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Generating More Independent PharmacyCustomers by Offering CompoundingIndependent Pharmacy Case Studies

2ContentsPart I: Introduction: Why is Compounding a GreatOpportunity for Independent Pharmacy Owners3Part II: Independent Pharmacy - CustomerRetention Obstacles5Part III: 10 Elements of Independent PharmacyCompounding Success7Part IV: Independent Pharmacy Case Studies9Part V: Conclusion and Additional Resources22Generating More Independent Pharmacy Customers byOffering Compounding

Part I: Introduction: Why is Compounding a GreatOpportunity for Independent Pharmacy Owners?Independent pharmacy owners are quickly discoveringthat compounding is becoming an important avenuefor driving business growth. While the idea of usingcustom formulations to accommodate specific patientneeds can be exciting, the thought of implementingthis tedious process can be daunting and intimidating.At the end of the day, the million-dollar question is: canproviding compounding services help independentpharmacy owners make more money?Through our industry expertiseand relationships with thehundreds of pharmacy ownerswe work with, PharmacyDevelopment Services (PDS)has curated best practices forindependent pharmacy ownerswho want to add compoundingservices to grow their business.Generating More Independent Pharmacy Customersby Offering Compounding3

This ebook will address the following topics:1. How does compounding drive business revenue?2. How do independent pharmacy owners allocate thetime needed for compounding?3. What tools do pharmacy owners use to track successof their compounding activities?4. How can compounding drive a constant flow of newpatients?5. Why is community outreach so important togenerating revenue from compounding?6. How do independent pharmacies get started usingcompounding and keep generating new business?7. What trainings and resources are available forcompounding services?Generating More Independent Pharmacy Customersby Offering Compounding4

Part II: Independent Pharmacy - CustomerRetention ObstaclesBefore we dive into the details of compounding forindependent pharmacies, let us first frame the problemthat pharmacy owners are working to solve usingcompounding.Traditionally, large chains have had an advantage oversmall independent pharmacies because of their largegeographic reach, brand name recognition andconsistent flow of new customers.Chain pharmacies don’t typically struggle to winevery customer who walks through their doors Generating More Independent Pharmacy Customersby Offering Compounding5

As an independentpharmacy owner, youunderstand theimportance of customerretention. Losing yourSuccessful independentpharmacies have long thrived byoffering both niche and nontraditional medical solutions andservices that aren’t typically metby the traditional approach tofilling prescriptions.patients to chainpharmacies will hurtyour bottom line, butmost importantly, it willmake it difficult to growyour business. You haveto find a way to offersomething unique thatothers don’t offer, tocreate customer loyalty.By utilizing compounding,independent pharmacies have anupper hand, because they canprovide customized solutions tohelp patients who can’t toleratecertain medications and providehelp to those who wouldotherwise suffer due to allergicreactions or having to take a drugin a different form.Generating More Independent Pharmacy Customersby Offering Compounding6

Part III: 10 Elements of IndependentPharmacy Compounding SuccessThrough interviews with independent pharmacy ownerspaired with our own research and close partnership withPDS members, we identified 10 common traits ofpharmacy owners who successfully use compounding.Independent Pharmacy Owners WhoSuccessfully Use Compounding 1. Are willing to make financial investments in equipment thatenables them to fill a high volume of prescriptions and offer awide range of compounding services2. Empower their technicians to fully own compounding in theirpharmacy and manage all key aspects, includingrelationships, billing, reporting, etc.3. Arm their teams with ready-to-use marketing materials forpatients, as well as, formula worksheets for both standardand unique products4. Monitor, analyze and understand the key performance metricsassociated with compounding and it’s impact on businessresults.5. Market compounding services directly to the doctors in theircommunity who are prescribing custom treatments, ensuringa steady stream of referralsGenerating More Independent Pharmacy Customersby Offering Compounding7

6. Leverage compounding as a unique service offering thatsets their pharmacy apart from other neighborhood drugstores7. Don’t try to custom create every medication available, butinstead focus time and resources on high-demand formulasthat drive the best business results8. Build their strategic business plans based on actual dataanalysis of their compounding activities9. Continuously focus on improving their compoundingbusiness by participating in webinars and trainings that willtake their compounding efforts to the next level10. Connect with other compounding pharmacies; shareideas, build relationships and focus on advancingcompounding as a whole, rather than trying to compete withother compounding pharmacies solely based on priceDiscover networking strategiesfor independent pharmacyowners Download your free eBook!Generating More Independent Pharmacy Customersby Offering Compounding8

Part IV: Independent Pharmacy CaseStudiesALPHA CARE PHARMACY:Staying Focused on the GoalIn 2014, Alpha Care Compounding Pharmacyand Wellness Oasis had started its first year ofbusiness in their second location in Brock,Texas.It had been an extremely challengingyear, but the company had been able to stayfocused on their goal--to grow theircompounding business with the support oftheir PDS team of a Performance Specialistand Business Coaches.Generating More Independent Pharmacy Customersby Offering Compounding9

