Every company is concerned about their bottom line. Wouldn’t it be nice to know that your revenue mix is changing before you report to investors? Or even know immediately when your revenue mix starts to change? And, is there a stat that’s more impactful than revenue to most for-profit businesses? Today’s story shows you how a leading pharmaceutical firm tracks revenue impact with Outlier.
Revenue can swing in a positive or negative way pretty quickly and for a variety of reasons. A leading pharmaceutical company set up Outlier in just 15 minutes to their SQL database, which houses all of their revenue data. This pharmaceutical company relies on Outlier to monitor and flag important changes happening with their revenue data. Recently, Outlier found a drop in their revenue due to commercial returns of a high-cost prescription drug in their South American market and reported this decrease in a weekly recap.
Outlier detects a drop in revenue for a leading Pharmaceutical Company
Based on the Outlier story, you can see the drop in revenue, which was 270% below the predicted model. Returns had been stable for a while, impacting only 0.1% of revenue. During this week, the impact was substantially large, affecting 6% of the entire revenue. Outlier can detect a swing either way — no matter how large or small.
When the pharma firm looked at the Outlier Root Cause Analysis feature for the reasons as to why these returns were happening, the answer became clear. There were a large number of returns for a high-cost commercial drug due to product damage in the country of Brazil. The finance team investigated further to determine it was unseasonably warm in Brazil during late January to early February. Several cases of “Drug A” hadn’t been properly cooled during transportation, leading to an unexpected increase in product costs due to the returns.
Without Outlier, the pharma firm would have noticed a dip in revenue, but it wouldn’t have been as easy or quick to understand the specific causes of those returns. Being able to quickly identify the causes of changes in important metrics like revenue is one way an Automated Business Analysis platform can work for other life sciences organizations.
You can identify meaningful trends in your data with Outlier. Without Outlier, these kinds of insights would require hours, days, weeks or months of analysis. Outlier empowers businesses to take a deeper look at their data and uncover unexpected trends that can lead to revenue increases. Sign up for a custom demo to hear how a leading pharmaceutical tracks revenue impact with Outlier.