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.