SHARP CLINICAL BUSINESS SERVICES Case Solution
Introduction of Sharp Clinical
Sharp Clinical would be established with the objective of providing the innovative clinical supply chain services, with a highly talented and experienced team, that can handle each aspect of the supply chain of its customers. The work of the organization would span from manufacturing, drugs development, clinical supplies packaging, distribution, labeling, comparator sourcing and qualified person auditing.
The healthcare has always embraced new ways of working, that address the changing demands and the clinical needs that benefit the patients, especially when the high-risk medicines are involved. However, it is also a difficult process for a number of clinics, to know about where the process starts. The aim of Sharp Clinical is simple, that is to provide the supply chain services to both the global and local products of the clients to their customers cost effectively, safely and quickly. In this paper, we discuss the core components of setting up a profitable business for Sharp Clinical and highlight some projected financials.
Create Value for Pharmacists & Biotechnology Firms
The access and the safety of the patients would be the primary goal of Sharp Clinical. This service would specifically manage the entry of novel oral anticoagulants (NOACs) for maximizing the safety of the patients to access such drugs. When NOACs had been first introduced in the market, there had been a huge risk that some of the clinicians might over prescribe the medicines and the other clinicians might not be able to prescribe such high power medicines, because of their unfamiliarity with such drugs(Brown, 2016).
Along with the provision of the supply chain services, Sharp Clinical would accept the referrals from the acute trust doctors and the GPs. It has been projected that on a monthly basis, Sharp Clinical would be accepting 150 referrals per month for a fixed fee of $150 per referral. As the business would grow, we would be expanding the NOAC service model and target other areas of prescription. The pharmacists are always placed in such a position in the market where they are looking out for opportunities for innovative, and new clinical services are providing them with this type of service. That would help Sharp Clinical to demonstrate the value pharmacists can have.
Identifying New Opportunities and Avenues for Revenue
The NOAC service model would add value for the patients, as well when they are involved in a decision about the choice of the anticoagulant. Thus, if certain patients or individual customers would approach us.Then we would also be providing the intensive counseling and recommending the right amount of the correct dose for the anticoagulants.
In order to boost the profits of Sharp Clinical, there are specific types of the medicines that would be the targets for our service. These would include:
- Medicines that have complex prescribing regiments
- Medicines which have narrow therapeutic indices
- High Cost medicines
- All those medicines that would require individualized dosage
- Medicines with adherence support and full consultation with the patients
Make the Supply Chain better Holistically
The profitability of Sharp Clinical can also be increased, by adopting a holistic approach to supply chain services, such as streamlining the global supply chain, maximizing efficiency and reducing waste. The most important key performance indicator for Sharp Clinical would be ‘NO DRUG HOLIDAY’(Baker, 2008). This means that, at Sharp Clinical we would have sufficient amount of drugs, so that we do not run out of them at any point.
The market for clinical supply chain services has not evolved much over the past therefore, there are no specific industry standards and techniques to capture the data. Most of the clinical supply chain businesses rely on paper based compliance systems and manual entry of data into the excel spreadsheets. However, Sharp Clinical would make use of the latest data analysis techniques and models. Forecasting would be done through CLINapps, SAP and Excel. Along with this, Monte Carlo Simulations would also help us to identify the blind spots where the probability of failure is high, and thus we would make the most optimal decisions(SupplyAlliance, 2015).
Financial Model for Profitability
The financial model of profitability for Sharpe Clinical Business has been generated based on assumed values and growth percentages however, it would service as the target for Sharpe Clinical to increase its profitability(Baker, 2008). The model is shown in table 1 below:
|SHARPE CLINICAL PROFITABILITY MODEL|
|Year 0||Year 1||Year 2||Year 3|
|Initial Investment||$ 200,000|
|Supply Chain Service Revenues|
|Number of Clients||200||250||300|
|Service Fee per client||$400||$400||$400|
|Total Supply Chain Service Revenues||$80,000||$100,000||$120,000|
|NOAC service Model Revenues|
|Monthly Avg referrals||125||137.5||151.25|
|Fee per referral||$150||$150||$150|
|Total NOAC revenues||$18,750||$20,625||$22,688|
|Supply Chain management costs per $ 1000 Revenue||$98.75||$120.63||$142.69|
|Salaries paid to personnel||8000||8000||8000|
|Non-clinical costs (Administrative Personnel)||5000||5000||5000|
|NPV (10% discount rate assumed)||$64,040.30|
Other Recommendations for Sharpe Clinical
Some other important recommendations for successful and profitable supply chain business that would be implemented by Sharpe Clinical are as follows:
- Maintain consistent communication between the supply team and the supply chain operations for promoting effective study planning.......................................