Drug Channels News Roundup, December 2022: Vertical Integration Updated, Walgreens vs. Pharmacy, Cash-Pay Rx, Curing 340B, and Deductible Season

Whew. It was quite a year—one filled with big deals, big news, and big legislation.

Drug Channels also had a big 2022. We now have 35,000 LinkedIn followers, almost 25,000 email subscribers, and nearly 16,000 Twitter followers.

Thank you, dear readers, for welcoming me into your inboxes and browsers each week. I’ve had a blast writing Drug Channels and hope that you had fun reading it.

Wishing you and your family health and happiness,
Adam

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Ring in 2023 with our final news roundup of the year:

• A vertical integration update

• Walgreens backs away from prescriptions

• Meet a cash-pay pharmacy that’s not owned by a billionaire

• Time to cure or kill 340B?

Plus, Dr. Glaucomflecken helps you celebrate “I met my deductible” season!

Value-Based Care Summit

Value-Based Care Summit
Accelerating Healthcare’s Shift in the Move from Volume to Value
In-Person Event | January 26-27, 2023 | Boston, MA
www.thinc360.com/value

Use promo code VBCDC to save $100. Register Today.

View the Agenda Snapshot.

As healthcare stakeholders continue to prioritize the move to value-based care and aim to provide equitable access to care for all, leaders must develop novel approaches to empower the patient and ensure effective risk-sharing strategies.

The Value-Based Care Summit, produced by The Healthcare Innovation Company (thINc), brings together stakeholders across all healthcare sectors, including payers, providers, and manufacturers to discuss novel approaches, innovative models, and mutually beneficial partnerships to accelerate the journey to value-based care.

Can't miss content highlights including:

• Risk-Sharing and Value-Based Contracting: Examine outcomes-based strategies and innovation in payment arrangements tailored to health plan, provider, and pharma strategies
• Policy and Regulations: Understand key updates from CMMI, ICER, and policy experts on value-based payment models
• Value-Based Digital Solutions: Explore case studies on how to test, design, and scale digital services and ensure technological innovations
• Cross-Stakeholder Partnerships: Foster collaborations to provide patient support, improve health outcomes, and lower total cost of care
• Population Health and Value-Based Care: Leverage real world data and understand social determinants of health to build predictive value-based care solutions for populations
• Care Delivery Transformation: Explore remote care solutions and understand patient needs to implement a value-based care delivery model
• Data and Evidence: Explore data sharing, integration, and infrastructure best practices to support risk-sharing agreements and support data-driven healthcare

Two Dedicated Tracks for Your Focus Area:

• For Payers & Providers
• For Pharmaceutical, Biotech, and Other Manufacturers

Plus Payer, Provider, Pharma Perspectives from:

• Roivant Sciences, Chief Commercial Officer, Amy Mahery
• Moderna's VP Strategic Partnerships, Rani Khetarpal
• Aetna’s, VP, Value Based Solutions, Eric Fennel
• Medica Health Plan's CEO, John Naylor
• BlueCross BlueShield of South Carolina's VP, Value-Based Care Programs and Contracting, James Grana
• Geisinger's VP of Digital Transformation, Rebecca A. Stametz
• And more!

Use promo code VBCDC to save $100. Register Today.

View the current Speaker Faculty and register today.

*All registrations subject to review by the thINc team. Cannot be combined with other offers, promotions or applied to an existing registration. Other restrictions may apply.

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The content of Sponsored Posts does not necessarily reflect the views of Pembroke Consulting, Inc., Drug Channels, or any of its employees. To find out how you can promote an event on Drug Channels, please contact Paula Fein (paula@drugchannels.net).

The 340B Program Climbed to $44 Billion in 2021—With Hospitals Grabbing Most of the Money (rerun)

This week, I’m rerunning some popular posts while I prepare for today’s live video webinar: Drug Channels Outlook 2023.

