Issue link: http://osercommunicationsgroup.uberflip.com/i/310749
C h a i n D ru g s to re D a i l y 1 7 M o n d a y, A p ri l 2 8 , 2 0 1 4 INCREASING THE SPECIALTY PHARMACY PIPELINE The pipeline of new drugs is heavily weighted in the category of "Specialty Pharmaceuticals." By 2018, it is estimat- ed that more than 50 percent of the drug spend in the U.S. will be on specialty drugs. The trend is driven primary by emerging technology in biologic drug manufacturing, longer protection of patents for biologics and therapies that are more specific to the patient genetic makeup. As pharmacies and manufactur- ers explore the opportunities these new, highly complex therapies present for them and their patients, they must recog- nize and consider carefully all of the areas that must be addressed. The economics of retail pharmacies have been highly challenging in recent years. Loss of patent protection for many of the biggest-selling brand drugs has had a dramatic impact on top-line revenue. Historically, expiring patents would have been great news for retailers as generic drugs have long driven profits. However, the increase in discount and free generic programs and aggressive MAC pricing, has eroded profitability. Specialty pharmacy presents oppor- tunity for diversification of business. But, it also presents challenges for tradi- tional retailers and manufacturers. Many of the new drugs coming to market are released in a "limited drug distribution network," available only to a select few specialty pharmacies, and many health plans and other payers have created lim- ited specialty pharmacy networks to help control specialty drug spend. The benefit coverage of specialty drugs also can be much more complex than traditional "small molecule" drugs. Payers expect specialty pharmacy providers to help manage utilization of these drugs to minimize waste and ensure patients are benefiting from these expen- sive therapies. Coverage for these drugs can be provided from the patient's medical benefit rather than the pharmacy ben- efit, necessitating investiga- tions regarding benefits as well as billing and reconcilia- tion challenges. With benefit design, and new specialty tiers, come with a much high- er patient co-pay or co-insur- ance, which requires pharmacies to be able to coordinate across multiple bene- fits including patient assistance and co- pay assistance programs. The complexity of the disease state, intense Risk Evaluation Mitigation Strategies programs, unique drug admin- istration requirements, complex therapy regimens and drug toxicities have led pharmacy providers to implement com- plicated programs to support patients. These patient support programs require extensive reporting back to the payer, the manufacturer and potentially FDA. Retail pharmacies are not alone in their quest to adjust to the requirements of specialty drugs. Pharmaceutical manufacturers also face challenges. In large part due to the high cost of these drugs, pharma- ceutical manufacturers look to specialty providers to help patients get on therapy, stay on therapy and ulti- mately have successful clin- ical outcomes from the ther- apy. The manufacturer also needs a specialty pharmacy that can control inventory of these high-cost drugs, often used to treat small patient populations. Finally, they are looking for a specialty pharmacy committed to intense training of their clinical and support teams to help patients and prescribers manage these complex therapies. All parties involved will only benefit from the promise of these new drugs if all areas are explored and addressed. To learn more about how Inmar is help- ing pharmacies in the area of specialty pharmacy, stop by location #334 at the NACDS Annual Meeting, call 866-440- 6917 or email solutions@inmar.com. You can also visit www.inmar.com. IMS CONSULTATIVE ENGAGEMENT UNCOVERS STRATEGIC OPPORTUNITIES Healthcare information company IMS Health conducted a needs assessment with a major drug store chain, and as a result, is developing new insights to sup- port the chain's growth and profitability. The solutions will help the company coordinate customer strategies and pro- grams, as well as manage performance at a local market level. "We conducted in-depth discussions geared toward understanding the issues keeping them up at night," said Jim Hunter, V.P., Supplier Services, IMS. "This went beyond just putting their mar- ket information to better use. It was about working together to uncover any internal roadblocks or information gaps that were preventing the company from achieving its marketing and sales objectives." A team of IMS consultants con- ducted hour-long discussions with near- ly 30 company executives across mar- keting, strategic planning, purchasing, finance and technology over three con- secutive days. Together, the organiza- tion's most pressing business concerns were uncovered. Understanding the 'Why' and Beyond Through conversations about objectives, priorities, obstacles, gaps and current resources and services, the engagement uncovered the need for: addressing the growing problem of information over- load and data interpretation; understanding the 'why' behind market trends; and implementing operational improvements around infor- mation management. The ultimate call to action was for more actionable insights to drive per- formance. It's no longer enough to know that a particular store in Nashville is not performing as well as a store in Milwaukee. The company needs to understand why. For example: why are we not growing as fast as the market?; why is one store performing better than another?; why are we losing customers from certain segments?; and why was our program effective (or ineffective)? "One of the primary issues for many pharmacies is that the front and back of the store continue to operate separately," Hunter explained. "They need consumer purchasing insights to help ensure that customers who buy from the front of the store fill their scripts at the same time – and vice versa." Another major need is for insights to be defined by meaningful local market areas in order to truly understand market shares and customer loyalty patterns. These insights will enable the retailer to determine where new stores should be located and how to optimally promote in different markets. "The assessment was eye-opening for us and the retailer," said Hossam Sadek, V.P., Global Supplier Services, IMS. "We're looking forward to provid- ing a new portfolio of value-added serv- ices that will further benefit our suppli- ers." Deeper knowledge of customers and the local markets – that's today's strategic advantage. For more information on needs assess- ment, contact IMS Health at 973-257- 7135, or jure@us.imshealth.com. Stop by Casita #7171 at the show.