Specialty Pharmacy pay

What about Diplomat Pharmacy? Who are some of the top companies?

 

Diplomat isn't a big player.

 

You're an idiot if you think Diplomat isn't a big player. It's the largest non-PBM pharmacy in the country.

 

Can you help regarding what the commission rate should be? What they are quoting seems low .75% first year and 1.5% 2nd....new growth only

 

Specialty pharmacies that take Medicare that are commissioning any part of your income , even while carving out federally funded programs, is illegal. No matter how they try to spin it, it is illegal.

The wall street journal has a great article about current criminal investigations with a current specialty pharmacy and a pharmaceutical manufacturer.

 

Well that is rather scary! I'm sure they are unaware. This is a new venture for this pharmacy entering the specialty arena. I'm the first rep in this area, from what they've told me.

I've been out of sales for 9 years and reentering. I'm excited but have a lot to learn. Please share any tidbits about this arena. I was a Pharma rep for 6 years and a DM for 1. Thanks

 

Also....they've got to have a baseline for growth regarding bonus. I'm unsure how that is illegal? I am a sales representative earning bonus. Regardless of what programs they contract with....I.e., Medicare. Perhaps there is a miscommunication on my part?

 

High dollar modalities are the new target. The compounding indictments show that when it comes to federal funds, W2 or 1099, and income based upon number of sales, is considered a kickback.

Specialty pharmacies are the new target. Although many deal with infusion therapies, the reps are still paid on pushing the high dollar infusion, when a cheaper alternative exists. For example, RA drugs.

Also, pharmacies that mail across state lines is also being scrutinized. Why would a doctor in NY prescribe a drug from a pharmacy in Fl? If it is due to some relationship with a rep, the OIG still considers this a kickback.

The rules really are strict and with recent indictments of the sales sector, we have to protect ourselves, or at least educate ourselves as much as we can.

 

Thank you. So....as I've not signed the contract yet and the salary offer is okay....should I inform them of this and perhaps ask for higher salary and stay away from commissions for now?

 

I work for a small regional SP- last year I made 185k mainly because of my relationships in the Hep C world. But because I know how to sell I've branched off into IVIG and hemophilia. This year I should easily top 200k.

The benefits are pretty bad compared to pharma but the pay is way more. Plus we don't follow any of the self imposed "pharma" guidelines which makes it easy.

 

so in other words paying docs off for their business

 

These self imposed guidelines are called the law. You should read the sunshine act. The current case with Valeant and specialty pharmacies is only the tip of the iceberg. I hope you have lawyered up. You are going to need it.

 

Hello, I am being recruited by a specialty / infusion pharmacy. The salary is $65k. They are offering 3% commission based on the amount paid by the insurance. Goal set at $2,000,000 / yr. Does that sound reasonable and doable? What is the standard structure? Thanks....

 

Salary is low. goal is high unless you are in an established territory and of course you have to know what their contracts look like. If they are new and have few contracts you are screwed unless they are going to be doing things out of network which really is not in the best interest of the patient. Do they have any competitive advantages? There are now 100's of SP's so competition is tough. If you are a drug rep stay in that field. SP is not all it is cracked up to be and again you have 40 competitors going after 1 patient. At least as a drug rep competition is not as bad Good Luck

 

Unless you have some really good relationships with some big accounts 2 million a year is a really high goal. That salary is really low. Last year I did 2.3 million in filled revenue and I made 230k last year. Most of my intakes are in Hep C, Oncology and IVIG. I have really good relationships with multiple manufacture reps and I know how to sell- I was in pharma for 18 years prior to coming into the SP world. My point is- it is really hard and I came into it with solid relationships. If you don't have that to start this industry would be impossible. Stay in pharma unless you are really are the best of the best.

 

Competitive advantages? All SP's offer pretty much the same stuff- some actually follow through on the promises most don't. I agree with the rest of your post!

 

Wow - what company do you all work for with only a 2.3million goal? My territory goal is over $6m with a brand new territory, and I am on track to do over that. Our established territories have goals of anywhere from $15-30 or 40 million. Our base is $90ish, but our commission structure is really srewy. I am currently only doing about $6000 per month in commission, but some reps do $10-15k a month. It all depends on what your access to plans is like in your territory.