PRINCETON, N.J. -- Covance Inc. (NYSE: CVD), one of the world's largest and most comprehensive drug development services companies, announced the creation of a new service offering focused on providing its biopharmaceutical and medical device clients support to effectively manage contracts in managed markets. Steve Medina, Vice President, Managed Market Services, is leading this new effort.
Covance's managed markets services will help clients maximize value by improving controls and management of contract terms and associated payments. The new service will also help biopharmaceutical and medical device clients obtain higher market share by gaining better visibility into contract performance with managed care organizations, group purchasing organizations, federal and state programs, and wholesalers.
The service targets a substantial need in the marketplace as chargebacks and rebates used in contracts account for as much as 20 percent of US gross sales for biopharmaceutical and medical device companies (approximately $50 billion a year). Without the right controls and contracting processes in place, biopharmaceutical and medical device companies risk both revenue loss and potential penalties associated with a failure to comply with government regulations. It is estimated that biopharmaceutical and medical device companies currently lose up to 4.4 percent of US revenue per year, or $11 billion a year, due to insufficient processes and contract management systems at a time when the economic environment for the sale of drugs and devices has never been more challenging.
"Covance is pleased to have invested in the expertise and technology to help biopharmaceutical and medical device clients prevent significant annual revenue losses from insufficient oversight of the contracts that are used to negotiate price and formulary placement with insurance companies, wholesalers and the government," said Marc Ginsky, Vice President and General Manager, Covance Market Access Services. "These contracts have become increasingly complex over the past several years and the acquisition and maintenance of the talent and technical infrastructure required to set up, maintain, and manage contracts without revenue leakage is a significant struggle for our clients."
"Covance's managed markets services can transform a labor-intensive, time-consuming, and costly process into a far simpler and more efficient service platform for our clients," said Steve Medina, Vice President, Managed Markets Services. "We believe that no other company currently offers a full-service, end-to-end solution across all types of contracts and services, with a full technical environment provided as part of the underlying service."
Covance's managed markets services will be led by Steve Medina, who joined Covance in July 2012. Medina came to Covance from HighPoint Solutions, where he was Vice President, Managed Service. Prior to this, Medina was the Practice Leader of the BTS Delivery Services Organization within IMS Health, the delivery services organization responsible for providing specialized solutions and on-going services to life sciences companies. His career includes 23 years of consulting, focused on health care product manufacturing. He specializes in ongoing service solutions, account management, and systems implementation. Medina has extensive experience with contract management, as well as sales and marketing.
More information about Covance's managed markets services can be found at www.covance.com/managed-market.
About Covance Inc.
Covance, with headquarters in Princeton, New Jersey, is one of the world's largest and most comprehensive drug development services companies with annual revenues greater than $2 billion, global operations in more than 30 countries, and more than 12,000 employees worldwide. Information on Covance's products and services, recent press releases, and SEC filings can be obtained through its website at www.covance.com.
Forward-Looking Statements
Statements contained in this press release, which are not historical facts, are forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements are based largely on management's expectations and are subject to and qualified by risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, without limitation, factors described in the Company's filings with the Securities and Exchange Commission including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.