ICYMI, the Health Resources and Services Administration (HRSA) finally got tired of my Freedom of Information Act (FOIA) requests. Shortly after I published the article below, HRSA posted public data about 340B covered entity purchases on its website. Alas, HRSA neglected to post any historical data. Fortunately, my 2022 FOIA efforts (described below) extracted purchases by 340B covered entity type for 2015 through 2021.

Click here to see the original post and comments from August 2022.

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Here’s a summer surprise for fans of the 340B Drug Pricing Program: Drug Channels has just obtained the 2021 figures from the Health Resources and Services Administration (HRSA)! Even better, my Freedom of Information Act (FOIA) request was able to pry out detailed purchases by covered entity type.

The data tell a familiar story. For 2021, discounted purchases under the 340B program reached a record $43.9 billion—an astonishing $5.9 billion (+15.6%) higher than its 2020 counterpart. Hospitals accounted for 87% of these skyrocketing 340B purchases.

What’s more, the difference between list prices and discounted 340B purchases also grew, to $49.7 billion (+$7.0 billion). This figure approximates the money collected by 340B covered entities.

340B advocates have been screaming that “drug companies are cutting 340B,” but the data tell a very different story. Only in the U.S. healthcare system can billions more in payments and spreads be considered a cut.

Read on for full details and analysis, including the opportunity to download your very own copy of the raw data from HRSA.

Five Surprising Facts About GoodRx and the Discount Card Market (rerun)

This week, I’m rerunning some popular posts while I prepare for tomorrow’s live video webinar: Drug Channels Outlook 2023.

Click here to see the original post and comments from October 2022.

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Last month, IQVIA quietly released a fascinating new report on discount cards. (Link below.) The research was sponsored by the Association for Accessible Medicines (AAM).

Below, I highlight three unexpected findings from the data regarding GoodRx’s market position, when people use discount cards, how much they save, and why PBMs should still be worried about this market.

There’s a lot to unpack about the growing discount card market. As you’ll see, this report provides valuable insights about a market that seems stacked against patients.

The Shady Business of Specialty Carve-Outs, a.k.a., Alternative Funding Programs (rerun)

This week, I’m rerunning some popular posts while I prepare for tomorrow's live video webinar: Drug Channels Outlook 2023.

In the four months since I published the article below, the issues with alternative funding programs have hit the mainstream press. Check out last week's article from Kaiser Health News: Employers Use Patient Assistance Programs to Offset Their Own Costs.

Click here to see the original post and comments from August 2022.

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Watch out! Plan sponsors are getting even bolder in their attempts to grab financial support intended for patients. The latest scam is called a specialty carve-out.

Here’s the game: A commercial plan eliminates coverage for all specialty drugs. Beneficiaries are then shunted over to a charitable foundation, because they are now disguised as uninsured—at least for specialty drugs. Naturally, the vendor skims a healthy share of the charity’s money.

In addition to the ethical and compliance issues, some vendors raise safety risks by sourcing prescriptions from non-U.S. pharmacies as a backup.

The Orwellian euphemism for this “benefit” design: alternative funding program.

A new survey reveals that an astounding four out of 10 commercial plans are already using, or exploring the use of, these specialty carve-out programs. Yikes.

Read on for an overview of these shady programs—and the many problems they are creating.

Texas Shows Us Where PBMs’ Rebates Go (rerun)

This week, I’m rerunning some popular posts while I prepare for this Friday’s live video webinar: Drug Channels Outlook 2023.

Click here to see the original post and comments from August 2022.

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Over the weekend, the U.S. Senate passed a massive overhaul of the Medicare Part D program. If passed into law, these changes will have many unintended consequences, but will not address the warped incentives baked into our current rebate system.

This makes it a good time to review the murky, little-seen economics of how commercial plan sponsors and payers access the billions of dollars in manufacturer rebates and fee that are negotiated by their pharmacy benefit managers (PBMs).

Our analyses of new Texas-mandated PBM disclosures reveal that plan sponsors receive most of the rebates, fees, and other payments from manufacturers. However, PBMs retain an unexpectedly large share of these payments—while the patients whose prescriptions generated these funds get almost nothing.

