Pharmaceutical Returns

What is Estimated Return Value (ERV)?

3 years ago  •  Add Comment  •  by Donna Bliss

New to pharmaceutical returns or just looking to get reacquainted with returns lingo, then this is the blog post for you.  If you still have questions after reading this post, please ask Us.

Ask Guaranteed Returns

Pharmaceutical Returns terminology you should know:

Estimated Return Value (ERV): This is the total estimated value of the products you have returned in a given cycle.  This value is based on:

  • Industry Standard
  • Available Manufacturer’s Price Information.

Manufacturer’s return policy, current contract pricing, or any special purchase agreement ultimately determines the amount that will be reimbursed for the expired product.  The reverse distributor ensures full compliance with the manufacturer’s returns policy, and maintains coordination and follow up with the manufacturer, to assure that maximum credit is issued.

Expired Returns Credit: Based upon a Manufacturer’s returns policy terms, expired products that are returned to the manufacturer from a pharmacy (via a reverse distributor) are eligible for return credit.  This credit is most often issued to the wholesaler in the form of a credit or check.

The Wholesaler reports these funds to the reverse distributor, who calculates and reports back to the wholesaler the amount of credit due to the returning pharmacy.  Your wholesaler then applies this credit to your account.

Direct Vendor Credit: Some manufacturers prefer to credit pharmacies directly, often by check, and bypass both the wholesaler and reverse distributor.  These manufacturers are called direct vendors.

The reverse distributor will process your direct vendor returns in accordance with Manufacturer’s policy requirements, but is ordinarily not involved in the distribution of credits for these direct vendors.

Occasionally, a manufacturer who would ordinarily issue credit directly to you, will instead issue a “drop ship” credit to your wholesaler on your behalf.  In that event, these credits are passed to you in the form of an adjusting credit to your distribution.

Want to Know More about Pharmaceutical Returns?

Ask Guaranteed Returns

Share our post

Leave a Reply

Your email address will not be published. Required fields are marked *