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Temple Analytics Challenge 2019

Why do pharmacies buy drugs from non-primary vendors?

Pharmacies typically engage with a single pharmaceutical distributor to purchase all the drugs they need. This type of arrangement is governed by a contract called a Prime Vendor Agreement (PVA.) A pharmacy may choose to purchase drugs from a distributor other than the one it has a PVA with; this is referred to as “leakage,” and it can sometimes be significant.

Your challenge is to determine which drugs are being bought outside the PVA from other distributors, hypothesize why this is happening, and recommend where AmerisourceBergen should concentrate efforts to reduce this leakage and regain lost revenue and profit.

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Example of a Primary Vendor Agreement