In other words, plans spread around manufacturers’ rebates and fees to offset premiums for all beneficiaries, rather than lower out-of-pocket costs for drugs that plans buy at a discounted price. Perhaps Congress will someday get around to corralling these funds.

The Inflation Reduction Act: Three Unintended Consequences for Biosimilars, Health Plans, Providers, and Pharmacies (rerun)

This week, I’m rerunning some popular posts while I prepare for this Friday’s live video webinar: Drug Channels Outlook 2023.

Click here to see the original post and comments from September 2022. During Friday’s webinar, I’ll be sharing my updated thoughts about the IRA’s impact on manufacturers, Part D plans, and patient behavior.

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By now, you have already read innumerable articles explaining what’s in the new Inflation Reduction Act of 2022 (IRA; P.L. 117-169).

Today, I want to highlight three significant—and presumably unintended—drug channel consequences from the hastily-passed IRA legislation. These include disruption to the now-booming biosimilar market, the prospects of physician/hospital vertical integration that will raise commercial healthcare costs and expand 340B, and the need for complex new processes to administer the IRA's lower pharmacy reimbursements.

I can only barely scratch the surface in this article, so feel free to share your own thoughts in the comments below or on social media.

At this point in our country’s history, you might think Congress would have learned the immutable law of 730-page bills: Legislate in haste, repent at leisure.

Health Insurance Startup CEOs’ Sky-High Compensation Figures Are Deceiving

Today’s guest post comes from Leslie Small, Managing Editor, and Jinghong Chen, Reporter, at Health Plan Weekly, published by AIS Health, the journalism division of Managed Markets Insight & Technology, LLC. (MMIT).

Leslie and Jinghong discuss the terms of health insurance startups CEOs’ compensation packages. They explain why the reported CEO total compensation numbers are deceiving.

Access the full findings from AIS’ Healthcare Executive Compensation Survey here.

Read on for Leslie’s and Jinghong’s insights.

Small Pharmacies Walk Away from Medicare Part D’s 2023 Preferred Networks

In yesterday’s post, I highlighted the largest pharmacy chains that will participate in the 2023 Medicare Part D prescription drug plans (PDP).

Today, I update our annual analyses of how smaller pharmacies will participate as preferred cost sharing pharmacies via the pharmacy services administrative organizations (PSAOs) that represent them in negotiations with plans.

As you will see below, the largest PSAOs will move further away from preferred networks in 2023. What's more, plans from Aetna, Humana, WellCare, and UnitedHealthcare will not have any independent pharmacies participating via PSAOs as preferred pharmacies.

Below we provide details about the PSAOs owned by the three major wholesalers—AmerisourceBergen, Cardinal Health, and McKesson—along with information about AlignRx, the largest independent PSAO. There are some differences in strategy, as you will see from our handy scorecard below. However, smaller pharmacies’ near-total rejection of preferred networks shows that the more the PBMs talk, the less independents can take.

What else is ahead for 2023? Find out during my upcoming live video webinar, Drug Channels Outlook 2023, on December 16, 2022, from 12:00 p.m. to 1:30 p.m. ET. Click here to learn more and sign up.

CVS, Walgreens, and Walmart Keep Position in 2023 Part D Preferred Networks—While Kroger Bails Over its Express Scripts Blowup

In Preferred Pharmacy Networks in 2023’s Medicare Part D Plans: Cigna, CVS Health, Humana, UnitedHealthcare, WellCare, and More, I highlighted how those networks have taken over the world of stand-alone Medicare Part D prescription drug plans (PDP) and become a major presence in Medicare Advantage prescription drug (MA-PD) plans.

Today, I examine the seven largest retail chains’ 2023 participation in the 22 major 2023 Part D preferred networks that the eight largest plan sponsors will offer. As always, I offer you a handy table for scoring each chain’s participation and changes from 2022 to 2023.

As you’ll see, Kroger’s decision to exit Express Scripts commercial pharmacy networks has had negative ramifications for its Part D position. Kroger will be out-of-network—not just non-preferred—in the major Part D networks for which Express Scripts acts as the PBM. That will be  a key factor behind its $1+ billion revenue hit.

