Specialty Generics Competing With Orphan Brands

IndustryPharmaceutical Manufacturer
ProblemA pharmaceutical manufacturer client was preparing for approval and first to market launch of a specialty generic drug for a small, sensitive patient population. The brand manufacturer for this drug had a limited distribution network of specialty pharmacies. It was unknown whether the brand manufacturer would continue to compete in this space post Loss of Exclusivity (LOE) by offering discounts and rebates to the contracted specialty pharmacies and/or launch their own authorized generic. The client needed to understand how the brand manufacturer marketing tactics could impact their own pricing, support, and contracting strategies.
PHSI SolutionPHSI developed several different strategies and “what if” scenarios for the client to consider. These strategies were based on the number of generic competitors and how the brand manufacturer would attempt to compete post LOE with discounts and rebates to the specialty pharmacies. PHSI performed additional analysis and developed correlating strategies depending on the client’s decision of how they would contract with specialty pharmacies. Some options included contracting with specialty pharmacies owned by PBMs, independent specialty pharmacies, or MCOs whose specialty pharmacies never had access to the brand product.
ResultsPHSI provided the forecasted scenarios and strategies to the client, which gave them insight to make informed decisions when finalizing their marketing and pricing strategies.