ABSTRACT
I will also seek to provide some rationale regarding the boundaries I have drawn in putting together this book. First, the book focuses on biopharmaceutical distribution-which refers to the point at which manufacturers release a Šnished product to the time that it is administered (whether by the individual to themselves or by a physician) and to the complicated set of distribution channels that exists between these two points. Implicit in this boundary are the numerous decision points and third parties that play a role, including manufacturers, payers, physicians, hospitals, pharmacies, transportation companies, healthcare education providers, thirdparty marketing organizations, government regulators, and numerous other enterprises all seeking to inªuence the demand and sale of drugs. We should also note that the term biopharmaceutical is used in this context to encompass biologics, pharmaceuticals, and vaccines. With the merging
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toward a single network of therapy, we no longer dižerentiate between solely biopharma or pharma interests. In the standard vernacular, biopharma pertains to larger molecules only (i.e., biological), which includes vaccines and biologicals (e.g., blood products), and pharma focuses on pills (e.g., solid single-dose tablet formulations). Brand-name companies are seeking to adapt to expiring patents by producing generic medicines including follow-on biologic drugs or “large-molecule” pharmaceuticals made from living matter. More companies are using solutions that span both small-and large-molecule solutions. Many companies with a largemolecule historical focus (e.g., GSK, PŠzer, AstraZeneca, Merck, Roche) are being drawn more into the small molecule space, which has been dominated by start-up Šrms that grew quickly (e.g., Genzymes, BiogenIdec, Genentech). By including all of these elements into a single distribution model, this not only simpliŠes the dialogue but also reªects the merging of biological and pharmaceutical distribution that will emerge in the new era of healthcare reform and pay-for-performance. Payers are o¬en seeking pay-for-performance, which means that metrics showing how ežective the drugs are must be demonstrated before insurance providers will agree to fund the tens of thousands of dollars o¬en required for a single individual to take the treatment over a year.
