Exploring a generics strategy for your pharmaceutical needs

Positive patient health outcomes depend on the patients’ ability to access and afford the medicines prescribed by their providers.

Since generic drugs typically cost 80% to 85% less¹ than their brand-name counterparts, providers need to manage pharmaceutical sourcing so that generics can be available to patients when possible. 

However, providers often source generics from many different distributors, resulting in a complicated pharmaceutical supply chain, additional administrative burdens, and inefficiencies within their practice.

Dealing with multiple orders and invoices, including multiple deliveries, can take time away from patient care. Without a dedicated distributor working to source generics on their behalf, these doctors’ offices may be more likely to end up with drug shortages and backorders.

Rather than floundering to keep up with multiple generics providers, doctors and practice administrators can often be more successful by working with one dedicated distributor, such as McKesson Medical-Surgical, to implement a streamlined generics program.

“Our generics program is designed to save non-acute healthcare providers time and money, coupled with the enhanced ability to properly care for every patient,” says Summer Hourigan, senior manager, Generics Programs and Operations at McKesson Medical-Surgical. “We’ve strategically scaled our portfolio to drive supply continuity, while maintaining the individualized services and expertise needed to simplify your sourcing. Our goal is to have the right mix of products at the right price so that doctors—and patients—can get what they need when they need it.”

Benefits of a Generics Strategy

Without a focused generics strategy, providers may struggle to source back-ordered products. Many practices are unable to provide the medicines patients need when prescribed due to drug shortages and backorders.

A focused generics strategy with a dedicated distributor can help you overcome pharmaceutical supply chain challenges and better serve customers by predicting potential shortages and tapping into a broader supplier base.

With a full-service generics strategy in place, doctors and staff can benefit from automated processes that free up time for providers to focus on other tasks.

They can also take advantage of distributors’ longstanding contractual relationships with pharmaceutical manufacturers that drive cost savings and drug availability.

For example, with robust data analytics, McKesson can identify gaps in the product catalog and reach out to manufacturers to fill in those gaps before a shortage occurs. McKesson offers a private label portfolio with additional quality choices for providers.

“We hear of many practices having to go to multiple distributors to obtain medical and surgical supplies, pharmaceuticals, and lab equipment,” Hourigan says. “But with our extensive portfolio, they’re able to choose one.”

Distributors Ensure Quality Generics

When practices rely on a large distributor like McKesson to orchestrate generic pharmaceutical sourcing, they can count on quality, availability, and competitive pricing. That’s because McKesson offers access to the following benefits:

• Manufacturer relationships. McKesson builds long-term relationships with manufacturers, collaborating with them to proactively manage backorders or supply shortages. Currently, McKesson works with more than 250 generic drug manufacturers.
• Broad catalog. McKesson offers an extensive catalog that includes more than 8,600 active generic items. The catalog consists of all generics presentations, including injectables, infusion items, solutions, drops, and capsules. New generics are added to the portfolio as they are released to the market.
• Purchasing power. With the power of McKesson behind you, your clinical practice, regardless of size, can benefit from economies of scale.
• Distribution network. McKesson set up a sizeable distribution network that can help overcome out-of-stock issues.
• Proactive account representation and support. McKesson’s sales and support teams have generics expertise and are committed to answering questions, responding to requests, and tailoring products to a clinic’s particular needs.