In this issue:
- Green Monster: The drug manufacturers that are most vulnerable to copay accumulators
- Pop Fly: Express Scripts wants to pop the gross-to-net bubble?
- Foul! Fresh evidence that uninsured consumers pay rip-off cash prices at retail pharmacies
- Strikeout: My $0.02 on Amazon’s decision not to sell drugs to hospitals
P.S. For my daily pitches on the industry’s hits and misses, follow @DrugChannels on Twitter. My recent tweets have covered copay accumulators, the oncology market, drug costs, biosimilars, PBMs, and more.
Which drug makers are most vulnerable to a new cost-shifting maneuver?, Pharmalot/STAT
In January, I predicted growth and controversy in 2018 for copay accumulator adjustment programs. See my overview in Copay Accumulators: Costly Consequences of a New Cost-Shifting Pharmacy Benefit.
Wall Street analysts are now forecasting how accumulators will affect pharmaceutical manufacturers. Ronny Gal of Bernstein projects that by the end of 2018, half of self-insured employer plans will use accumulator adjustment programs. Richard Evans of Sector & Sovereign Research identifies the five manufactures at greatest risk as AbbVie, Actelion Pharmaceuticals, Amgen, Gilead Sciences, and UCB. Heads up!
Wall Street analysts are now forecasting how accumulators will affect pharmaceutical manufacturers. Ronny Gal of Bernstein projects that by the end of 2018, half of self-insured employer plans will use accumulator adjustment programs. Richard Evans of Sector & Sovereign Research identifies the five manufactures at greatest risk as AbbVie, Actelion Pharmaceuticals, Amgen, Gilead Sciences, and UCB. Heads up!
Express Scripts targets Amgen, Lilly migraine drugs in pricing shift, Reuters
Well, pierce my ears and call my drafty. Apparently, Express Scripts is pressing manufacturers of new migraine drugs to “to forego the usual strategy of setting a high U.S. list price, then lowering the cost for health plans through hefty rebates.”
Coincidentally, this Reuters article was published on the same day as The Gross-to-Net Bubble Topped $150 Billion in 2017.
Here's a surprising comment from Steve Miller, chief medical officer of Express Scripts:
Coincidentally, this Reuters article was published on the same day as The Gross-to-Net Bubble Topped $150 Billion in 2017.
Here's a surprising comment from Steve Miller, chief medical officer of Express Scripts:
“If your expectation is that you are not going to actually get that high list price, then don’t do that to patients who have high co-pays. Let’s be more balanced. Let’s get back to where gross-to-net is not so different.”SpongeBob warily approves. Now let’s see what really happens.
Kmart Pharmacy Lowered Its Prices. Why Don't Others?, Consumer Reports
Last week, I analyzed Consumer Reports’ survey of pharmacies’ cash prices for five common generic drug prescriptions. See Why Retail Pharmacies Still Overcharge Uninsured Patients—And What That Means for Amazon.
Intrepid reporter Lisa Gill has just published a follow-up article in the magazine. She finds that uninsured consumers often do pay the quoted cash price. The article also describes disturbing variations in price quotes, even when the price comes from different locations within the same chain. As she notes: “CR shoppers can testify that shopping around for prescription drugs can indeed save you money. But it can also be confusing, unpredictable, and potentially expensive.” Very troubling.
Intrepid reporter Lisa Gill has just published a follow-up article in the magazine. She finds that uninsured consumers often do pay the quoted cash price. The article also describes disturbing variations in price quotes, even when the price comes from different locations within the same chain. As she notes: “CR shoppers can testify that shopping around for prescription drugs can indeed save you money. But it can also be confusing, unpredictable, and potentially expensive.” Very troubling.
Amazon has shelved a plan to sell drugs to hospitals, and insiders say there are two reasons why, CNBC
Regular readers know that I have been skeptical of the overblown Amazon hype. Check out my articles from May (A Reality Check on Amazon’s Pharmacy Ambitions) and November (The Latest on Amazon’s Pharmacy Ambitions—And a Possible Express Scripts Collaboration).
I still believe that Amazon will enter the pharmacy industry, per my observations last week about the cash-pay prescription market. I would never underestimate Amazon, but its impact will take longer and be less disruptive than many people seem to believe.
Jack Nicklaus on the Ohio Neighborhood Where He Fell in Love With Golf, The Wall Street Journal
Today's fun pharmacy fact: Jack Nicklaus's father was an independent pharmacy owner. Before becoming a professional golfer, Nicklaus had been studying to be a pharmacist. You don’t say!
No comments:
Post a Comment