Case study

Understanding schedule II drug procurement pathway, pricing and the impact of changing the National Drug Code (NDC) of a product

Client Situation

Our client is focused on acquiring prescription medicines across a range of therapeutic areas. They wanted to understand the decision-making and purchasing patterns of purchasers and managers/directors of pharmacies, with a focus on their familiarity with the procurement process

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Project Scope

    To gain a comprehensive understanding of the hospital drug procurement process for a schedule II drug in the USA by engaging US-based purchasers, procurement managers, and directors of pharmacies

Focus Markets

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Solutions

    We conducted extensive primary research in order to:

  • Understand the decision-making process related to a hospital's drug selection and procurement with regards to schedule II drugs
  • Determine the ability of participants to locate a rebranded product with a changed National Drug Code (NDC) in the system for placing an order
  • Understand factors influencing buyers' purchasing decisions and reimbursement practices with a focus on contract pricing, Group Purchasing Organization (GPO) negotiations, and payment structures
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Results

  • Successfully enabled our client to understand routine NDC changes, recommended effective communication strategies for managing change, and highlighted the preference for generic names over brand names at the top level of hospitals.
  • Refinement of the client's strategy based on a deeper understanding of purchasing methods, product selection factors, payment plans, and the prevalence of discounts in contracting agreements