Model N Report Reveals Pharmaceutical Regulation Concerns
Model N, Inc. has unveiled its sixth annual State of Revenue Report, providing a comprehensive overview of executives' key business priorities. Based in San Mateo, California, Model N, a trailblazer in revenue optimisation and compliance, was founded in 1999 and continues to lead in both high-tech innovation and the pharmaceutical sector.
The 2024 report underscores a significant shift in focus among executives towards process efficiency and cost-saving measures. Advanced analytics and AI have taken centre stage as organisations look to enhance their digital transformation initiatives. Supply chain disruption, a persistent challenge, remains a major hurdle to innovation.
Pharmaceutical Industry Challenges: Navigating Regulatory Impact
In a closer look at industry-specific challenges, the 2024 survey results reveal heightened concerns among pharmaceutical manufacturing executives. The impact of regulations on future revenue is a predominant worry, particularly in the context of price negotiations with Medicare under the Inflation Reduction Act. Executives from the United States anticipate a 'significant revenue impact,' doubling the concerns expressed in the 2023 survey.
A staggering 94% of pharmaceutical executives report challenges in formulary validation, a critical verification process ensuring that payers adhere to contractual agreements. The top challenges identified in assuring compliance include manual audits (49%) and limited access to formulary data (48%).
“With ongoing supply chain disruptions and component inventories piling up, nearly 60% of executives stated that they will ramp up investments in artificial intelligence to optimise revenue operations, and nearly half will do the same in robotic process automation,” says Gloria Kee, Vice President, Product Management at Model N.
“The survey also uncovered opportunities such as sharing pricing information for industry benchmarking purposes and utilising channel sales data for more informed pricing adjustments. With only 27% of companies leveraging channel data today, most are missing out on key information to optimise price points in markets worldwide. As economic uncertainty persists, channel insights are a largely untapped resource to help manufacturers make more data-driven decisions.”
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