Proceed with Caution
January 30, 2012
It’s been an interesting week for
pharmacy.
Pfizer has been attracting
interest through a discount
offering for Pfizer branded
generics and its atorvastatin
product, Lipitor.
Many have commented that the
deal sounds like a good one.
That may well be true.
However, having done some
analysis, I make several
observations.
The deal appears to improve for
those prepared to lock in for a
longer term or commit to certain
levels of substitution.
It also reveals how Pfizer intends
to treat accrued Lipitor rebates –
redeemable at a percentage,
depending on the length of time
you commit to selling Pfizer
products.
I urge you to consider this offer
very carefully.
We don’t yet know what the
competitive offers will be – but
you can rest assured similarly
attractive deals will be offered in
due course.
Furthermore, I suspect that if
you’re able to secure discounts of
80-90% on atorvastatin, and if
you achieve a fifty-fifty
substitution rate, it’s likely the
profitability of your store will
offset the ongoing Pfizer discount
and rebate.
My advice is to understand the
Pfizer offer in great detail.
A thorough negotiation process
and full analysis of the
alternatives will ultimately result
in a better outcome for you and
your business.
Bruce Annabel, one of Australia’s
leading
authorities on the
business aspects
of community
pharmacy
management.
The above article was sent to subscribers in Pharmacy Daily's issue from 30 Jan 12To see the full newsletter, see the embedded issue below or CLICK HERE to download Pharmacy Daily from 30 Jan 12
