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IntegriChain Announces Measurement of Retail Inventory(TM) (MRI) Analytic
Date:4/2/2009

New analytic offering provides pharmaceutical manufacturers with a highly reliable measure of inventory levels in the retail channel.

PRINCETON, N.J., April 2 /PRNewswire/ -- US Pharmaceutical manufacturers routinely struggle to accurately quantify the amount of product in the retail channel. This measurement affects a number of key aspects of financial reporting, such as: revenue recognition and returns accrual calculations, SOX compliance, forecasting and other critical financial planning functions. Unfortunately, the pharmaceutical manufacturer has very little visibility to where actual inventory levels are at any specific time. This lack of visibility to retail inventory levels forces pharmaceutical manufacturers to provide "best estimates" or "back of the envelope" calculations which cause significant angst with financial analysts and investors.

Recent industry trends indicate that retail "days on hand" inventories vary dramatically month-to-month and by individual retailer; exposing these critical financial computations to increased levels of potential error. Compounding this problem is the fact that many blockbuster drugs are coming off patent in the next few years, and pharmaceutical manufacturers are looking for ways to more accurately accrue for returns and provide auditable financial reserves for a new economy in the US pharmaceutical market.

Traditionally, most pharmaceutical manufacturers have relied upon doctor prescribing behavior data to determine demand, and have backed into retail inventories from this data. However, a growing number of PBMs are withholding their prescription information from vendors that estimate demand, and an increasing number of states are pursuing legislation to block prescription reporting. As national prescription demand data deteriorates and retail volatility increases, manufacturers' current approach to total pipeline measurement is becoming unsustainable.


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SOURCE IntegriChain, Inc.
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