Drug Wholesaling Moves to Fee for Service: Observations and Implications

Topics:
Pharmeceuticals
Tags:
Drug Company,
Manufacturing,
Pembroke Consulting Inc.,
Wholesaler
Source:
Pembroke Consulting

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Overview: There has been much movement by drug companies in altering wholesaler buying patterns through various inventory agreements, with a noticeable majority already having some agreement in place. There has been real movement by drug manufacturers to change the profit models of their wholesalers through a de-emphasis on channel incentives. The majority of larger manufacturers have moved in that direction. The traditional wholesaler compensation model revolved around the distributor being paid both by customers and by manufacturers through channel incentives (e.g., discounts, rebates, dating).

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Format: PDF | Size: 118KB | Date: Jan 2004 | Pages: 19

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