Contracts, Chargebacks, and Rebate Management Solution Addresses Critical Requirements for Generics Industry:  Client Case Study #1—RxElite Holdings

Webcast

Recorded on:
10/25/2007 2:00 pm Eastern

Description:

Join Earl Sullivan, Executive Vice President of Operations at RxElite Holdings, and Michael Webster, Director of Life Sciences for CDC Software, for insights into the value of implementing a chargebacks solution that addresses data volume, non-standard pricing, management fees and rebates, and regulatory compliance, while also providing real-time membership and pricing data, automatic chargeback validation, standard EDI transactions, automatic updates and full integration to AR and GL, automatic fee and rebate accruals, validation of fee and rebate payments, Medicare/Medicaid reporting, and comprehensive reporting and analysis to assist with contract performance, contract negotiations, pricing compliance, and AMP calculations.

With deductions from chargebacks ranging from 2 to 15 percent of gross revenue, generics manufacturers of all sizes recognize that this single aspect of their business can determine whether or not they can achieve and sustain profitability. They know that accurate adjudication of chargebacks is critical to their ability to demonstrate Medicare/Medicaid pricing compliance, and that fines for improper government pricing can range from tens of millions to hundreds of millions of dollars.

Revenue leakage, SOX controls, and the core need for corporate risk abatement all drive the need for a solution that enables chargebacks and pricing compliance—that is, an application that manages deductions wholesalers take based on the price variance between the wholesaler contract and the end-customer contract (e.g., for Chain Retailers or Group Purchasing Organizations). To further illustrate the value of automating this complex process, CDC Software customers who are able to consolidate multiple systems (e.g., ERP, Electronic Batch Records, Chargebacks, and Analytics), have been able to save upwards of $700,000 per small or mid-size company with one application set.

RxElite Holdings is a high-growth, specialty pharmaceutical company that develops, manufactures, and markets generic prescription drugs in specialty generic markets. RxElite’s products include anesthesia drugs, sterile liquid dose drugs (including respiratory inhalation drugs, ophthalmics, and injectable drugs), and transdermal patch products. The company recently implemented CDC Software’s full enterprise resource planning (ERP) solution, with its built-in chargebacks application and business analytics module, in a 90-day period.

Comments from clients on the value of CDC Software’s chargebacks solution and suite of enterprise applications:

"Processing Orders thru EDI, and processing Chargebacks with Ross Enterprise ... has reduced our daily manual processing efforts by approximately 80 percent."
—Scott White, CEO, Aurobindo Pharmaceuticals

"The more we work in the [Ross Enterprise] system, the more value the system brings to our team."
—Chris Kite, Customer Service Manager, Rx Elite Holdings

"We made the choice to partner with CDC based on their track record and clear focus on the generics industry. Their range of software solutions, specifically those related to contract management and chargebacks, provides us with an efficient, cost-effective way to address some of the most pressing requirements we have within our industry."
— Michael Keenley, Vice President of Marketing and Operations, Zydus Pharmaceuticals

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