Sometimes our customers will ask us if a certain product is returnable so we thought it would be a good idea to provide some information about how expired pharmaceutical returns are assessed and how credit value is determined.
Return Eligibility Assessment
Prior to shipping expired returns to a manufacturer, your product undergoes a return eligibility assessment at GRx. This assessment determines if your product is eligible to be returned to a manufacturer for credit consideration.
Upon receipt of product, our process evaluates potential product return eligibility based upon manufacturer policy. This includes a review of expiration dates, product quantity (partial, full or full and sealed), general visible condition (original package damaged or missing), and any other conditions found in the manufacturer’s published return policy.
In addition to return eligibility, we also determine your product’s Estimated Return Value (ERV). To do this, GRx uses a service from Truven Analytics, a healthcare data management company, called Micromedex. This service provides GRx current Wholesale Acquisition Cost (WAC) for several hundred thousand active NDC numbers. Based on this pricing (or pricing provided by buying or corporate groups, etc.), we estimate the potential return value. Our assessment of the estimated value of your return is subject to manufacturer’s discretion and is not a guarantee of credit.
Please note that consolidated returns, i.e., batched returns, are processed according to a set schedule based on each Wholesaler’s program.
For this reason, we recommend you return expired product just before or as soon as it expires. Manufacturer’s return eligibility periods can range from 3 months to 12 months after expiration, so submitting your products early will help to ensure that there is sufficient time to sort, process and ship products to manufacturers and still be within the eligibility period.
If your returned product is deemed to meet manufacturer’s policy, then we ship the returned product to the manufacturer for credit eligibility consideration.
Credit Eligibility Assessment
The second assessment is when the manufacturer determines credit eligibility. After all of the above criteria have been met, the returned product is subjected to the manufacturer’s assessment of credit eligibility. Most manufacturers’ return policies contain the following credit eligibility exclusions:
1. Products sold in specially priced or discounted lots or batches
2. Donated products
3. Short-dated product purchased at a discount
4. Bulk purchases
5. Secondary market purchases and purchases from unauthorized distributors
The manufacturer then determines credit value, most often based upon one of the following:
1. WAC (Wholesaler acquisition cost) and sometimes less a “restock fee” of 10-50%
2. Lowest contract price over 12-24 month period
3. Current contract price or the known purchase price for the specific lot
These and other factors may influence the final credit value determined by the manufacturer. All manufacturers reserve the right to assess, reduce or deny return credit for any product for any reason.
Please feel free to contact us with any questions or comments you may have.
Thanks and happy returning!