Semiannual update includes better revenue forecasting and state reporting
Model N, which more or less invented an automated revenue-management solution for pharma and high tech industries, recently announced the semiannual update of its flagship product, the Revenue Cloud. Enhanced features include better analysis and forecasting of loss-of-exclusivity events for branded products, and updated and more comprehensive tracking of US state transparency rules for Medicaid and related public spending on drugs. A growing number of states now require pharma companies to report pricing decisions and rebate policies in order to justify state reimbursements.
Suresh Kannan, Model N chief product officer, notes that Revenue Cloud has utility for pharma and med device suppliers both to properly add up revenue from product sales and to maintain compliance with federal and state reporting rules. The cloud-based solution is also used internationally to analyze reference-pricing scenarios, where the order of product introductions across national borders can affect pricing decisions.
Looking ahead, Kannan says the company is getting ready for the industry impact of the 2022 Inflation Reduction Act, which will enable CMS to negotiate drug prices on many commercial products starting in the fall of 2025; however, actual regulations from CMS have yet to be issued. Rebates tied to price increases above the rate of annual inflation will be another industry burden. “We handle the impact of many types of rebate programs, and we will be ready to help our clients with this one,” he says.