Tuesday, June 15, 2010

My Best Report on Drug Wholesaling Ever

I am pleased to announce the availability of The 2010-11 Economic Report on Pharmaceutical Wholesalers, my brand-new report on the U.S. drug wholesaling industry. I’m offering 10% off the regular price if you order before June 30, 2010.

As the headline above says, I really do think that this is my best report on the drug wholesale industry ever. I’ve packed enough into the report to make it valuable whether you’re new to the industry or a grizzled veteran. I highlight a few unique elements below.

My target audience is diverse:
  • Manufacturers of pharmaceuticals and healthcare products (my primary consulting clients, BTW)
  • Wholesalers (not my clients)
  • Buyers and executives at pharmacies of all sizes
  • Investors in the public companies
  • Pharmacy Benefit Managers (PBMs)
  • Policy analysts
I have worked hard over the past few months to make The 2010-11 Economic Report on Pharmaceutical Wholesalers into a comprehensive reference. I hope you enjoy reading it as much as I enjoyed writing it!

What's in it for you? Well, if I did my job right, you’ll:
  • Increase your understanding of key industry trends, economic motivations, and wholesaler business strategies

  • Validate or challenge your assumptions about the risks and opportunities facing the pharmaceutical wholesale industry

  • Improve your ability to negotiate and/or collaborate successfully with pharmaceutical wholesalers
You can see the breadth and depth of content by reviewing the Table of Contents or List of Exhibits. One-quarter of the report is devoted to analyzing the financial and business strategies of the Big 3 wholesalers—AmerisourceBergen (NYSE:ABC), Cardinal Health (NYSE:CAH), and McKesson (NYSE:MCK).

In addition to covering the basics, I also delve into some little understood aspects of the wholesale industry, including:
  • Channels for Specialty Drugs—I devote multiple sections to the confusing and often overlapping channels to market for specialty drugs. I wrote this part of the report because I couldn’t locate a single resource covering this topic.

  • Fee-For-Service Agreements between wholesalers and manufacturers—Surprisingly little has been published about these agreements or how they work, so I fill in the gaps for you.

  • Why do large chains buy from wholesalers?—In theory, large pharmacy buyers with in-house supply chain capabilities could bypass drug wholesalers. I walk through the drug pricing complexities that keep wholesalers in the middle, albeit at very slim profit margins.

  • Role in the Pharmacy-PBM Relationship—Pharmacy Services Administrative Organizations (PSAOs) negotiate and administer contracts between PBMs and independent pharmacies. The biggest PSAOs are owned and operated by drug wholesalers. I tell you about these unexpected relationships.

  • Group Purchasing Organizations (GPOs)—The two largest GPOs for community-based oncology practices are now owned by two of the largest wholesalers. Gee, can you guess which wholesalers get selected as preferred providers by these GPOs?
True Drug Channels wonks will also appreciate the report's 89 endnotes. (Yes, there are really 89.) In keeping with the spirit of the blog, I include clickable weblinks to the primary sources whenever they are available.

Please feel free to email me if you have any questions about the report.

2 comments:

  1. Al GodleyJune 15, 2010

    Always a great read! I've sent notes to the few people I know that are still not followers of your blog (there are only a few)letting them know they need to read this report.

    I always work your blog into the conversation when talking to folks. If they don't read it tey ask me to send the link and they know someone that does read the blog. Most immediately start quoting the latest entry!

    Thanks for keeping us informed!

    ReplyDelete
  2. Well done Adam, and thank you. This is the encyclopedia for the pharmaceutical wholesaler industry. A necessary read for anyone in the industry.

    ReplyDelete

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