In the current pharmaceutical landscape, more than 80% of manufacturers still rely on manual processes to accrue, forecast, and report their gross-to-net (GTN) deductions (Figure 1). This is primarily because of their hesitancy to rock the boat or take on a system revamp spanning multiple teams. However, in the era of big data and technological enhancements, manual processes cannot be relied on forever. Data sets are growing bigger by the day, while teams are expanding and working remotely worldwide. All of this and we have yet to mention the ever-growing GTN bubble and the importance of accurate financial reporting. So, what are the 5 benefits of bringing your GTN into the digital era and gaining true GTN optimization?

Figure 1:A graph showing the percentage of manufacturers utilizing digital transformation in pharma for GTN processes versus those who are not
Figure 1

Seamless, automated data integration

With data coming from different source systems in varying formats, manual intake, and standardization is a difficult task. A GTN system can automatically ingest data from multiple sources into the application where it is summarized and presented to the users for quick and easy insights – raising the integrity of your data while minimizing manual errors. When utilizing cloud-based technology, growing data volumes can be handled proactively and effectively.

An accurate and scalable GTN management process

GTN accrual management and forecasting responsibilities fall on different teams at different companies. Based on information surveyed by IntegriChain’s Revenue Analytics Collaborative, many manufacturers rely on their accounting team for accrual management, while the other half rely on finance and operations teams. For GTN forecasting, this split is about 60/40 for accounting teams (Figure 2). This means that a variety of users and skill sets are working on GTN accrual and forecast management. A centralized GTN system allows multiple users spanning different departments (and countries) the ability to collaborate on a single source of truth in real-time. Users define their accrual and forecast methodologies once, then the process is handled by the system and easily repeatable – even with new team members.

Figure 2:  Pharma GTN forecasting and accrual management responsibility
Figure 2

Audit assurance

GTN systems can be Sarbanes-Oxley-compliant, with SOC1 and SOC2 reports. Additionally, a system can also be backed by a team of seasoned experts with experience in many different scenarios with numerous different auditors.

One version of the truth, on one platform

A GTN cloud application can be integrated into a suite of contracting and pricing, and revenue management applications allowing manufacturers to depend on one central platform to support their business needs. Providing total control and visibility over their compliance, contracting, revenue analytics, and more. Digital transformation enables pharma manufacturers to make better business and contracting decisions based on real net-sale impact analysis.

True GTN optimization

We have heard through multiple GTN system implementations that you don’t know what’s broken until you look under the hood. Identifying areas for improvement occurs with a commitment to undertaking current concerns and turning those into optimized solutions. It takes a strong, forward-looking group to take on the challenge of pharma digital transformation. Procedures that are not up to industry standards need to be identified and collaboratively tackled by the business and vendor teams to create the ideal process. 

As more manufacturers begin their digital transformation in the pharmaceutical industry, the need for an accurate and dependable GTN system backed by experts globally will be more important than ever. Utilizing a GTN system such as IntegriChain’s ICyte Platform gives pharma manufacturers increased visibility and insight into the changing pharma landscape with confidence.

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About the Author

Manli Gomari

Manli Gomari

Senior Manager, Operational Consulting

Manli is a Senior Manager on the Operational Consulting team at IntegriChain, focusing on gross-to-net. He has spent his entire career in the pharmaceutical industry supporting manufacturers with commercialization, market access, contracting and pricing, gross-to-net, and compliance. Manli’s previous experience as a management consultant includes leading teams on extensive revenue management and GTN software implementations at big pharma manufacturers. As well as assessing commercial and regulatory operations for business optimization. At IntegriChain, Manli is relied on to assist manufacturers with deriving insight from their data and providing best practice recommendations on GTN design, methodologies, and analytics.