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 Evaluate Performance

Rebate Payment Business Process Receive data tape from PBM Load data tape Validate Script level data Review disputed lines Validate summary data Review summary data Validation complete Pay rebate Summarize data

Summary Lines Market Share Lines NCPDP Extract Only Accepted Lines Included NCPDP file(s) Detail Lines Market Share Lines Creation of Maps Perform Script Validations Validate Summarized Submission Against Contracts / Products / Plans Accepted Summary Lines Rejected Summary 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