Alliance Reports Record Growth in 2013: Revenue Up More than 20 Percent Over 2012, 100 Percent Growth Since 2010, Continued Profitability

Alliance Life Sciences reports record revenues in 2013, and a three-year compound annual growth rate of over 20 percent that has led to revenues nearly doubling from 2010.

“Throughout 2013, we delivered a strong line-up of services and solutions which translate into over 20 percent growth for our third straight year,” says Alan Crowther, CEO, ALSCG. “Also, our addition of Jason Watters as an experienced industry chief financial officer will help lay the foundation for continued growth.”

Watters joined ALSCG after serving as chief financial officer at McKinsey’s IT Solutions division, where he oversaw part of that division’s growth from inception to almost $200 million in revenues in five years. He brings considerable experience in high-growth consulting and IT solution environments.

In addition, ALSCG had record bookings in December 2013 and January 2014, positioning the company for another record year in 2014.

Watters states, “Based on industry trends in Life Sciences, and the growing demand for our unique mix of services, we expect over 20 percent growth in 2014 and 2015. We forecast that the firm will have grown almost 200 percent since 2010 by the end of 2015.”

Not only is ALSCG growing revenues at a significant rate, but also the firm experienced a number of major successes:

  • Three of the Top 10 Pharmaceutical Companies adopted ALSCG’s PriceRight™ global pricing solutions
  • Four of the Top 10 Pharmaceutical Companies used or renewed ALSCG’s PRICENTRIC™ global pricing data services
  • Seven successful “go-lives” at clients with Revenue Contract Management suite implementations

Crowther adds, “Our tremendous success and growth in a short time reflects the strengths of our strategy, our close relationships with our customers, and the efforts of our professionals around the globe. Building upon this momentum, we will continue to offer customers the management, technology and software products they need to solve business problems, maximize revenue and achieve optimal pricing in an outcomes-based world.”

NJBIZ Ranks Alliance Life Sciences in Top 10 Among Technology Consultant Service Companies in New Jersey

Alliance Life Sciences has been ranked number eight among New Jersey’s technology consultant service companies by NJBIZ’s Annual Book of Lists 2014, an influential source of information for business-to-business professionals in New Jersey.

“This ranking reflects our continued growth, our record 2013 year, the quality of our employees and their dedicated approach to serving our customers,” says Alan Crowther, CEO, ALSCG.  “We are honored to be recognized by the highly respected and influential NJBIZ, and applaud their focus on critical business issues.”

ALSCG serves over 40 of the largest pharmaceutical and medical device companies, including 8 of the top-10 largest pharmaceutical manufacturers, enabling them to focus on continued investments in patient health and well-being by helping them receive fair value for their products with an integrated portfolio of services:

  • Management Consulting
  • Technology Integration
  • Solutions and Data Services

ALSCG has many specialized offerings with top strategic positions in the industry, and delivers these services with expertise across the following domains:

  • Global Pricing, Reimbursement and Market Access
  • Contract Strategy, Operations and Compliance
  • Commercial Operations and Analytics

Crowther adds, “ALSCG helps its customers maximize revenue and optimize pricing in an outcomes-based world. We employ hundreds of professionals around the globe who help firms obtain the best value for their critical healthcare initiatives. This distinction helps bring attention to our leading set of offerings and set the stage for our customers’, and our, continued success.”

Global Lifecycle Price Management – A 360 Degree Approach

When launching a new product, companies are often met with a series of challenges. Any error or miscalculation could end up costing your company a significant amount of market share. One of the biggest hurdles to overcome is pricing. Finding a price that is both competitive in the global market, as well as profitable, can be more difficult than companies realize. The key is having access to accurate and current prices of the competition, while at the same time being able to set and maintain effective prices with minimal manual upkeep. Another concern with global lifecycle price management is price erosion with products that have been on the market for a longer period of time.

For example, according to a study by the EPP (European Pricing Platform), 42% of organizations are operating on the most basic level pricing maturity. Approximately 48% are functioning on a higher level, having the right prices on the right products to the right people, but still aren’t fully integrating the commercial process of alignment with marketing and sales. While this second tier is more desirable than the first, it is still far from optimal.

Global lifecycle price management issues can typically be broken down in 3 subcategories.

Product Launch Challenges

These issues can be some of the toughest to deal with when launching a new product. An effective launch starts by determining the best country sequence in which to launch your product, where a mere 1% in price difference can end up costing millions of dollars in net present value, or NPV. Managing all the details and data for launch planning is also critical, especially in knowing the effect they have on pricing. Also, you must take into account the need for change as the project develops, and often times manage this with changing parameters, to keep pace with the project evolution.

Price Maintenance & Compliance Challenges

The next obstacle is maintaining the strength of products that are already on the market. As conditions change, so too must the price on a product. This helps to avoid price erosion, which can cost millions of dollars every year. Here you must also be able to quickly and accurately check reference prices, which is a crucial step in being able to set an effective price in any country. This is a highly effective way to protect your company from any errors in government price publications, as well as to assist in generating accurate reports.

Loss-Of-Exclusivity & Mature Products

When managing older products, the key is to be able to monitor and manage with minimal manual effort and resources. Once a product launch is successful to the point of near self-sufficiency, it’s time to move on to the next project. Having to divert resources to an old project means diverting time and energy away from new ventures, and this can be costly in the long run. Your business must be equipped with the right tools. Software that can efficiently predict the potential impact of price erosion means adjustments can be made before they end up becoming costly issues.

