The concept of market share, in which a company’s product or service represents a percentage of the industry as a whole, has a specific operational significance for the managed care (MC) practices of a pharmaceutical company. Historically, the market share achieved by a drug within its therapeutic class has been linked to payment tiers made to contracted entities. In recent years, this once standard rebate strategy within pharmaceutical revenue management has been significantly under-utilized. Because the majority of prescription drugs are dispensed under MC programs, understanding this shift is a critical component in predicting where the industry is headed.
Alliance Life Sciences » Market Share Rebates: A Fading Trend