Channel Surfing: Creating an Intentional Channel Strategy

January 15, 2018

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Just like those circuit diagrams from your high-school physics days, distribution channels for specialty pharmaceuticals can get complicated. An intentional channel strategy can help you eliminate bottlenecks and maximize market opportunities. Here’s what we mean: 


Invest in your distributors
: It wasn’t long ago that manufacturers relied almost entirely on national pharmaceutical wholesalers to manage distribution. In recent years, specialty distributors, whose expertise lies in distributing niche products, have joined the fray. If you deal with such distributors, they are likely managing a large share of your business, so it’s worth investing the time to create fair agreements with them. While open, exclusive, and managed distribution all have their pros and cons, you need to ensure your distribution agreements don’t slice the financial pie too thinly.


Understand your distribution agreements
: Your distribution agreements could affect patient access. For example, a private payer may have set up a preferred pharmacy network (PPN) that compels patients to obtain your product from pharmacies within a specified network – which could work against your intended distribution strategy. An understanding of your distribution options can help you avoid such obstacles and, better yet, generate efficiencies to create market opportunities.


Create a strategy for hospital distribution
: You can’t ignore distribution to hospitals – and the many strategies available to navigate this complex system. Even if your product serves a largely outpatient population, some eligible patients may be hospitalized. With hospital budgets under perpetual strain, markups from distributors could lead some hospitals to pass on your product (and order a competitor product instead). Procurement legislation, regulations and group procurement organizations, which vary from province to province, should also guide your hospital distribution strategy and set-up.


Think beyond the pharmacy
: Consider what additional support your medication requires for patients beyond distribution to pharmacies, such as nursing support, injection training and infusion services. Factoring in the uniqueness of your drug, patient needs, and available options will ensure your channel strategy is set up for success – right down to the patient.


As a veteran in the specialty distribution space, 20Sense can help. We can put your channel strategy under a microscope and identify opportunities for simplification, optimization and fairer distribution agreements—fairer not just to you, but fairer to the patient who needs your medication.


Want to get more out of your channel strategy opportunities? Let’s talk. 

An intentional channel strategy can help you deliver products to patients more efficiently, contain costs and maximize opportunities.

Get in touch with us to learn more about:

  • How to assess your current distribution architecture

  • How to develop efficient channel strategies for existing and pipeline products

  • How to navigate the hospital landscape, provincial variations, and procurement practices

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Optimize Your Operations: Take your PSP to the Next Level

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The Hidden Value of Patient Support Programs