From Channel Strategy to Operational Execution: A Guide for Emerging Pharma

When a pharmaceutical startup moves from R&D to commercialization, few decisions are as foundational—or as consequential—as the company’s channel strategy. For emerging pharma, launching a first product is a milestone that triggers a cascade of operational decisions. Who do you sell to? Who do you sell to and through? How your product reaches the patient doesn’t just shape commercial success; it dictates the organizational infrastructure and operations you must establish.

Yet many early-stage companies underestimate how complicated and time-consuming those channel decisions and operational setup activities really are.

What Is a Channel Strategy in Pharma?

In essence, a channel strategy defines who you're selling your drug to and through. Will you sell through a wholesaler, specialty distributor (SD), or direct? Are you utilizing specialty pharmacies (SPs) or retail pharmacies…or a mix of both? Will some products be drop-shipped directly to patients? These aren’t just logistical preferences; they’re strategic decisions tied to your product’s profile and patient journey.

Why Getting It Right Early Matters

Unlike large pharma companies that have mature infrastructure and multiple product lines, emerging pharmaceutical companies have a limited margin for error. Channel strategy is not something that can be easily reversed post-launch. If patients can’t get the drug, or if providers are hesitant to prescribe it due to access or reimbursement hurdles, launch performance can falter.

Channel misalignment often forces companies to expand distribution rapidly, adding new SPs or SDs post-launch. While this is an adaptation, it's also a fire drill. These changes are costly, disruptive, and often stem from not investing enough upfront in strategic alignment between product, patient, and access pathways.

The Operational Implications of Channel Decisions

Every channel strategy brings a web of downstream operational needs. Here are some examples.

Government Program Enrollment

Signing up for programs like Medicaid, 340B, Medicare Part B/D, and Federal Supply Schedule can require enrollment well before launch. Missing deadlines can delay patient access or revenue.

Contracting and Rebates

Specialty and retail pharmacy products influence the types of discounts and rebate structures you’ll need. Different customers (PBMs, managed care plans, government payers) all require unique contract terms that trigger operational workflows.

Pricing Calculations and Reporting

Your channel and contract decisions define which pricing calculations you must support (e.g., AMP, ASP, NFAMP, Best Price), and to which government bodies you must report. Each has its own methodology and compliance risk.

Data Management

Sales, rebate, and chargeback data generated through third-party partners are your responsibility. Ownership, access, and usability of that data become critical for effective validation of claims, calculation of government prices, forecasting of gross-to-net, and support of disputes or audits.

Third-Party Coordination

Most emerging companies will outsource chargeback, rebate and government pricing calculations and validations. However, it's your responsibility to ensure those processes are accurate, timely, and aligned with your internal policies. Misalignment can lead to overpayments, compliance failures, fines, or lost trust.

Build with the End in Mind

It’s tempting to delay operational investments and focus only on getting the product out the door. But this creates risk. Key questions every emerging pharma company should ask early include:

• Do we understand all the operational requirements our channel strategy creates?

• Are we signing up for all the necessary government programs, and in time?

• Do we have clarity on who is responsible for what—internally and across vendors?

• Are we building processes and systems that allow us to validate rebates, chargebacks, and discounts accurately?

• Are we planning for data ownership, access, and analytics from Day One?

Most companies realize too late that their third-party vendor is not delivering what’s needed, or that internal teams were never properly aligned on processes or timelines. Getting things right the first time is cheaper and less disruptive than fixing them after launch.

The Value of a Structured Assessment

A strategic, structured assessment process — typically done 18 to 24 months pre-launch — helps emerging pharma map out these operational needs. This includes evaluating:

• Product and patient profile

• Access and reimbursement environment

• Distribution options

• Contracting implications

• Required government program participation

• Systems, tools, and data infrastructure needs

This doesn’t just prepare companies for launch. It also helps them future-proof their operations for scale, new indications, or evolving market conditions.

Channel Strategy Is an Operational Strategy: Call in the Experts

Your channel decisions shape far more than how a drug moves. They define how your company must operate. For emerging pharma, the leap from scientific breakthrough to commercial execution is steep and paved with operational complexity. Pharosity can help you develop a sound, intentional channel strategy as a first step in building a compliant, scalable, and profitable organization. Contact us for more information.