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Tuesday, February 21, 2012

Selecting an Alternative Sampling Provider: Considerations for Brand Managers

Written by Michael Milunec, Director of Operations, QPharma 

As the industry evolves, pharmaceutical and life science product managers find themselves increasingly having to consider alternative sampling as a component of their marketing plans. It's usually a good fit for controlled substances and products with special handling considerations, but there are other good reasons to consider alternative sampling. For some companies, it's a marketing strategy that offers another opportunity to get a healthcare provider's attention. For others, it's a way of avoiding the accountability and compliance issues associated with requiring sales representatives to carry physical samples. Whatever the reason, it's important for brand managers to look for an alternative sampling partner that can meet their needs in a cost-effective and compliant manner — and that means asking the right questions.

How large is your pharmacy network?
An affiliation with a robust, nationwide network is important, simply because it translates to a better experience for the patient. Remember that with an alternative sampling program, patients are not receiving actual product samples; rather, they are receiving vouchers or co‐pay cards that they must redeem at a pharmacy. Whether that pharmacy is a major chain or a local drugstore, you want to ensure that your patients are able to receive your product regardless of where they go.

What is your average drug reimbursement rate?
The industry standard for determining drug reimbursement rates is currently driven by what is known as “Wholesale Acquisition Cost” (WAC). Desirable reimbursement rates tend to be between WAC+9 percent to WAC+10 percent. Better reimbursement rates can translate into cost savings for both drug makers and patients.

How extensive are your reporting capabilities?
Most vendors provide some level of online reporting, but few clients actually take the time to log on and generate reports. My clients like to have their reports pushed to them by FTP or encrypted e-mail. It gives them peace of mind to know that an account manager is reviewing their data and is available to point out trends and potential pitfalls. Most clients also appreciate a partner who has the ability to provide activity reports based on individual sales territories, and can generate reports that comply with federal and state reporting guidelines.

Can you provide client references?
When evaluating a potential alternative sampling partner, don't be shy about requesting to be put in touch with some of their current clients. A reputable, world‐class vendor should be able to provide a few contacts with confidence. Ask these references whether they like working with the company you're considering. Ask whether the company meets deadlines, whether they're knowledgeable about the regulations, and whether they're proactive in support of their clients’ goals and objectives.

By doing their homework, product managers can ensure that their alternative sampling programs are capably and professionally handled — with outstanding benefits for the company and the consumers they serve.