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Notable RedSail Technologies Market Threats
Underpricing of Cash Payments
Relative to Market Benchmarks
Pharmacies are offering cash prices
that are lower than market trends. Many
independent and regional pharmacies do
not have mechanisms in place to monitor
or align their cash pricing strategies with
broader market trends. As a result, they
may undercharge.
Pharmacies Lack Visibility into
Localized Market Dynamics
Few pharmacies consistently track or
adjust cash pricing based on regional
competitors or market signals. Without
this intelligence, they risk mispricing and
missing out on local demand shifts.
Excessive Fees and Lack of Negotiating
Power on Card Processing
Unlike large retail chains, independent pharmacies
lack the leverage to negotiate competitive credit/
debit card processing rates. The industry is opaque,
with hidden fees, sudden compliance paperwork, and
unpredictable charges. Disproportionate transaction
fees become a major cost of doing business.
Pharmacies are vulnerable to vendor exploitation,and
they get charged fees that are well in excess of what
other merchants are paying for similar volumes.
Lack of Credit Attribution When Vouchers
Are Applied
Drug manufacturers are not receiving recognition when their
copay assistance programs are used. Manufacturer-sponsored
copay cards or vouchers are often applied at the register without
clear communication to the patient or pharmacy team that the
drug company helped subsidize the cost. If manufacturers don’t
get “credit” for helping patients afford medication—either in
patient awareness or data reporting—they may scale back these
programs.
Inefficient Utilization of Patient Management
System Alerts
Poor alert design and pharmacist engagement limit actionable
interventions.
While PMS alerts can drive valuable activities like vaccination
reminders, they often fail due to poor integration, lack of training,
or pharmacist alert fatigue and lead to missed opportunities to
deliver clinical services and increase revenue. Pharma companies
could be willing to support these efforts within legal frameworks,
but pharmacies must be able to act consistently.
The following paraphrased “Market Threats” were identified from the Catalyst Pharmacy Podcast,
RedSail Unscripted: Investments That Are Transforming Pharmacy with Josh Howland & Andy Maurer (APR 2025).
For more information, listen to the full Podcast: youtube.com/watch?v=3qakI9gGyEo
Excessive Costs from Dominant
E-prescribing Network Providers
Providers like Surescripts have long
held near-monopoly control over the
e-prescribing space, charging pharmacies
high fees that represent one of the largest
operating expenses after payroll.