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.
IntegriChain, an information service provider to the pharmaceutical industry, has recently announced IntegriChain MRI(TM): Measurement of Retail Inventory; an analytic service which has been specifically designed to provide a highly accurate measurement of retail inventory capable of delivering calculations to +/- 2 days on hand (DOH). The MRI(TM) analytical service is an extension of the company's flagship Enriched Channel Sales(TM) information service which provides a highly accurate (>99%) view into downstream sales of pharmaceutical products into over 300,000 dispensing locations in the US, including all retail pharmacies, mass merchants, hospitals, clinics, long-term care, federal facilities, etc. The company has developed extensive intelligence on retail, wholesale and institution inventory patterns, and through its proprietary analytics provides an unparalleled level of transparency into inventory movement in the downstream market. "We see this as a watershed tool for financial reporting, planning and analysis functions within all US pharmaceutical manufacturers," states Kevin Leininger, chief executive of IntegriChain. "Most pharma companies are left 'in the dark' relative to their total pipeline measures, and we believe our solution offers them a high-confidence measure that they have not had heretofore."
The MRI(TM) service is available on a brand-by-brand basis immediately from IntegriChain and requires a subscription to Enriched Channel Sales(TM). The service is delivered via a standard Microsoft(R) interface and is offered on either monthly or weekly frequency intervals.
IntegriChain, Inc. is an information services company which provides data collection, integration, enrichment, analysis and reporting of sales and inventory activity exclusively for the pharmaceutical industry. IntegriChain enables manufacturers to improve sales performance and total pipeline measurement by maximizing transparency and accountability in the down-stream supply chain. IntegriChain's Enriched Channel Sales(TM) and advanced analytics are transforming the role of channel data within key pharmaceutical application areas including new product launch, finance, sales forecasting and demand analysis.
|SOURCE IntegriChain, Inc.|
Copyright©2009 PR Newswire.
All rights reserved