Neoforma Pharmaceutical Contract Management Solution

IdealECP™

Agenda

Solutions Overview Neoforma Ideal Systems Neoforma and Ideal Systems Relationship Why Ideal Systems and IdealECP™

Why Is Rebate Validation Important? Challenges IdealECP™ Features and Benefits

Product Overview Questions and Answers

Solutions Overview

Neoforma Supplier Overview

Vision: To help the healthcare supply chain operate more efficiently, by

providing Supply Chain Management Solutions. Solutions:

Neoforma Pharmaceutical Market Intelligence HPIS Med/Surg Market Intelligence Neoforma Med/Surg Contract Management Solution Neoforma Pharmaceutical Contract Management Solution

Company: 300 employees Formed in 1996 Located in San Jose, CA

Ideal Systems Overview

Vision: Drive continual process improvements in the Life Sciences industry

through the expert design and delivery of technology based business solutions.

Solutions: IdealECP™ Claims Validation and Processing IdealEDI™ Wholesaler Communications IdealGP™ Government Pricing IdealBP™ Ideal Systems’ Best Practices Methodology

Company: Employees average 12 years pharmaceutical industry experience Formed in 1994 Located in Philadelphia, PA

Ideal System’s Client List

AstraZeneca* Merck

Bayer Pharmaceutical Novartis*

Centocor* Pfizer*

GE Healthcare/Amersham Premier

GlaxoSmithKline Sanofi -Aventis*

Johnson and Johnson Wyeth*

*Current Ideal Customers running IdealECP™Ideal works with Clients Pharmaceutical Divisions

Neoforma and Ideal Systems Inc.

What is the relationship between Neoforma and Ideal Systems? Neoforma is the Exclusive Sales Agent for the IdealECP™ product. Ideal Systems provides professional services, maintenance and

support of the product. Why did Neoforma partner with Ideal Systems?

Neoforma is committed to driving supply chain management efficiencies.

Provide Branded Pharmaceutical Manufacturers with a Contract Management Solution that has proven value and savings.

Expand Neoforma products and services to Pharmaceutical suppliers.

IdealECP™ is a packaged software solution in the Pharmaceutical market that performs prescription level validation for rebate processing.

Why IdealECP™?

Performs prescription level validation for rebate processing Provides NCPDP file format for ease of data mapping Customizes validation rule sets to meet business needs Integrates seamlessly with any contract management system Validates summarized data for submission against contracts,

products, and plans Generates real-time advanced reconciliation reports Proven value, savings, and satisfaction for current clients

Why Is Rebate Validation Important?

Demonstrate fiscal responsibility: Reconcile all of the data with invoices Monitor and verify contract compliance

Process challenges: High volume of data and quality control Complex contracts Inaccurate processing of rebate submissions and higher

rebate/claim Identifying changes in plans and plan eligibility Inconsistent availability or inaccurate reconciliation reports IT/Business resources constraints

Why do Manufacturers Need a Validation Product?

Contracting Business Process

Develop strategy

Develop Contract

Approve Contract

Activate Contract

Pay Rebate

EvaluatePerformance

Rebate Payment Business Process

Receive data tape from PBM

Load data tapeValidate Script level

data

Review disputed lines

Validate summary data

Review summary data

Validation complete

Pay rebate

Summarize data

Summary LinesMarket Share

Lines

NCPDP Extract

Only Accepted Lines Included

NCPDP file(s)Detail Lines

Market ShareLines

Creation ofMaps

Perform Script Validations

Validate Summarized Submission Against Contracts / Products

/ Plans

Accepted Summary Lines

RejectedSummary Lines

Fix Errors / Accept

Work Off Contract Errors

Work Off Errors

Fix, Override

Summarized Detail Lines

Reject

Failed Detail Lines

IdealECP™ Data Scrubbing Process

IdealECP™ Benefits

Validate all prescription-level data Maximize rebate savings potential Control your data scrubbing process

Manage your PBM partnerships Provide balance of power in negotiations

Real-time reports View summarized data, and reconciliation reports Provide reliable data into your data warehouse

Secure Environment Own the data - secured in your environment

Seamless Integration Integrate with any Contract Management System

IdealECP™

Questions & Answers