If you have you ever tried to explain all the nuances behind the host of decisions to launch a new specialty therapy through limited distribution, then look no further. The article below does a yeoman’s job of explaining the ins and outs, ups and downs, and even some sideways of LD.
Limited distribution is the holy grail for a specialty pharmacy. Being selected as even one of a dozen (or more) specialty pharmacies ensures that the lucky SP will get a slice of what are typically a high ticket (and hopefully high margin $$s) prescriptions. Many a specialty pharmacy has gone from a ‘little engine that could’ to a behemoth SP in short order due to their success in landing limited distribution deals. At the other end of the spectrum, the ‘blessed’ SPs that are selected as the exclusive distribution partner for a new high-ticket therapy can see revenues skyrocket overnight (cash flow is the rocket fuel that SPs need to grow).
SPs learned that breaking the limited distribution glass ceiling was their ticket to the big time. That also means being offered preferred contracts by PBMs and Payers for reimbursement (since the manufacturer’s selection alone doesn’t always guarantee payment.) And, that contract usually opens the door to other non-limited-distribution therapies that might have also been previously blocked to them.
The article below focuses on limited distribution for Oncology products…. which represent the bulk of all LD programs. It also provides some key metrics that determine what qualifies as a limited distribution therapy even beyond Oncology. New hires working the specialty pharmacy segment would do well to familiarize themselves with this important area of specialty.
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Developing a Limited Distribution Plan for Oral Oncology Products
Mar 21, 2023 — The portfolio of oral oncology products has evolved over the past few years and so has the traditional model of distribution.
Distribution strategy is one of several key decisions that a manufacturer must make early in the process when launching a new oral oncology product. As the market has shifted from traditional community-based products to specialty medications, expanded solutions to better serve these products have evolved.
High-touch, oral oncology products require distribution solutions that are targeted toward maximizing patient outcomes. Limited distribution through a carefully selected specialty pharmacy network offers a greater level of patient care but also brings more complexity and the need for greater understanding to identify the right solution.
Why Select a Limited Specialty Pharmacy Distribution Model for Your Product?
