Rebate Leakage:

How Pharma Companies Can Prevent A Multimillion-Dollar Problem

Every year, pharma companies lose millions of dollars due to rebate leakage—revenue that’s lost throughout the convoluted rebate payment process. According to MMIT market research from 2021, the average mid-sized pharmaceutical manufacturer spends $4 to $5 billion in rebates annually, and 2% to 3% of revenue is compromised due to rebate leakage. That means that manufacturers lose an average of $150 million every year from overpaying rebates.

However, ensuring that payers are adhering to the terms of their contract is an inefficient, error-prone and unsustainable process. Pharma companies need a better approach.

In this article, MMIT’s Jay Shah shares what pharma leadership needs to know about this costly problem, and how to build a strategy to address it.



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