/Exclusion of HCPs
Territory-Aligned Sales
Figure 3
Key legal challenges include:
• Sales rep roster changes: Sales reps should get
credit for the territory they serve within a defined
period of time such as a quarter or half year. A
sales crediting process should be equipped to
handle frequent alignment hierarchy changes,
which could help a company avoid lawsuits by
their own reps who believe they have not been
paid fairly for the territory they served.
• Sales crediting rules definition: Sales credit-
ing rules should be easy to understand for sales
reps and clearly defined by a pharma company.
This can help a company avoid litigation when
sales reps know up front which HCPs are cred-
ited to them and which HCPs are blocked.
Sample Rules for the Sales Crediting
Process
Examplesofsomerulesthatcanbeappliedinapharma
company’ssalescreditingprocessareshowninFigure4.
When such rules are applied to a sales crediting
process, they affect the customer universe as
shown in 5, next page.
Sample Rules for Sales Crediting Process
Figure 4
Product Channel Business Rule Description of business rule Description
Prod A Retail Specialty Approved specialty for Prod A so that Inclusion
HCPs with these specialties were eligible.
Prod A Retail NRP PHA Inclusion Include nurse practitioners and Inclusion
pharma assistants.
Prod A Retail Customer Master Exclude HCPs that are not present Exclusion
in customer master.
Prod A Retail Dead Retired Exclude dead or retired HCPs. Exclusion
7. A sales crediting process should
be equipped to handle frequent
alignment hierarchy changes,
which could help a company
avoid lawsuits by their own reps
who believe they have not been
paid fairly for the territory they
served.
Cognizant 20-20 Insights
7Pharma Sales Crediting: Incentives for Accurate & Compliant Processes |
8. Cognizant 20-20 Insights
8Pharma Sales Crediting: Incentives for Accurate & Compliant Processes |
BEST PRACTICES FOR QUALITY
CHECKS
From our experience serving the pharma industry,
thefollowingpracticesmustbeestablishedtoensure
an efficient and compliant sales crediting process:
• Double counting of prescription sales – mea-
sured in TRx, NRx or any other unit – should
be avoided at the district or higher level.
• Enhanced checks should be put in place to
ensure certain inclusions/exclusions are applied:
»» Nurse practitioners or pharma assistants.
»» Dead or retired HCPs.
»» HCPs not present in customer master, etc.
• Compare sales of the current period (month,
quarter or semester) with the previous period
to identify mismatches in credited data. Sim-
ilarly, make additional checks against the
baseline. These mismatches may be caused
by a data vendor’s sales data restatements or
physician profile corrections, for example.
• Validate the list of eligible HCPs used in the
sales crediting of a given territory with the
call plan that the sales reps receive for this
territory. This validation will ensure reps get
credit only for those HCPs that they detail,
which ensures fairness in the process.
A sample checklist for ensuring the sales cred-
iting process has run successfully is shown in
Figure 6, next page.
How Sales Crediting Rules Affect the Customer Universe
Figure 5
Business Rules
IHCPs Initial Universe
of HCPs
100,000 250,000
80,231 178,863
79,119 174,391
78,987 172,968
75.626 161,065
73,722 156,305
71,107 153,768
65,030 151,575
63,622 149,055
55,441 127,103
Exclude HCPs Not Present
in Customer Master
Exclude Dead/Retired
Physicians
Exclude with Litigations
Against Them
Rule 4
Rule 5
Rule 6
Rule 7
Rule 8, Etc.
Initial HCP Initial TRx Sales
Eligible HCP List
9. Cognizant 20-20 Insights
9Pharma Sales Crediting: Incentives for Accurate & Compliant Processes |
Cognizant 20-20 Insights
LOOKING FORWARD
A sound sales crediting system is a mechanism
to maintain compliance and avoid legal issues. It
relieves leadership from worries related to com-
pliance by engraving proper checks into each
detail of a complex system. An efficient sales
crediting system will ensure timely delivery of
performance results for incentive compensation
processing.
Tracking the sales rep’s performance accurately is
the foundation for attributing value to his or her
contributions. It increases overall confidence in the
compensation methodology and motivates the field
to perform better. They will spend less time “chasing
the script” and will focus on driving sales. This, in
turn, will reduce the number of queries from sales
reps. It will assure them that the results of their hard
work – increasing awareness among HCPs, bringing
the right drug to the patient and boosting the com-
pany’s sales – are correctly captured and credited.
Sample Checklist for Sales Crediting Process
Figure 6
No. Name of the rule Description
1 Sales crediting rules. All business rules (i.e. inclusion/exclusion) are captured
in a proper sequence with filters applied.
2 Linking sales crediting rules to code. Business rules and all other data files are correctly
linked to sales crediting code.
3 Specialty compliance. Check for incorrect specialties that are blocked.
4 Prescriber block. Check for ineligible prescribers that are blocked.
5 Sales variance with previous month/ Check for absolute difference of sales between months/
quarter at geography level. quarters and investigate those differences.
6 Check against call plan. Validate whether all the HCPs present in the call plan of a
given territory are present as eligible HCPs for that territory.
10. Cognizant 20-20 Insights
10Pharma Sales Crediting: Incentives for Accurate & Compliant Processes |
Harsh Arora
Senior Associate, Life
Sciences Practice, Cognizant
Digital Business
Harsh Arora is a Senior Associate with the Life Sciences Prac-
tice within Cognizant Digital Business. He has nearly 10 years of
experience in incentive compensation and sales reporting and
is responsible for handling end-to-end incentive compensation
operations, stakeholder management, governance and change
management for several global pharmaceuticals companies. Harsh
has also worked on the credit risk portfolio in the banking domain
and has expertise in the retail domain as well. He earned his bache-
lor’s degree from IIT Bombay in mechanical engineering. Harsh can
be reached at Harsh.Arora2@cognizant.com | www.linkedin.com/
in/harsh-arora-6575542/.
ABOUT THE AUTHOR
FOOTNOTE
1 http://www.policymed.com/2013/02/hhs-oig-listing-of-pharmaceutical-and-device-corporate-integrity-agreements.html.
ACKNOWLEDGMENTS
The author would like to thank Devender Singh, a Principal within Cognizant Digital Business’s Life Sciences Practice, for his con-
tributions to this white paper.