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Wednesday, September 17, 2014

Inventory Reduction

In pharmacy we must always be mindful of our inventory. We must improve our turns, keep inventory low, and order profit-friendly NDCs.
Manufacturers have these same issues.
When you market a "new" medication, you want it to be a game changer. You expect to sell it by the bushel. What if that doesn't happen?
You get this quick, witty conversation at work.

CP's Partner: Why did you run this through for the 30 count NDC?
CP: Because the Rx was written for 30 tablets and I don't think we'll use it again.
CPP: Great minds think alike.
CP: Indeed.
CPP: Only one problem.
CP: What's that?
CPP: They quit making the 30-count NDC.
CP: Of course.
CPP: We can only order the 90-count NDC now.
CP: Right. Well when you have a groundbreaking drug such as this you want to sell as much as you can.
CPP: Did you just call Gralise a "groundbreaking drug".
CP: I did.
CPP: Your cynicism just made me spit out my coffee.
CP: Thanks. Think about it. They took plain old Gabapentin, made an extended-release form of it and charged triple. No one prescribes it because it's rarely covered and the generic is much cheaper. Now how does a company with a failed brand get rid of their inventory? They package all their slow-moving product in larger bottles forcing pharmacies to order sizes they don't need. This puts the burden on the pharmacies to get rid of the inventory. Manufacturer's warehouses are emptier, product has been sold and paid for, profits improve. Pharmacies are stuck with partial bottles waiting to expire. Think of all those Duexis prescriptions we received.
CPP: Another fine groundbreaking drug.
CP: Indeed...Right you are, Ken...

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