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Are Alternative Distribution Models a Viable Option for Pharma?

Are Alternative Distribution Models a Viable Option for Pharma?

The key questions and considerations for drug manufacturers pursuing an effective Alternative Distribution Model.

For pharmaceutical manufacturers, their default distribution model for launching a new drug generally involves signing a distribution services agreement (DSA) with the following wholesalersAmerisourceBergen (soon known as Cencora), Cardinal Health, and McKesson otherwise known as the 'Big 3'.

But manufacturers are increasingly asking if there are alternative distribution models (ADMs) as they consider the wholesalers’ financial effects on their gross-to-net calculations. An argument can be made that the answer to this question is “Yes, particularly for specialty pharmaceuticals with fewer target customers.” However, can an ADM meet the manufacturer's needs without adversely affecting patient needs?

Pharmaceutical Commerce engaged Rob Besse from Archbow Consulting to walk the industry through the three essential factors manufacturers must contemplate when considering an ADM.

Read Rob's article in Pharmaceutical Commerce and contact us if we can be of assistance in helping you resolve your distribution challenges. As a pharmaceutical consulting company, Archbow provides strategic guidance and tactical implementation support for various distribution areas, including wholesale, specialty distribution, and 3PL services.

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Archbow Consulting helps pharmaceutical and biotech companies in the USA and Europe reach their commercial goals with strategic and tactical approaches to distribution, pharmacy, and patient access. Archbow was founded by industry veterans to meet a need in the marketplace for consulting options that offer diverse real-world experience, are able to leverage deep connections across the industry, and can also provide actionable strategic guidance. We invite you to learn more about our team, services, and clients’ success, and connect with us via email, LinkedIn, or subscribe to this blog which you can do below.

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