Eliminate Hidden Gross-to-Net Profit Leakage
What a Gross-to-Net Profit Leakage Analysis?
Our drug gross-to-net profit analysis identifies potential lost profits across distribution channel. We are experts at integrating large volumes of disparate data from various sources and analyzing for unseen and undetected leakage.
Finding just $100,000 in lost profit today can yield over $1,000,000 in cumulative value over a drug’s lifecycle.
The analysis categorizes potential leakage from total wholesale acquisition cost (WAC) using data that you provide and offers solutions and recommendations on how to minimize or even eliminate the unexpected losses.
What We Analyze (And What We Exclude)
The largest sources of leakage typically involve PBMs and payers using rebates, fees & discounts, and copay card buydowns. Other external reductions may include wholesaler costs & chargebacks, product returns, free goods, and alternative funding.
Our analysis investigates the data provided, but excludes internal business costs such as production, logistics, clinical support, and other justifiable yet undisclosed expenses.
Ready to take a look at your data?
D2 Solutions' team of expert partners can help you take the next step.Case Study: Uncovering 21.2% in Hidden Profit Leakage
A pharmaceutical manufacturer partnered with us to determine why they were not realizing the profit they expected on a drug with $20,000,000 in annual Wholesale Acquisition Cost (WAC) sales. We analyzed approximately 66.6% of their total WAC spend across 25,000 net prescription claims to uncover unseen and undetected leakage in their distribution channel. What we found was staggering. The manufacturer had already accounted for 50–55% in contracted rebates and 4–8% in valid copay card redemptions, but our analysis revealed they were unwittingly losing a massive portion of their remaining revenue to avoidable errors
Our detailed analysis categorized this leakage, showing exactly where the money was going—including potential invalid rebates, 340B overlaps, excessive chargebacks, and alternate funding. With less than a fifth of their WAC remaining, achieving a decent profit had become nearly impossible. We presented management with a collaborative set of feasible options and recommendations, pointing out operational compliance issues with key vendors and suggesting program and contract language updates to minimize these unexpected losses without jeopardizing their critical formulary placement.