Prevention is Key

What it all comes down to is the proper amount of preparation. By planning ahead and exercising the proper caution and forethought, charting a course to success is easier than one might think.

In the study conducted by the EPP, 88% of organizations declared intention to invest in pricing software for reasons such as, price monitoring, reporting, price guidance and deal making. Alliance Life Sciences specializes in helping life sciences companies operate at peak efficiency with a full suite of global lifecycle price management software designed and developed to aid in managing your business and making sure you hit the right price for maximum profit.

For more information, an on-demand webinar is available on market access operational excellence. http://youtu.be/KEg55rrBfh0

Membership Data Management: The Potential of Automating the Process

Proper management of membership data poses a significant operational challenge for pharmaceutical manufacturers.  Membership data is submitted by Wholesaler, Distributor and GPO (Group Purchasing Organization) customers in the form of “rosters” that are used by Manufacturers to determine eligibility for contract sales when adjudicating chargeback and rebate transactions.  Membership data also serves a second, and equally critical purpose, to assist Manufacturers in designating customer trade class for use in regulated price reporting and sales and marketing activities.

The first challenge in managing membership data is addressing the overwhelming volume of data received.  Most often rosters are sent via email to a processing specialist in the contracts and/or chargeback processing area.  A full listing is provided at the inception of the contract, and then updates detailing additions, changes and deletions to the listing are provided on a periodic basis, typically monthly.  The data then has to be aggregated, cleansed and added to the company’s customer master before it can be used to process transactions.  Even if the member has been previously recorded in the customer master, the accuracy of assignment cannot be guaranteed as a change or deletion may have been submitted by a wholesaler, distributor or GPO client for the current reporting period.

To lend perspective on the volume of members (and corresponding data), take for example a recent study published on GPO membership.  According to Becker’s Hospital Review as of September 2010, the five largest GPOs including Novation, Amerinet, Premier, Broadlane and MedAssets experienced recent growth in membership, totaling over 232,000 members on a combined basis.  Most pharmaceutical manufacturers will contract with several, if not all of these major GPOs.  Now add to that number the total members of the wholesaler and distributor sales channels, and it is not unreasonable to expect that total membership will exceed 200,000 to 500,000 for the average manufacturer.

In addition to the sheer volume of data, another key challenge relates to the quality of data received.  Most often the membership data is submitted in mixed electronic formats and contains only a handful of core elements.  The data includes unique identifiers, such as DEA and HIN numbers, accompanying demographic data elements such as class of trade, mailing address and contact information.  In many cases a manufacturer will receive membership information for the same entity across two or more rosters.   What is the appropriate action when the data is conflicting, especially when the conflict relates to class of trade designation?

Given the potential for data inconsistencies, the most critical challenge is mitigating the compliance risk associated with the use of membership data for regulated price reporting purposes.  In terms of accuracy of trade class designation, the onus is on the manufacturer to validate its accuracy, not on the Wholesaler, Distributor or GPO organizations that submit the data.  The information is often collected from their members and passed through as-is to the manufacturer.

When preparing regulated price calculations, manufacturers are required to use all data available during the reporting period to provide their best estimate for each required price type.  Currently there are a myriad of third-party proprietary data sources available to support validation including the HIN database, the DEA CSA database, the Hayes Directory, the NPI database and the PHS covered entity database to name a few.  Given the prevalence of these third-party proprietary data sources, it begs the question as to whether third party data validation is not just the industry best practice, but perhaps is an “unwritten requirement” for manufacturers.

For further reading on this topic, take a look at our white paper which digs deeper in the issues and proposes an automated process to mitigate the risk, increase quality and decrease effort.

One Week In

Welcome to our ALSCG Blog!

I am very excited to take the helm of Alliance Life Sciences and bring it together with the Adjility Health organization. It’s a privilege to serve both groups of employees, and all our customers.

Collectively, we have a lot to offer. We are solving complex problems across a lot of functions. We are doing great work in pricing, HEOR, contract management, clinical operations, and sales operations. We are introducing new algorithms to help our customers compete on analytics, we are creating some great technology and technology capabilities, and so on.

But what is most important in all of this is that we help our customers innovate in their work, and that we innovate in our own work. And by innovate, I mean real productivity gains and real shifts in ways of doing business. This is the source of real gain, this is how cash flow is freed up for the innovation that really matters: the research that brings new health therapies to market.

How do we show decision makers that a global trial can be executed for 3% – 5% less by optimizing site usage globally? How can a mobile app extend a pharmaceutical product into a service that has greater impact on patient outcomes?

We will spend time talking about how we are driving down the cost of our business and our customer’s business, helping manufacturers service patients and physicians better. Its not just solving a skill shortage or helping our clients with areas that are not core skills for them. Those things are nice – but we have to aim much higher, because the pressure to deliver on the industry has never been greater.

There are a lot of “first things” to get done, but one of the very first things we are doing is to get our leadership team up and active on all forms of social media, including our company blog. We have a very talented group with a lot of things to share.

Sharing these ideas with all of you, engaging in a dialogue with everyone more efficiently, is the first step in this process.

I look forward to what comes next!