Here's my December roundup of noteworthy news from the Drug Channels universe.Find out who's been naughty and who's been nice at McKesson Corp. (NYSE:MCK). Plus, news about a new FTC commissioner who's not fond of Pharmacy Benefit Managers (PBMs); New York tries to save money with the AWP rollback; and the launch of a new mail-order pharmacy. Ho ho ho!
MCKESSON IN THE NEWS
McKesson Wins Bid To Keep Rite Aid Drug Distribution Pact
McKesson retains its position as brand drug wholesaler to Rite-Aid (NYSE:RAD) "under a contract that provides the major retail pharmacy chain 'better economic terms' than the companies' previous arrangement." Reduce margin, retain business. C'mon, people, move along, nothing new to see here.
Executives Enjoy 'Sure Thing' Retirement Plans
Heads I win, tails I win. The Wall Street Journal reports on supplemental executive retirement-savings plans with guaranteed fixed returns regardless of market conditions. Has the Journal ever published an article about excessive executive compensation that did NOT mention McKesson (NYSE:MCK)? Previous example here.
U.S. Wants Convicted Ex-McKesson Chairman McCall Jailed at Once
"Former McKesson Corp. Chairman Charles McCall, convicted last month of securities fraud, should be jailed immediately for violating the terms of his release by failing to report a 2006 arrest for soliciting a prostitute, prosecutors said in a court filing." WTF?
IN OTHER NEWS
Obama FTC Nominee Brill Has Taken On Drug-Benefit Managers
A Senate panel approved Federal Trade Commission (FTC) nominee Julie Brill, who "developed a reputation as a PBM and drug-manufacturer watchdog during a two-decade career in state government." NCPA cheers. Keep an eye on the FTC in 2010.
State cuts put small drugstores in peril
"Albany’s deficit reduction plan calls for $18.5 million in savings from Medicaid and Elderly Pharmaceutical Insurance Coverage (EPIC) pharmacy reimbursement rates. What made those cuts possible was a September federal rule that changed the definition of the Average Wholesale Price..." As I predicted in AWP Goes Boom, commercial payers have adjusted contract while strapped states took advantage of the potential cost savings from a rollback.
Columbia House Launches Subscription Meds Program
Music and DVD mail-order giant Columbia House is entering the mail-order pharmacy business! From the press release:
"This is the best way to enjoy all the top medications by today’s pharmaceutical superstars at a low, low price," said Columbia House spokeswoman Sandra Farrell. "There’s no more waiting in line for the latest releases at the pharmacy, and because Columbia House sells directly to the consumer, you can kiss Dr. Middleman goodbye."Neat-o!