Specialty Distribution Model Development

Specialty-Distribution
CLIENT: A multinational pharmaceutical manufacturer interested in developing a distribution strategy for two specialty products in different stages of their lifecycle.
BUSINESS QUESTION: What distribution strategy will allow our client to optimize specialty distribution in light of product needs, internal capabilities, and existing vendor relationships?
OUR APPROACH:
  • ISA worked closely with the client to gain a deep understanding of brand needs (clinical and economic), internal capabilities, current processes, and existing vendor relationships
  • Primary research was conducted with executives of specialty pharmacy groups, HUB vendors, wholesalers, specialty distributors, and third party logistics companies, to assess:
    • Potential alignment of brand needs (e.g. reduction in patient OOP, improvement in compliance & persistency, reduction in practice administrative burden, capture of brand specific data) and vendor offerings by Specialty Pharmacy Business model (e.g. PBM-owned, Payer-affiliated, High-touch)
    • Successes and challenges of analogue and competitor distribution strategies
    • ISA conducted a quantitative and qualitative impact framework, estimating clinical and financial impact of adding specific vendor offerings by brand
    • An assessment of fair market value across vendor services was performed, proving to be a critical component of our teams tactical recommendations
RESULT: The client followed ISA’s strategic recommendation and engaged with the ISA team, as part of a follow-on engagement, to support implementation (e.g. contracting, data capture processes). When sales exceeded market expectations, the launch brand’s distribution strategy was later recognized as a core contributing factor based on customer feedback regarding the ease of procurement versus competitors.