The Value of 3PLs

Highlighting Pharmaceutical Commerce’s inaugural issue of the new year is our cover story that captures a roundtable-type discussion where executives with third-party logistics providers, otherwise known as 3PLs, present their views on the new dynamics and future trends influencing this essential link of the supply chain. Responsible for the movement and distribution of pharmaceutical products, there are several important areas these experts are focused on heading into 2024. One is what Jim Saponaro, president of life sciences, DHL Supply Chain, describes to Editor Nicholas Saraceno as a “need to have more inventory placed in greater proximity to patient populations.” This emphasis, he points out, has resulted in the rising number of multi-client facilities.

The "inventory" Saponaro refers to is the supply of prescription drugs, where sales are estimated to total $1.6 trillion by 2028, according to various forecasts. Speaking of which, in an outlook glance at current and prospective Rx drug outputs, Saraceno outlines the factors, past and to come, that have and will contribute to the trajectory of this market, including the COVID-19 pandemic.

Rounding out our feature coverage this month is an update on the 340B drug pricing program, where Micah Litow of Kalderos and Rob Philo of Philanthros Consulting describe its latest impact on commercial contracts, including how duplicate rebates have caused revenue leakage for manufacturers. Understanding drug pricing—and the associated agreements—is no simple feat, and a reason why Accenture’s Abhishek Sinha, in a guest piece, suggests that a balancing act is necessary, especially if the goals of profitability and drug access are top of mind.

When it comes to the Medicare Part D part of the equation, the PAN Foundation’s Amy Niles notes that the Inflation Reduction Act (IRA) has helped bring much-needed change, with the introduction of new reform known as the federal Low-Income Subsidy, or “Extra Help” program, which has been in effect as of Jan. 1. Essentially, Niles says, this program signifies that “more patients who struggle to afford the healthcare costs related to their Rx drugs will benefit.”

Meanwhile, in his latest “Commercialization Corner” installment, Bill Roth of IntegriChain continues his “Who Moved My Prescription?” series, this month providing an analysis of the two main new pharmacy models, along with industry perspectives of each.

There is plenty of content to sift through, so please enjoy. And as always, we look forward to receiving your thoughts on how we can continue to improve your viewing experience.

Thanks for reading.

— Mike Hennessy Jr., President and CEO, MJH Life Sciences