Princeton, N.J.-based CRO Covance has created a new service offering focused on providing its biopharmaceutical and medical device clients support to effectively manage contracts in managed markets.
Covance's managed markets services will help clients improve controls and management of contract terms and associated payments. It also will help biopharmaceutical and medical device clients increase market share by gaining better visibility into contract performance with managed care organizations, group purchasing organizations, federal and state programs and wholesalers.
The service targets a substantial need in the marketplace as chargebacks and rebates used in contracts account for as much as 20% of U.S. gross sales for biopharmaceutical and medical device companies (approximately $50 billion a year). Without the right controls and contracting processes in place, biopharmaceutical and medical device companies risk both revenue loss and potential penalties associated with a failure to comply with government regulations. It is estimated these companies currently lose up to 4.4% of U.S. revenue per year, or $11 billion, due to insufficient processes and contract management systems, at a time when the economic environment for the sale of drugs and devices has never been more challenging.
"These contracts have become increasingly complex over the past several years and the acquisition and maintenance of the talent and technical infrastructure required to set up, maintain and manage contracts without revenue leakage is a significant struggle for our clients," said Marc Ginsky, vice president and general manager, Covance market access services.
"Covance's managed markets services can transform a labor-intensive, time-consuming and costly process into a far simpler and more efficient service platform for our clients," said Steve Medina, vice president, managed markets services.
Covance's managed markets services will be led by Medina, who joined Covance in July 2012 from HighPoint Solutions, where he was vice president, managed service. Previously, Medina was the practice leader of the BTS Delivery Services Organization within IMS Health, the delivery services organization responsible for providing specialized solutions and ongoing services to life sciences companies. His has 23 years of consulting experience, focused on healthcare product manufacturing with specialties in ongoing service solutions, account management and systems implementation.