Chapter 10 - Managed Markets

32 Questions | Total Attempts: 1000

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Chapter 10 - Managed Markets - Quiz

Managed markets, he's our man, if he can't do it, no one can!


Questions and Answers
  • 1. 
    What are managed market customers?
    • A. 

      Entities that play a large role in drug reimbursement

    • B. 

      Large entities that have the power to affect utilization of drugs

    • C. 

      Entities that determine drug reimbursement procedures

    • D. 

      A and B

    • E. 

      B and C

  • 2. 
    What are the two categories of managed markets?
    • A. 

      Public and Government

    • B. 

      Government and Commercial

    • C. 

      Commercial and Private

    • D. 

      None of the above

  • 3. 
    What role does Managed Markets play internally in a biotech/pharma company?
    • A. 

      Financial analysis and valuation

    • B. 

      Promotion and message platform as it relates to newly launched and approved drugs

    • C. 

      Developing corporate strategies to lead the discovery team

    • D. 

      Develop and execute strategies to secure access/reimbursement for company products

  • 4. 
    Which managed market channels are responsible for the vast majority of drug expenditures in the US?
    • A. 

      Department of Veterans Affairs

    • B. 

      Department of Defense

    • C. 

      Medicare

    • D. 

      Medicaid

    • E. 

      All of the above

  • 5. 
    Select the best example of how managed markets wield their power indirectly:
    • A. 

      They purchase drugs

    • B. 

      They assign higher co-payments to disfavored products

    • C. 

      They utilize restrictions that make it difficult to purchase certain drugs

    • D. 

      A and C

    • E. 

      B and C

  • 6. 
    What is the dominant US managed market segment?
    • A. 

      Commercial managed care

    • B. 

      Medicaid

    • C. 

      Medicare

    • D. 

      Dept of Veterans Affairs

    • E. 

      None of the above

  • 7. 
    How does a major managed care plan steer prescribers away from disfavored drugs?
    • A. 

      Higher co-pays

    • B. 

      Require pre-authorization

    • C. 

      Assign it to tier 1 on a formulary

    • D. 

      A and B

    • E. 

      All of the above

  • 8. 
    Why are physicians likely to make bright line decisions?
    • A. 

      To get into a routine in order to avoid potential prescription hassles.

    • B. 

      Because these decisions result in increased reimbursement for sponsoring pharma companies.

    • C. 

      Bright line decisions are an agreed upon series of rules that physicians must follow to avoid formulary restrictions

    • D. 

      In order to comply with FDA mandated regulations that are imposed on the interaction between Managed Markets and prescribers.

  • 9. 
    What is the definition of the Managed Markets Function?
    • A. 

      A function within a pharma company (or an outside vendor) that is responsible for a specific communications channel.

    • B. 

      A product’s therapeutic classification and its most important competitors.

    • C. 

      The people within a pharma company who are charged with developing a strategy for winning favorable payer coverage of company brands.

    • D. 

      The discrete customer groups that are targeted by pharma companies: trade, federal makerts, MCO’s, Long term care, and Medicaid/medicare.

  • 10. 
    What is the definition of the Managed Markets Segment?
    • A. 

      A product’s therapeutic classification and its most important competitors.

    • B. 

      The discrete customer groups that are targeted by pharma companies: trade, federal makerts, MCO’s, Long term care, and Medicaid/medicare

    • C. 

      A function within a pharma company (or an outside vendor) that is responsible for a specific communications channel.

    • D. 

      The people within a pharma company who are charged with developing a strategy for winning favorable payer coverage of company brands.

  • 11. 
    What problem(s), if any, does a high co-payment have for patient prescription adherence?
    • A. 

      The higher the co-payment tends to reduce the likelihood that a patient will fill the prescription

    • B. 

      The higher co-payment tends to result in a favorable position on the drug formulary, resulting in higher costs for the patient.

    • C. 

      A and B

    • D. 

      A high co-payment presents no problems for patient compliance.

  • 12. 
    Which statement about Medicare Part D is false?
    • A. 

      Medicare part D is the first robust outpatient pharmaceutical benefit from Medicare.

    • B. 

      It’s managed by public entities, which offer drug benefits consistent with the coverage

    • C. 

      It’s the first major outpatient benefit added since the Medicare program began in 1965

    • D. 

      Medicare Part D is an outpatient drug benefit provided by the federal government to people 65+ and the disabled.

  • 13. 
    True or False: The Medicare Modernization Act was not a big enough change to the existing Medicare plan to force a change in operations for pharma companies.
    • A. 

      True

    • B. 

      False

  • 14. 
    How do managed markets use the entry of new products of similar efficacy as existing blockbusters into the market place to their advantage?
    • A. 

