✔ Brazil SFE®: What is IQVIA PPP® - Pharmacy Purchase Price?

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What is IQVIA PPP® - Pharmacy Purchase Price? | Pharmaceutical Retail Market

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The IQVIA PPP® (Pharmacy Purchase Price) methodology considers the average discount for each product presentation, applied to Gross Demand at the factory price.

It is important to clarify concepts that are always used. For example, with regards to Sell-in and Sell-out , these are the ways in which companies provide the data to pharmaceutical audit provider companies like IQVIA and Close-Up . Sell-in is everything the pharmacy buys from distribution and Sell-out involves direct sales without distribution.

What is Price?
What is List Price?
What is Net Price | Net Price?
What is List Price?
What is Factory Price?
What is PPP Price - Pharmacy Purchase Price?
What is CPP Pricing - Customer Purchase Price?
What is PMC Price - Maximum Consumer Price?

Once we understand the basic concepts above, we can understand that price indicators also deserve special attention. The PPP – Pharmacy Purchase Price – is the Pharmacy Purchase Price , and is the most used by distributors. With this information, we can find out the discount that the pharmacy received when it purchased the item through the distributor.

Saiba também:

O que é YEAR (Ano)?
O que é Penetração?
O que é MTH (Monthly) – Dados Mensais Brutos?
O que é MQT (Moving Quarter) – Trimestre Móvel?
O que é TRIM (Trimestre) no Calendário?
O que é MAT - Moving Annual Total?
O que é YTD - Year to Date?
O que é QTD - Quarter to Date?
O que é MTD - Month to Date?
Todos os Acrônimos, Termos ou Siglas
O que é o Trimestre Atual? | What is the Current Quarter?
O que é Mês Atual? | What is the Current Month?

There is only PPP for medicines, everything that has a factory price, which is the manufacturer's price, updated annually, controlled by the Medicines Market Regulation Chamber (CMED), updated monthly by the ABCFARMA price list .

Remembering that the rule of Tax on Circulation of Goods and Services ( ICMS ) of the state of São Paulo will be extended to the whole of Brazil, so the ICMS will be 18% for medicines, with the exception of generics which have 12% ICMS .

The Consumer Sale Price is exactly the price charged in the store and is weighted according to the demand of each region and measures the entire market, including non-medicines, since Brazilian pharmacies currently have more than 150 thousand SKUs ( Stock Keeping Unit).

Products are divided and grouped into categories:

OTC - Over The Counter, which involve:

OTCs - Non-Prescription Medicines, plus vitamins and eye drops;
RX - Crossed medications;
Generics ;
Similar ;

Consumer Health - which includes PAC - Personal Care - everything related to personal care, hygiene, dermocosmetics and cosmetics;

PC - Patient Care : Patient care, such as blood glucose strip, blood pressure monitor, nebulizer, baby and adult diapers);

NTR - Nutritional: Child, adult and geriatric nutrition, as if it were the food part within the pharmacy.

There is still a new name for medicines, trade. These are those that have discounts above 50% when selling to the distributor, with a focus on the POS - Point of Sale. No promotion or advertising in other media.

But there is another segmentation into 4 levels, which basically classifies medicines according to the system in which they act in the body:

Level 1 : Therapeutic Class, e.g.: musculoskeletal ;

Level 2: Anti-Inflammatories, Antirheumatics, Muscle Relaxants – which describes the medicinal action;

Level 3 : Details the drug action;

Level 4 : Specifies whether it is an association of substances, molecules and the route of administration.

Better understanding the definitions used by the market:

Pharmacy Chains are those stores that have from six National Registers of Legal Entities (CNPJs) with the same root.

Associativism and Franchises involve the networks of the Brazilian Federation of Associativist Networks, independent of Pharmacies ( Febrafar ) and Farmacas , for example.