In today’s pharmaceutical landscape, optimizing Gross to Net (GTN) forecasting isn’t just a best practice — it’s a necessity. During a recent webinar, we joined Twelve Consulting Group to delve into the critical characteristics of effective GTN forecasting and demonstrated how enterprise performance management (EPM) platforms, such as Pigment, can transform the forecasting process.
The Gross to Net Partnership Driving Pharma Innovation
Tara Rockers, Life Sciences Practice Leader at Twelve Consulting Group, emphasized the synergy between Pharosity's deep industry expertise in contracting and pricing operations for manufacturers, and Twelve's technological mastery of EPM platforms. Together, we provide manufacturers with tailored solutions that bridge process and technology.
Key Characteristics of Best-in-Class GTN Forecasting
Data Integration and Automation
Brian Barbash, Partner at Pharosity Consulting, identified three levels of data automation, from manual processes to fully automated solutions. Full automation, featuring centralized data repositories, not only streamlines operations but unlocks the full potential of data across organizational functions.
Comprehensive Modeling of Terms
Modeling contractual and regulatory terms within a single EPM platform enhances flexibility and ensures real-time insights into the impact of pricing and contractual changes. This empowers manufacturers to adapt quickly and accurately to market dynamics.
Bottom-Up Volume Forecasting
By forecasting at the customer level and rolling it up through channels and brands, manufacturers can align granular insights with broader demand forecasts. This dual approach reconciles discrepancies and drives data-informed decisions.
Scenario Modeling
The agility of EPM platforms allows manufacturers to model complex scenarios quickly, a significant improvement over traditional Excel-based methods. Teams can now explore the impacts of various scenarios in real-time, fostering faster, more informed decision-making.
Portfolio-Level Reporting and Analysis
EPM platforms enable a holistic view of brand performance, helping stakeholders focus on exceptions and trends rather than sifting through individual data points. This capability is crucial for strategic portfolio management.
EPM Platforms: A Game-Changer for Gross to Net Forecasting
William Murray Brown, Senior Solution Architect at Twelve Consulting Groupo, showcased a live demo of GTN forecasting in Pigment, highlighting features like dynamic scenario modeling, automated data integration, and detailed reporting capabilities. The flexibility of EPM platforms allows manufacturers to tailor solutions to their unique processes, ensuring scalability and adaptability in a fast-evolving industry.
Conclusion
GTN forecasting is no longer a cumbersome, manual process. With the right platform and expertise, manufacturers can transform their forecasting capabilities, driving accuracy, efficiency, and strategic decision-making.
Want to Revolutionize your GTN Forecast?
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Frequently Asked Questions (FAQ)
What is Gross to Net (GTN) forecasting?
Gross to Net forecasting is a critical financial process for life sciences manufacturers. It involves estimating the volume, sales and discounts for the partners that manufacturers sell to and through, coupled with liabilities for programs further supporting patient access to medications. The results are central to financial accounting and accruals, and help drive informed decisions for market access strategies.
Who are Pharosity Consulting and Twelve Consulting Group ?
Pharosity Consulting is an industry expert in contracting and pricing operations, Gross to Net, and revenue management within Life Sciences. Twelve Consulting Group specializes in enterprise performance management (EPM) tools, delivering custom solutions to streamline planning and forecasting processes. Together, they combine technical expertise with deep industry knowledge to provide tailored GTN solutions.
How do EPM platforms improve GTN forecasting compared to Excel and point solutions?
Enterprise Performance Management (EPM) tools streamline GTN forecasting by eliminating the inefficiencies of Excel and the rigidity of point solutions. Unlike Excel, where manual processes, file versioning, and scalability issues can slow down forecasting, EPM tools enable automation, real-time scenario modeling, and seamless data integration. Compared to point solutions, EPM platforms offer greater flexibility, allowing technology to align with unique business processes while adapting to changing market conditions. This combination empowers teams to focus on analysis and strategic decision-making, rather than unproductive time spent administrative tasks or waiting for third party updates to point solutions.
How can I learn more about GTN forecasting and EPM platforms?
The best way to get started is to get in touch with Brian Barbash and Tara Rockers to schedule a call.