What our client needed
A key product in our client’s portfolio was experiencing rapid increase in gross-to-net discounts due to increasing rebates and affordability program expenses. Firm leadership established a mandate for the product team to achieve savings in its affordability programs, but the lack of insight about the economic trade-offs of these adjustments caused uncertainty about how to proceed.
Cofactor Group prepared an analytical tool that combined insights from available data sources to explore the impact of changing the product affordability program. Our team then conducted exploratory analysis to understand the key drivers of growing expenses and inform the analytical approach. Building on learning from the exploratory analysis, we developed a novel approach for analyzing performance of the affordability programs and their impact on gross to net discounts and sales. Following development of recommended changes, our team facilitated a change management process for the client to communicate insights across the client organization to build support for change.
The analysis revealed several areas of opportunity to reduce affordability program expenses with limited impact on sales. The client successfully made these changes and used the analysis to guide its thinking about affordability programs across the company.