Speaking of 2023, please join me for my upcoming live video webinar, Drug Channels Outlook 2023, on December 16, 2022, from 12:00 p.m. to 1:30 p.m. ET. Click here to learn more and sign up.

Developing a Channel Strategy that Optimizes Gross-to-Net

Today’s guest post comes from Deepak Thomas, Founder and CEO of PHIL Inc.

Deepak explains how a manufacturer’s net revenues are affected when that manufacturer helps patients access, afford, and adhere to medication therapy. He provides three suggestions for building a channel strategy to optimize gross-to-net while also improving clinical, financial, and operational outcomes.

Click here to learn about PHIL’s access and commercialization solutions.

Read on for Deepak’s insights.

Drug Channels News Roundup, November 2022: Mark Cuban vs. Elon Musk, Lessons from Semglee, Gen Z vs. Pharmacy Careers, 340B Transparency, and I ♥ the 90s

I hope everyone enjoyed the Thanksgiving holiday! Now that you’ve stretched your stomach, stretch your mind with some food for thought. In this issue:

• Mark Cuban schools Elon Musk on PBMs

• Market access lessons from Semglee

• Gen Z rejects the pharmacy career path

• A potent call for 340B transparency

Plus, get ready to love the ‘90s again!

P.S. Join my more than 34,000 LinkedIn followers for daily links to neat stuff. If you haven't quit Twitter, you can also find my daily posts at @DrugChannels on Twitter, where I have more than 15,500 followers.

Please join me for my upcoming live video webinar, Drug Channels Outlook 2023, on December 16, 2022, from 12:00 p.m. to 1:30 p.m. ET. Click here to learn more and sign up.

Engage Specialists in Their Workflow With GoodRx Provider Mode

Today’s guest post comes from Bansi Nagji, President of Healthcare at GoodRx.

Bansi explains how GoodRx Provider Mode delivers a prescription savings flow that offers health care professionals (HCPs) efficient access to the information they need at critical moments of care.

Click here to learn how GoodRx Provider Mode can help manufacturers reach and engage HCPs.

Read on for Bansi’s insights.

Behind the GoodRx-Express Scripts Partnership: How PBMs Profit from Discount Cards in Pharmacy Benefits

Last week, GoodRx announced that it would become the exclusive prescription discount card provider for the commercial beneficiaries of Cigna’s Express Scripts. Links below.

The rise of discount card pricing within pharmacy benefit plans is a positive development. Patients get access to market prices that can  be lower than their PBM’s contracted rate. All out-of-pocket spending with a discount card counts toward a patient's deductibles, and all prescription activity gets captured.

However, I suspect few people understand that placing discount cards within the pharmacy benefit enables a PBM to monetize a new fee stream from the card vendor. Below, I walk through this booming business and highlight some of the conflicts and contradictions underneath the coconuts.

I’ll cover what’s next for PBMs and discount cards during my upcoming live video webinar, Drug Channels Outlook 2023, on December 16, 2022, from 12:00 p.m. to 1:30 p.m. ET. Click here to learn more and sign up.

Cell and Gene Therapy Roundup: What the Road to Success Looks Like

Today’s guest post comes from Lung-I Cheng, Vice President of Cell & Gene Therapy at AmerisourceBergen.

Lung-I discusses advancements in cell and gene therapy and explains how to tackle the challenges facing manufacturers, providers, and patients.

Click here to learn about AmerisourceBergen’s Cell and Gene Therapy solutions for biopharma companies, providers, and patients.

Read on for Lung-I’s insights.

Drug Channels Outlook 2023 (NEW Live Video Webinar)

Dr. Adam J. Fein, CEO of Drug Channels Institute (DCI) and the author of Drug Channels, invites you to join him for a new live video webinar:

Drug Channels Outlook 2023
Friday, December 16, 2022
12:00 p.m. to 1:30 p.m. ET.

