Helping Manufacturers Better Manage Price


In this Pharmaceutical Commerce video interview, Blake Powers, CEO of Medigi, explains how digital formats help manufacturers better manage price based on real-time data, along with the impact of NDC-specific price dexterity.

PC: With pharmacies being under pressure to lower drug-acquisition costs, how can digital formats help manufacturers better manage price based on real-time data?

Powers: I'll start from really the pharmacy side. So pharmacy departments, whether you're a retailer or at a big integrated delivery network, they're responsible for their own P&L—their profit and loss statement—and most are leveraging strategies with revenue cycle management and reimbursement strategies, but now they're looking to the other side of the equation in terms of, what can I do from a non-labor perspective that's going to help me with my cost? And that's drug acquisition cost management. So there's definitely the pressure from the site of care perspective and pharmacy perspective to see what are some go-get goals for 2024, or the next fiscal year.

Now, from the lens of somebody in a trade function role at a pharma manufacturer—and you're maybe selling injectables into a hospital or maybe a new biosimilar has just been released. Chances are, you're probably choking on the price tags of your distribution fees, and you're concerned whether or not you're going to be able to land at a competitive price for each and every hospital, or retail pharmacy, and that's where having NDC-specific price dexterity via these digital distribution kind of models and platforms, really puts manufacturers in a better position to be nimble, to adjust when necessary, and really stay competitive. And I think, all-in-all, the theme of the piece is: doesn't that really help with the supply chain resiliency, if we have an atmosphere and environment where more and more pharma companies feel like they can compete in the space, not not just with price, but also with levels of service, with reliability, and the quality of the product? I

PC: What is the likelihood of NDC-specific price dexterity via these digital distribution models and platforms taking effect?

Powers: I'm already seeing some success with my platform, Medigi, so it's having success with certain product archetypes, particularly ones that are going direct. You have generics, you have biosimilars, and specialty light product archetypes that are already trending direct, and especially when manufacturers think of it from an NDC specific mindset; it may not be applicable to their full portfolio, but there's probably certain products where they're wanting additional pull through, they're wanting increased market penetration, and they're trying to consider different avenues and direct product pathways for providers to have an optimal user experience when it comes to sourcing their treatments. We're already seeing signs of evidence that it is working, so it'll be interesting to see to what extent it's adopted in the space.

Recent Videos
© 2024 MJH Life Sciences

All rights reserved.