Commercial Contracting Solutions

Contract management is critical to increasing profit margins for pharmaceutical companies.

The majority of business in this industry is contract-driven. But instead of being referenced as living documents to govern the customer relationship throughout the contract lifecycle, contracts are filed away after signing.

Contract management is laden with risk. There is risk of non-compliance, risk of litigation, risk of fines, risk of revenue leakage and risk of customer dissatisfaction. Exacerbating the risk, contract management processes tend to be disconnected, consisting of ad-hoc, manual activities when they should be a streamlined process. These inefficiencies translate to time-consuming processes, poor accessibility, missed revenue opportunities and financial exposure from non-compliance.

When you consider that even a minor amount of revenue leakage on a huge contract can translate to a multi-million dollar loss, it is easy to see why contract management is a core business concern for Life Sciences companies. Done correctly, contract management can provide your organization with a competitive advantage.

What is Commercial Contracting?

Commercial Contracting refers to contracts pharmaceutical companies make with non-government entities to increase patient access and market share. Contracts must be compliant with corporate integrity agreements (CIAs) and the “best price” from all contracts must be reported. Commercial Contracting solutions center on compliance, profitability and ideal pricing strategies.

Our proven solution consists of two pieces:

  1. Managing and optimizing contracts systems and processes through Business Process Consulting, Change Management and Organizational Design; and
  2. Systems implementation and integration of software to existing technology.  We help your company make better use of your existing “out of box” software capabilities (from other vendors), or move you to a more robust, customized solution.

Who Can Benefit from Commercial Contracting Services Solutions?

We are typically engaged by Life Sciences professionals who are responsible for financial operations or sales and marketing in Life Sciences companies and who may be:

  • Trying to leverage customer-supplied data most effectively
  • Attempting to stop revenue leakage from mismanaged incentive payments and reimbursements
  • Representing a newer company that doesn’t yet have commercial contracting software in place
  • Currently using a legacy contracting software system from another vendor and ready to upgrade
  • Tracking and maintaining compliance with pricing and contracting terms of Corporate Integrity Agreement (CIA) and multiple contracts
  • Facing negative downstream impacts due to inconsistent contracting data and poor accessibility
  • Struggling to optimize commercial pricing without negatively impacting government pricing, government program participation or federal rebate contracts
  • Facing challenges to effectively scale their contract management (and stay on top of reimbursements) to keep pace with sales volumes

How We Help With Commercial Contracting Services Solutions

Our team of industry experts will help you make a compelling business case for the use of our Commercial Contracting solutions, including improved operational efficiency, data integrity, enhanced compliance and profitability.

Our Team Can Help You:

  • Conduct business process evaluations to identify opportunities for improvement
  • Design a transition plan and roadmap to smooth transition from legacy systems
  • Create a central repository for contracts to support data integrity
  • Track and align discounts with product sales for better forecasting
  • Improve visibility and control over pricing, contracting, deal execution and compliance
  • Help manage contract sales opportunities so you can focus on targeting the best ones
  • Utilize advanced informational insights into customer-supplied data for better service

We offer significant expertise in Life Sciences, Process Management, Technology and Change Management to provide your company with a multitude of benefits, including:

  • Improved rebate accrual forecasting; better management from a ledger perspective
  • Revenue boost through reduced revenue leakage
  • Improved auditability through accessible, accurate, synchronized and consistent data
  • Better compliance and risk avoidance through systematized information management
  • Available access to customer supply data results in higher customer-centricity
  • Enhanced customer relationships through better performance
  • More profitability through streamlined internal workflows
  • Reduced administrative costs from more efficient processes and easy access to contracts
  • More effective use of limited sales resources, focusing on the best opportunities
Need Help Finding the Right Solution?

Request a free consultation with one of Paragon's leading industry advisors to discuss the best solution for your organization's unique challenges and goals.

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