Eliminate the Risk in Calculating Gross-to-Net Reserves

Are you finding that you have too much or too little capital reserved for product returns and rebates? Are you seeing trends in your forecasting team’s calculations of retail inventory that don’t make sense? Are you getting any pressure from audit to justify the gross-to-net reserves?

Challenges for Life Sciences Suppliers

From the very top, life sciences manufacturers face the risk of not hitting gross and net sales guidance and forecasts. Perhaps there is too much or too little capital reserved for product returns and rebates, especially during launch and loss of exclusivity (LOE), or inventory roll forwards, often estimated or built on anecdotal or incomplete data, might not appear believable.

Retail inventories are a critical component to every gross-to-net accounting system, but most manufacturers lose visibility into their inventory exposure and estimates result in gross overstatements or understatements of pipeline liabilities.

IntegriChain Delivers

IntegriChain leverages advanced modeling to support more accurate gross-to-net forecasts. Widely accepted and validated by the audit community and leading finance teams, IntegriChain reports 100% inventory in the downstream channel, even in stores and distribution centers that don’t report their inventories as well as morgues. IntegriChain’s real-time total pipeline inventory visibility even includes stores and distribution centers that do not report their inventories and improves revenue predictability.

With IntegriChain, you can:

  • Improve your methodologies for setting gross-to-net reserves: returns, commercial payer, Medicaid, Medicare
  • Know exactly how much inventory is in the downstream channel post launch and at LOE with actual data for 90% of the retail channel
  • Benchmark against analog data on similar products
  • Utilize actual demand, not projected roll forwards, from a much larger portion of retail pharmacies
  • Feel confident that auditors have already approved the new data source as the best possible from multiple companies similar to yours

Results to Bank on

The gross-to-net team at one manufacturer avoided a $50 million reserve mistake that would have occurred using the methodology prior to IntegriChain.

Another manufacturer increased confident in the total pipeline inventory number, allowing leadership to reduce the returns/rebates reserve by more than $60 million.


Learn more:

Contact us today to learn more about how IntegriChain can improve the accuracy of your gross and net sales forecasts: 609.806.5005