Connected commercial planning using Anaplan: Gross-to-Net (GTN)

Background

Gross-to-net adjustments have doubled in the past seven years and are squeezing profit margins as distance grows between drug list prices and their net prices after rebates and other reductions. A 1% improvement in GTN can mean millions to the bottom line.

Challenge

Our clients include pharmaceutical companies, big or small, focusing on branded, specialty, and generic segments. Being able to understand, explain, and accurately forecast GTN adjustments is critical to the finance function of commercial pharmaceutical organizations.

Approach

In one centralized solution, capture the impact of market events to forecast in-market volumes; model pricing changes by brand and SKU; perform pre-/post-deal analytics and forecast and measure contract performance; incorporate rebate assumptions; and forecast channel mix and rebates by channel across Commercial, Part D, and Medicaid. Quickly apply changes to methodologies for forecasting GTN.

Key results

Improve predictability and profitability in the GTN process

Reduce human error from spreadsheets and manual data movement

Access real-time views of the business, from aggregate to high-resolution

Benefits

Simplify gross-to-net complications and confidently model all assumptions around distributor agreements, complex contract terms, and all rebates, chargebacks, and deductions.