Most manufacturers consider Compendia “price books,” but while pricing is part of Compendia, it’s actually just a small component. Much of the information coming from Compendia is clinical and has an impact on every part of the product decision making process. Unfortunately, most manufacturers don’t fully understand the effect Compendia data has on their launch strategy until something goes wrong.
We’ve identified 5 of the biggest ways Compendia can impact manufacturers, but the first is worth added emphasis due to its ability to completely halt momentum:
1. If your product is not listed in Compendia, physicians can’t access it to prescribe, pharmacies can’t access it to dispense, and payers won’t be able to adjudicate the claim. Essentially, Compendia is at the core of all launch strategies. E-prescribing, specialty pharmacy and distribution, trade, licensing – it plays a role in each of these functions and more. Manufacturers simply can’t afford a bad (or worse, nonexistent) Compendia strategy. It has to be a center of excellence for every product launch.
Other unexpected impacts include:
2. Therapeutic Classification assignments within Compendia can impact the product decisions of payers. Your product’s therapeutic class and single-source vs. multi-source designation determine rebates, chargebacks, co-payments, etc. Compendia data also provides payers with data to determine whether you are a brand manufacturer or a generic manufacturer, another big factor in payer decisions.
3. Missing and/or erroneous product information can have a negative impact on your product. If Compendia includes outdated information, the reimbursement amount could be based upon old pricing, even if the pharmacy purchased it more recently at a higher price point through their wholesaler. Additionally, missing information can spark an “NDC not found” message, impacting access to prescribe, dispense and receive reimbursement.
4. Outdated product information on a competitive product can also impact pricing calculations for the grouping as a whole. It’s important to not only ensure that your own product information is up to date, but also that of any other product that may be considered a competitor.
5. New competitor products added to your class can also impact grouping and pricing. Beyond searching for outdated competitor information, you should also monitor new brand and generics added to the therapeutic class, as well as any pricing changes. This competitor info can impact your own market strategy.
As you’re allocating resources to developing a Compendia strategy, ask yourself these questions:
- Have we checked our product details across all Compendia databases as part of our quality control process?
- Are we really first in class?
- How can we get a first in class therapeutic designation?
- Do we align with other products that exist on the databases today?
- How can we separate ourselves from anything that exists on the databases currently?
At Two Labs, we understand your Compendia strategy could make or break your product launch and have made it our mission to make the process as seamless as possible. But don’t just take our word for it:
- During 2018 and 2019, Two Labs’ Compendia experts worked on 24% of all new drug approvals.
- Most manufacturers will do 2-3 submissions to Compendia partners each year. Two Labs handles 2-3 submissions to Compendia partners every week.
- Our Compendia Account Management team is comprised of people who have previously worked for Compendia databases, meaning they’ve learned the system from the inside out.
- We offer exclusive Compendia support services, available only to Two Labs clients.
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