      New products will always be less expensive than existing products to compete with the existing ones.

    • B. 

      Managed markets can use new products to drive the price of existing products down by lowering the formulary status of the existing products

    • C. 

      Managed markets can play new and existing product manufacturers off each other to receive more favorable pricing.

    • D. 

      All of the above

    • E. 

      B and C

  • 15. 
    How can the introduction of a generic affect the formulary status of an existing drug, for example, Lipitor?
    • A. 

      Due to the bioequivalence, the generic drug is put on the same level as the existing drug.

    • B. 

      The existing formulary status will always remain the same.

    • C. 

      The formulary status of the existing product might be lowered.

    • D. 

      The formulary status of the existing product might be increased, if possible.

  • 16. 
    What is the role of the internal managed markets team?
    • A. 

      To launch the most effective campaign to market a specific product to patients

    • B. 

      To conduct the financial analysis and product valuation required to market a product at the best price

    • C. 

      To make sure the company gets the reimbursement and access status required to maximize performance across the life cycle

    • D. 

      A and B

    • E. 

      All of the above

  • 17. 
    What is the marketing effort called when a product is at a disadvantage as compared to its competitors resulting in a difficult task for the sales force?
    • A. 

      A pull through

    • B. 

      A push through

    • C. 

      A bright line idea

    • D. 

      A plan of action

    • E. 

      FUBAR

  • 18. 
    Why are managed markets critical to helping a drug reach its full potential?
    • A. 

      Because Managed Markets is the division that creates the promotional platform on which to market a drug.

    • B. 

      Managed Markets is a major component of eliminating sales barriers that keep a drug from reaching its full potential.

    • C. 

      Because Managed Markets hold the relationships with outside sales channels and are the primary influence on prescribers.

    • D. 

      The Managed Markets segment is the primary channel through which sales teams must go, as outlined by their product specific plan of action.

  • 19. 
    Match each product with its position on a typical managed care formulary structure: Non preferred brands Disfavored products Preferred Brands Biologics and specialty products Generics
    • A. 

      Highest on formulary Lowest Higher Still higher Full cost often borne by patient

    • B. 

      Still higher Highest on formulary Higher Lowest Full cost often borne by patient

    • C. 

      Still higher Full cost often borne by patient Higher Highest on formulary Lowest

    • D. 

      Still higher Higher Lowest Full cost often borne by patient Highest on formulary

  • 20. 
    Which is not a factor that managed markets marketing must take into account when defining an appropriate strategy for securing desired formulary access at target accounts?
    • A. 

      The appropriate access goal

    • B. 

      The strength of the competition

    • C. 

      The key channels and key accounts

    • D. 

      The products value proposition

    • E. 

      The appropriate pricing and contracting strategies

  • 21. 
    Why is Tier 2 status not always essential for achieving product success?
    • A. 

      If the expected revenues after contracting aren’t attractive enough to warrant such aggressive discounting/rebates.

    • B. 

      If the required contracting forces the company to jump through too many hurdles.

    • C. 

      If the product is such an improvement over the current treatment, the product will sell itself and will not require a favorable position.

    • D. 

      If the company has a good enough relationship with prescribers to get them to prescribe despite its disfavored formulary position.

  • 22. 
    How does managed markets determine on which channels to focus their efforts, i.e. how do they define the key channels?
    • A. 

      Key channels are determined by the patient demographics associated with the product.

    • B. 

      Key channels are determined by with the site of product use/site of care.

    • C. 

      Key channels are determined by level and location of existing competition.

    • D. 

      A and B

    • E. 

      All of the above

  • 23. 
    Today, relationships with the Managed Markets channels are a ___________ of corporate and product strategy.  
    • A. 

      Derivative

    • B. 

      Customer

    • C. 

      Business unit

    • D. 

      Centerpiece

    • E. 

      Responsibility

  • 24. 
    What are the two variables that are used to assess account importance?
    • A. 

      Gross revenue and Size

    • B. 

      Size and level of control in driving utilization of a product

    • C. 

      Level of control in driving utilization of a product and gross revenue

    • D. 

      Type of existing treatment and gross revenue

  • 25. 
    Why is price not used as the only consideration when defining the value proposition of a product?
    • A. 

      Managed care plans will take into account the impact of the new product on existing treatments.

    • B. 

      If the benefits of the product far outweigh the benefits of the current treatment, managed care plans may allow an increase in price that is offset by the benefits received.

    • C. 

      If the company can show how their product represents a radical shift in treatment to better the quality of life of the patient, managed care plans may allow an increase in price.

    • D. 

      A and B

    • E. 

      All of the above

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