Pharmaceutical Supply chain strategies: Reassessing product distribution to cut costs and improve supply chain management

Table of Contents

• CHAPTER 1 EXECUTIVE SUMMARY
  • Scope of the report
  • Key findings
• CHAPTER 2 SUPPLY CHAIN OVERVIEW
  • Why worry about the drug supply chain?
  • The US Supply Chain
    • Manufacturers wield most power in setting drug price in the US
    • Wholesalers are the primary buyers for manufacturers
    • Pharmacies are at the interface of the supply chain and patient
    • Pharmacy Benefits Managers - a crucial link in the US supply chain
  • The UK Supply Chain
    • Drug list price is regulated by the PPRS
    • Wholesalers compete to acquire pharmacist contracts
    • The government reimburses pharmacists at list price
  • Differences in drug distribution between the US and EU
• CHAPTER 3 DRUG DIVERSION
  • The grey market in the US
    • The illegal importation of drugs into the US
  • Parallel trade in Europe
    • Counterfeits enter UK via parallel trade channels
    • EU focus on parallel trade and counterfeit drug link
  • Strategies to tackle diversion
    • Greater regulation of the pharmaceutical supply chain
      • e-pedigree roll out in 2009 in California
      • Drug supply restrictions are effective but can lead to domestic shortfalls
    • Dual pricing initiatives
    • Tighter supply chains - direct to pharmacy distribution is gaining traction
      • GSK sets the ball rolling in the UK
      • Pfizer goes further by introducing exclusive distribution
      • Sanofi-Aventis and AstraZeneca introduce DTP in the UK
      • Implications of the DTP scheme for the UK
• CHAPTER 4 THE SUPPLY CHAIN GOING FORWARD
  • Market expansion
    • Intellectual property and European Union expansion
    • Drug registration
    • Parallel trade in the European Union
    • Parallel trade implications beyond the EU
    • Manufacture outsourcing
    • More complex drugs with more complex distribution needs
  • The trend towards consolidation
    • Wholesale industry under increasing pressure
    • Infiltration of the PBM business
      • Innovators fail to make PBM acquisitions a success
      • CVS and Caremark merger
      • Wal-Mart' s foray into pharmacy benefit management
    • Growth in private label brands
    • Relaxation in pharmacy outlet laws
  • Differences between US versus EU distribution
    • US retailers leave wholesalers with little net margin
    • US manufacturers subsidize distribution
    • European retailers have less power
• CHAPTER 5 BIBLIOGRAPHY
  • Publications and online articles
  • Datamonitor resources
• APPENDIX
  • Abbreviations
  • Exchange rates
  • List of Tables
    • Table 1: Exchange rates, 2007
  • List of Figures
    • Figure 1: Drug and monetary flow in the US supply chain
    • Figure 2: The UK pharmaceutical supply chain
    • Figure 3: UK retail pharmacies, 2006
    • Figure 4: US pharmaceutical grey market
    • Figure 5: Drivers and strategies to tackle, drug diversion
    • Figure 6: UK pharmaceutical distribution channels
    • Figure 7: Expansion of wholesaler services
    • Figure 8: Factors impacting on the future drug supply chain
    • Figure 9: Consolidation within the supply chain