Consistent price increases have long been a staple of commercial strategy for pharmaceutical manufacturers. From this uplift in topline revenue, more sizable discounts can be provided to industry middlemen, like pharmacy benefit managers (PBMs), in order to secure more favorable formulary positioning.
Rather than continue forward with traditional market access strategies, manufacturers should consider revenue management in new ways. Instead of simply confining gross-to-net activity to the pragmatic exercises of forecasting and accrual, manufacturers can expand its scope to include a strategic analysis of how liabilities can be prospectively reduced. In broadening the focus of financial planning from the perfunctory to the proactive, expenses can be viewed more as mitigatable variables and less as immutable assets. Accounting then becomes a valuable tool in the effort to reduce revenue leakage.
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Robert Blank is a managing consultant at EVERSANA, working extensively in revenue management software solutions for the pharmaceutical and medical device industries. His expertise includes Medicaid and Managed Care rebates, chargebacks, and membership management.…