Limited Distribution Networks

Limited Distribution Networks growth continues as Specialty Pharmacies compete to be chosen to distribute specialty pharmaceuticals.

AMI’s report, Distribution Decision-Making for Specialty Drugs, found that Pharmaceutical manufacturers typically develop a product-specific distribution strategy dependent on company-specific criteria when bringing a new specialty drug to the market.

Pharmaceutical manufacturers consider approximately 100-150 different specialty pharmacies (SPs) when developing their distribution strategy. Determining a SP network approach is an essential component of the larger product strategy process.

Criteria that pharmaceutical manufacturers consider includes:

– Business Decision (Financial and dispensing Information)

– Patient Access (Accredited Specialty Pharmacies services and dispensing facilitation)

– Data Sharing (Dispensing and supporting quality metrics)

Specialty pharmacies typically do not charge manufacturers extra for the services they offer when distributing a specific product. Specialty pharmacies also have the ability to provide the utilization data that is important to manufacturers.

AstraZeneca most recently has made distribution decisions for its drugs Tagrisso and Iressa, selecting Avella, Biologics and Diplomat to distribute both drugs.