Skip to main content

Institutional Sales in Pharmaceutical Industry (B2B)

A pharmaceutical product is marketed and sells through many ways like prescription sale (branded medicines, generic medicine), franchise medicine supply, OTC drugs marketing and supply to hospitals, pharmacy chains, online pharmacies etc. In prescription, generic, franchise, OTC etc, pharmaceutical companies have to build a distribution channel for selling medicines.

But big institutions and integrated delivery networks (IDNs) likes corporate hospitals, big hospitals, medical colleges, government hospitals, pharmacy chain’s governing bodies, online pharmacies hub etc purchase medicines at bulk quantity. They don’t want to indulge into distribution channel to share profit of margin among other members of distribution channel. They procure medicines and other pharmaceutical products through offering tenders, tie-up directly with pharmaceutical companies, big distributors etc. This helps them to procure medicines and other pharmaceutical products at lowest price as possible and maintaining maximum profit with them.

When a pharmaceutical companies or its authorized agents supply or contract to supply medicines directly to any hospital, medical college, corporate organisations, centralized institutions like group practices, integrated delivery networks (IDNs) etc are known as Institutional Sale.

As pharmaceutical industry is changing, Number of corporate, multi speciality hospitals and centralized institutions are becoming more common while small hospitals and independent practice by a doctor is becoming less prevalent. This is creating a huge scope in institutional sales for pharmaceutical companies.

Pharmaceutical companies maintain a separate institutional sales force to handle corporate hospitals and institutes, tenders, government hospital supply etc. Institutional sales team is responsible for handling and covering all major Institution and marketing, direct handling of major hospitals and corporate hospitals, Responsibilities for tender Sales and relationship management with tender committee etc. Institutional sales could also be termed as Business 2 Business (B2B) marketing type.

In pharmaceutical institutional sale, individual physicians or persons are not decision makers but decision making is decided by multiple stakeholders or by a formulary administrator. This makes it different from ordinary marketing types in pharmaceutical sector. In some cases, the decision about which drugs are included in a formulary is made by committee, which may be made up of physicians, pharmacists, nurse practitioners, and others. Decisions are based on clinical evidence, expert opinions, and cost-benefit studies.

Hope above information is helpful to you...
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

Read Related: Medicine wholesale business profit margin

Comments

Ayurvedic Medicine Company

Send Distribution/Franchise Query

Name

Email *

Message *

Register your business at

Find pharmaceutical, cosmetics, nutraceutical, ayurveda and alternative medicine's distributors, franchise, suppliers query for free.

If you want to take distribution, franchise or associates with any pharmaceutical, cosmetic or ayush company then you can find it here...

Popular posts from this blog

Schedule F, F1, F2, F3, FF

Schedules:  Schedule A ,  Schedule B ,  Schedule C ,  Schedule D ,  Schedule E1 ,  Schedule F ,  Schedule G ,  Schedule H ,  Schedule H1 , Schedule I,  Schedule J ,  Schedule K ,  Schedule L1 ,  Schedule M ,  Schedule M1 ,  Schedule M2 ,  Schedule M3 ,  Schedule N ,  Schedule O ,  Schedule P ,  Schedule Q ,  Schedule R ,  Schedule S ,  Schedule T ,  Schedule U ,  Schedule V , Schedule W,  Schedule X ,  Schedule Y Schedule F: Schedule F (Rule 78 and Part X) describes requirements related to Blood and Blood Components. We are describing general heading about schedule. This will give you Idea about schedule structure and matter. Part XIIB: Requirements for the functioning and operation of a blood bank and / or for preparation of blood components. I. This section describes details about Blood Bank and Blood Components General Accommodatio...

What are the Schedules under Drug and Cosmetic Act, 1940 & Rules 1945?

Schedules are the set of provisions for classifications of drugs, forms, fees, standards, requirements and regulations related to pharmaceutical, Ayurvedic (including siddha), unani and tibb system of medicines, homeopathy, blood and realted products etc under Drug and Cosmetic Act, 1940 and Rules, 1945. The schedule to the drugs and cosmetics act are Schedule A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y. Drug and cosmetic rules are divided into schedules alphabetically and named also alphabetically like Schedule A, Schedule B etc till Schedule Y. The schedules to the drugs and cosmetics act are important part. Every schedule contains specific information as discussed below. Schedule A:  Schedule A  describes application forms and licenses types. Download Schedule A Pdf Schedule B:  Schedule B  describes Fees for test or analysis by the Central Drugs Laboratories or State Drugs Laboratories. Download Schedule B Pdf Schedule B1: Sch...

What is the Difference between Third Party Manufacturing, Contract Manufacturing and Loan License Manufacturing?

Third party manufacturing, contract manufacturing and loan licensing, all are the terms for manufacturing own pharmaceutical brands without owing a pharmaceutical manufacturing unit. With help of these three, one can easily set-up own pharmaceutical company without investing at manufacturing facility. In this article, we will checkout difference between these three. First two are similar in many aspects and used as synonyms many times for each other in general talking but have technical difference. Loan licensing is totally different from these terms. First we will understand difference between third party manufacturing and contract manufacturing .   Third party manufacturing and contract manufacturing, both are the ways to get manufacturing own brand name products from manufacturing company with or without involvement of manufacturing process. Responsibility of manufacturing process is of manufacturer but marketing company may involve in procurement of material required...