Differentiation through NICHE SERVICESThe owner of Alpha Care Pharmacy, Catherine Oseni,had been striving to position her company as aforward thinking, modern-day pharmacy offeringpersonalized care. Alpha Care is unique because ofit’s focus on healthy lifestyle, nutrition, vitamin andmineral supplements, and nutraceuticals, to promotelong-term health.Much of the pharmacy’s practiceconcentrates on preventative healthcare that helps to keep the body’ssystems strong and healthy throughnutrition and the proper use ofmedication. It also providesphysicians and patients with highquality custom compounds,education on how to leverage them,and professional support,unmatched in the industry.Generating More Independent Pharmacy Customersby Offering Compounding10

Educational SeminarsWith the help of her dedicated PDS Team, Osenideveloped monthly educational seminars thatpromoted custom medications to the localcommunity.After just a few months of conducting free, thirtyminute sessions with potential customers, AlphaCare Pharmacy was able to position itself as thego-to community pharmacy, known for providingcustom medications that were unattainableanywhere else.“Compounding has helpedgrow my business and theincrease in prescriptions andconsultations has led me tohire another full time pharmacytech to complement myalready busy compoundingtechnician.” Catherine Oseni, AlphaCare PharmacyGenerating More Independent Pharmacy Customersby Offering Compounding11

The Art of Compounding Webinar SeriesAfter attending The Art of Compounding: 100/200 Series,Oseni and her team learned how to grow different areas oftheir compounding practice through simple, easy to marketcompound formulas, marketing strategies and templates forthe compounding practice.They also learned to custom compound medications intovarious dosage forms - creams, suppository, or capsule matching the prescription to each patient's unique needs andproviding tailored solutions for various customer segmentsincluding pediatric and geriatric patients.Expansion and Future PlansAs a result of increased prescription volume fromimplementing compounding services, Alpha Care Pharmacyhas experienced fast and exponential growth, allowing Osenito hire another full-time pharmacy technician to alleviate theworkload of the existing compounding technician. She iscurrently making plans to expand her compounding lab toaccommodate the growing demand and tap into newcompounding models.Generating More Independent Pharmacy Customersby Offering Compounding12

BREMO PHARMACY:Embracing Expansion in the CommunityBremo Pharmacy joined PDS as a Member in2013 with a goal to grow their business andmake each of their pharmacies independentlyprofitable.The Bremo Pharmacy team immersedthemselves in several PDS programs, puttingthe main focus on growing their compoundingbusiness.Generating More Independent Pharmacy Customersby Offering Compounding13

On-Site Training with the PDSPharmacy SpecialistPDS Pharmacy Specialist, Dr. Lisa Faastconducted an onsite training for theBremo Pharmacy team, introducing newcompounding techniques and ways toeffectively market them.Dr. Lisa FaastPharmacy Specialist, PDSDr. Faast assessed existingcompounding workflow andrecommended valuable efficiencyimprovements that helped streamlinethe process, which in turn, allowed fillingmore compounds to accommodateincreased demand.Simplifying the Pricing StructureDr. Faast found opportunities to simplify the pricingstructure, allowing the Bremo Pharmacy team to providecustomers with quick and accurate quotes.Introducing a simple equation for calculating the price of acompound, helped reduce stress and decreased theamount of time associated with filling prescriptions.As a result, pharmacy employees began spending moretime working on what really matters to their customers.Generating More Independent Pharmacy Customersby Offering Compounding14

The Biggest WinPurchasing records from another local pharmacy that wasexiting the compounding business was one of BremoPharmacy’s biggest wins. Dr. Faast helped draft a buyingproposal which resulted in the winning bid and contributed totripling the volume of compounds!With process improvements guided by Dr. Faast, BremoPharmacy was able to attain their desired number of newprescriptions, and as a result, expanded compoundingfacilities and hired an experienced pharmacy technician tosustain continued growth.“Without Lisa's compoundingtraining visit, we would nothave had the confidence orfoundation to take on thismuch business in such a shortperiod of time.” Catherine Cary, BremoPharmacy.Generating More Independent Pharmacy Customersby Offering Compounding15

ECHO PHARMACY: “Finding a New Supply ofCheese”Echo Pharmacy joined PDS in 2014 with the hopes ofimproving their business financially. Shortly afterbecoming a PDS member, pharmacy owner, BryanMcCutcheon, realized that successful implementationof cutting-edge programs didn’t have to fall on hisshoulders alone.He learned that his whole team would need tobe motivated in order to build a strongfoundation for growth.Generating More Independent Pharmacy Customersby Offering Compounding16

Regional Training Programs andPDS Resource LibraryIn order to achieve greater success as a leader and to createan efficient and scalable infrastructure to keep hiscompounding business growing without losing focus,McCutcheon encouraged his entire team to attend Skills forEffective Supervision, The Lost Art of Business Etiquette, andCustomer Service Guru.These regional trainings, along with unlimited access to thePDS resource library - a plethora of information and bestpractices for implementing pharmacy compounding, jumpstarted Echo Pharmacy’s rapid business growth.Generating More Independent Pharmacy Customersby Offering Compounding17