Challenged by the complexity of developing and maintaining an effective gross-to-net (GTN) function? You’re not alone. The life science industry, especially for government contractors, continues to be a difficult landscape to navigate. We’re here to help.

    Our gross-to-net approach

    From launching your first product to sustaining and expanding a robust portfolio, the complexities within the product distribution channel create risks associated with financial reporting, product sales, contracting and beyond. Our industry experience and proven solutions meet this challenge — helping increase reporting accuracy, make better contracting and pricing decisions, and reduce financial reporting risk. Our GTN approach:

    • Assess product(s) in the supply channel at the unit level
    • Develop cost/accrual assumptions based on supply channel and related discounts/fees
    • Identify, map and utilize key data and benchmarking trends to develop and apply assumptions
    • Drive commercial discussions and financial reporting through a cross-functional focus
    • Integrate all aspects of government and commercial strategies
    • Communicate financial results to operations, senior management and overall financial reporting

    Gross-to-net overview

    Baker Tilly gross-to-net overview

    Considering cost implications throughout the entire product life cycle — including GTN, cost of goods sold (COGS) and selling, general and administrative expenses (SG&A) — we work closely to analyze the costs within your product distribution model to accurately report product financial results and assist senior management with strategic pricing and contracting decisions.

    Understanding the distribution and reimbursement channel

    Understanding growth-to-net components

    Consultative assessment

    Looking to enhance your current GTN function? Start here.

    • Conduct high-level or deep-dive assessment of your GTN function
    • Enhance existing processes, controls and assumptions methodology
    • Explore scalable solutions designed to meet current state and growth expectations, with clear transition plans
    • Provide current to future state roadmap with implementation, financial requirements and business case

    Pre-launch assistance

    Planning your launch? Jump in here.

    • Help design and establish your GTN function while your product distribution and reimbursement channel is being established
    • Assist with product launch planning and establishing the distribution channel
    • Build revenue forecasting through solutions designed to transition seamlessly to a post-launch operating environment
    • Identify key data requirements (internal and third party) to support assumptions and financial reporting
    • Define controls, audit readiness and close process for post-launch

    Post-launch assistance and outsourcing

    Shifting from pre-launch to product distribution? Let’s make it seamless.

    • Accumulate and analyze key data to maintain GTN model and assess product sales and cost activity
    • Support contracting and pricing decisions with deep insights into distribution and reimbursement channels
    • Maintain accurate gross to net balance sheet, profit and loss, journal entries, accounts receivable roll-forwards and other ad-hoc reporting
    • Assist with pre-close cross-functional meetings and timely close process
    • Provide audit readiness and support
    • Supply ad-hoc analysis, revenue forecasting and supporting pricing and contracting decisions

    The bottom line

    Whether you are months away from launching your first product, or in the midst of a product’s life cycle and looking to maximize the accuracy and efficiency of your existing GTN function — we are here to help.