As we conclude our PCC series after exploring Pricing as the strategic lever and Contracting as the bridge, itโs time to examine Channel strategy. These decisions are where PCC plans are put into practice, and mistakes here can unravel an entire strategy. Channel strategy isnโt just logistics, itโs how your therapy moves from concept to delivering on your commitment to patient access, commercial efficiency, and strategic differentiation.
Several unique contributors, including your warehouse, 3PL, specialty distributors, wholesalers, pharmacies, couriers, GPOs, clinics and physicians comprise the channel and they need to be linked efficiently to optimize your commercial success and ease the patient journey.ย Carefully selecting and aligning partners based on a medicine attributes, capabilities and requirements is complex. Here are some of the key considerations:
๐๐ก๐๐ซ๐๐ฉ๐๐ฎ๐ญ๐ข๐ ๐๐ซ๐๐ ๐๐ง๐ ๐๐๐๐ข๐๐ข๐ง๐ ๐๐จ๐ฆ๐ฉ๐ฅ๐๐ฑ๐ข๐ญ๐ฒ
–ย Specialty medicines often require limited distribution models due to site of care, handling, administration and/or reimbursement complexities while other medicines with a limited time window to treat, retail access and less handling complexity may require broader models
–ย Cold-chain medicines require specialized capabilities to maintain integrity
–ย Controlled substances or REMs must comply with FDA and/or global regulations.
๐๐๐ซ๐ค๐๐ญ ๐๐๐๐๐ฌ ๐๐ฌ๐ฌ๐๐ฌ๐ฌ๐ฆ๐๐ง๐ญ
–ย Understand the demographics & distribution of patients. Rural markets may rely on home delivery, while more urban markets may prioritize retail or acute sites of care
– Consider provider acquisition preferences, economics and GPO relationships
–ย Evaluate Payer/PBM policies that may steer patients to preferred channels
–ย Analyze competitorsโ channel strategies to identify gaps and/or opportunities
๐๐ก๐๐ง๐ง๐๐ฅ ๐๐๐๐ข๐๐ข๐๐ง๐๐ฒ, ๐
๐๐ ๐๐ญ๐ซ๐ฎ๐๐ญ๐ฎ๐ซ๐๐ฌ ๐๐ง๐ ๐๐๐ฏ๐๐ง๐ฎ๐ ๐๐ฆ๐ฉ๐๐๐ญ
–ย Evaluate each channel cost against net revenue to optimize access & profitability
– Carefully model bona fide service fee and price concession structures for accurate grossโtoโnet forecasts, ASP modeling and government price reporting
– Ensure flexibility to adapt to market changes, such as shifts in demand, new regulations, and/or line extensions
๐๐ก๐๐ง๐ง๐๐ฅ ๐ฆ๐ข๐ฌ๐๐ฅ๐ข๐ ๐ง๐ฆ๐๐ง๐ญ ๐๐๐ง ๐ซ๐๐ฌ๐ฎ๐ฅ๐ญ ๐ข๐ง:
–ย Suboptimal net revenue & margin erosion
–ย Access bottlenecks
–ย Compliance missteps in price reporting and/or contract deliverables
–ย Disconnects between strategy and execution
๐
๐ข๐ง๐๐ฅ ๐๐๐ค๐๐๐ฐ๐๐ฒ: When thoughtfully integrated, your Channel strategy can provide competitive advantage, ensure compliance and enhance patient access. Execute with intention so that your therapy is poised to reach its maximum potential.ย Contact us at info@A3Access.com for help with your PCC strategy.