Pre & Post Deal Contract Analytics
Contracting continues to be an increasing differentiator in the Managed Markets space for Life Sciences companies as they look to increase profitability. The need for effective Pre-Deal and Post-Deal Contract Analytics is stronger than ever:
  • The need to harmonize pricing approaches between commercial and government purchasers
  • Proactive vs. reactive decision making
  • Clear return on investment (ROI) and gross profit analysis given pricing pressures
  • Analysis of market share, formulary access, utilization patterns and sales trends
  • Discovery of inconsistencies in contract language and/or rebate processing
  • Align systems and information architecture capabilities with business requirements
To address these needs HighPoint Solutions has developed the Strategic Tactical Administrative Remittance (STAR)SM Contract Analytics Framework:

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Customer Benefits
  • Creates rational expectations for contract performance
    • What should the steady-state market be for given contracts?
    • How long should it take to reach steady-state market share?
  • Understanding contract vs. no-contract scenarios
    • What is the maximum discount before a contract is not profitable?
    • What is the incremental gross profit of a contract?
  • Enable iterative process to discuss what-if scenarios for an individual product, and individual market, and the overall business
  • How does the individual contract relate to the “bigger picture”?
  • Understanding of sales volume and market share risks to the business
What is unique about the HighPoint STARSM Contract Analytics Framework?

We believe the key differentiator in the market place is the integration of quantitative modeling to better understand and review pre- and post-deal analytics. Our point-of-view is embedding quantitative modeling tools within the solution drives much greater robustness of the pre- and post-deal analytics.

Two Key Questions Need to Be Answered to Accurately forecast Product Adoption
  • What is the maximum market share (could be defined in a number of ways) that will be achieved?
    • Conversion Effectiveness Index

  • How long will it take for the maximum market share to be achieved?
    • Conversion Effectiveness Model
Integrated together, these two indices can be leveraged across all managed care for purposes of:
  • Forecasting managed market sales, market share, gross profit and potentially ROI
  • Understanding underperformance and over-performance within individual plans
  • Improving future contracting approaches
For more information about our Conversion Effectiveness Index and Conversion Efficiency Model, please contact HighPoint Solutions. Our STARSM framework will drive your organization to effective Contract Analytics.
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