Data Imperative for Drug Manufacturers' Contract Negotiations

This technical report discusses the challenges faced by drug manufacturers in negotiating commercial contracts and avoiding duplicate discounts. It outlines the increasing value of commercial discounts and the complexities arising from overlapping discount programs, particularly the 340B Drug Pricing Program and Medicare Part D. The report highlights the lack of access to essential data for manufacturers, which creates an information asymmetry in negotiations with pharmacy benefit managers (PBMs). It details the significant issues in contract negotiations, including unclear contract language and the power dynamics favoring PBMs. The report also notes the expansion of the 340B program and its implications for duplicate discounts. Furthermore, it presents the Kalderos Commercial Discount Monitoring solution, which aims to improve transparency and assist manufacturers in identifying ineligible rebates through a tech-enabled platform. This solution is designed to empower manufacturers with data-driven insights to enhance their negotiation strategies and mitigate revenue leakage.