CRO Covance is looking to help its biopharmaceutical and medical device clients manage their contract terms and associated payments better as some companies are losing almost 5% of US revenue from insufficient processes and contract management systems.
The company unveiled its new managed markets services as chargebacks and rebates used in contracts account for as much as 20% of US gross sales for biopharma and medical device companies, or about $50B annually, Steve Medina, VP of managed market services, who is leading this new effort, told Outsourcing-Pharma.com.
“We work with healthcare companies to provide sourcing options to support their contract management process while offering the flexibility of using only the services and staff they need, when they need them,” Medina said. “This helps protect a client’s revenue while providing, cost savings and spending efficiency (including reducing accrual requirements) for the company.”
Among the contracts Covance looks to help companies navigate include those with distributors, pharmacy benefits managers, third-party payers and government agencies.
Covance also plans to build these new market services into their larger portfolio of services for current clients.
Marc Ginsky, VP and general manager of market access, told us, “Managed markets services are another way in which we can help our clients improve patient health by facilitating access to their innovative products.”
This latest service offering for Covance comes as the company beat expectations in its most recent quarterly report from last week. It also comes as the company looks to diversify further with plans to shift into the early biologics development market , and as its central lab services were reported to be among the favorites of trial investigators .