This page describes the event and explains how to purchase a registration to the live event. The webinar will be broadcast from the Drug Channels studio in beautiful downtown Philadelphia.

WHAT YOU WILL LEARN

Join Dr. Fein as he helps you and your team get ready for 2023 by outlining key issues and uncertainties that will surely affect your planning. This event can be both a capstone of your annual learning and a touchpoint for the future. Dr. Fein will draw from exclusive information found in DCI’s industry economic reports.

During the event, Dr. Fein will share his latest thinking on a wide range of topics, including:

• Update on the retail pharmact market

• The Medicare Part D Redesign

• What's next for the Inflation Reduction Act of 2022

• Vertical integration and consolidation trends

• PBM industry developments and government actions

• Disruption from discount cards and cash-pay pharmacies

• Predictions for biosimilar Humira competition

• The latest on copay accumulators and maximizers

• Likely 340B Drug Pricing Program developments

• Hospitals and health systems in the pharmacy channel

• The primary care M&A boom

• And more!

As always, Dr. Fein will clearly distinguish his opinions and interpretations from the objective facts and data. PLUS: During the webinar, Dr. Fein will give participants an opportunity to unmute themselves and ask live questions. The webinar will last 90 minutes to accommodate audience questions.

After the event, every registrant will receive a link to download the complete slide deck and have an opportunity to watch a replay of the live event.

Read on for full details on pricing and registration.

The Consolidated Drug Channel and Cash-Pay Drugs: My Podcast with a16z's Julie Yoo

I recently joined Julie Yoo on Bio Eats World, a podcast from legendary venture capital firm Andreessen Horowitz (also known as "a16z"). Julie is a General Partner at Andreessen Horowitz.

We chatted about the current state of the U.S. drug channel, the roles and controversies around pharmacy benefit managers (PBMs), GoodRx, Mark Cuban’s cost-plus pharmacy, the 340B Drug Pricing Program, and much more. I also shared some thoughts on opportunities for entrepreneurs in such a consolidated space. The episode is about 36 minutes long.

The podcast audio is embedded below, along with links to the episode on major podcast platforms.

Enjoy!

P.S. Let me know if you’d like to see more audio/podcast content on Drug Channels.

Innovate4Outcomes: Collaborating to Solve Antimicrobial Resistance

Today’s guest post comes from Matthew Balogh, Head of Digital Marketing at Melinta Therapeutics.

Matt discusses the ongoing global problem of antimicrobial resistance (AMR). He suggests that lessons learned from the COVID-19 pandemic can inform both innovation in AMR therapies and our understanding of AMR.

To learn more about the global challenge of AMR and brainstorm solutions, request an invitation to Innovate4Outcomes^®. This virtual event is presented by OptimizeRx in collaboration with Melina Therapeutics.

Read on for Matt’s insights.

Preferred Pharmacy Networks in 2023’s Medicare Part D Plans: Cigna, CVS Health, Humana, UnitedHealthcare, WellCare, and More

Open enrollment is under way for the 2023 Medicare Part D plans. Our exclusive analysis of Center for Medicare & Medicaid Services’ (CMS) data reveals that preferred cost sharing pharmacy networks will maintain their dominance as an established component of Part D benefit design.

For 2023:

• 98% of stand-alone Medicare Part D prescription drug plans (PDP) will have a preferred network.

• 52% of Medicare Advantage prescription drug (MA-PD) plans will have a preferred network.

Below, I provide historical data on preferred networks’ growth and update the top companies’ 2023 offerings.

The largest companies made only minor changes to their 2023 stand-alone plans, after streamlining their 2022 plans. I also update our analysis of the prevalence of preferred networks in three different types of MA-PD plans.

In upcoming articles, I’ll investigate what we can deduce from chain and independent pharmacies’ participation in the major 2023 preferred networks.

How the Therapy Warranty Model Shifts the Paradigm of Therapy Success

Today’s guest post comes from Brooks Wildasin, Vice President of Product Management at CareMetx.

Brooks introduces us to CareMetx’s specialty therapy warranty, a specialty patient outcome-based contract model. Download CareMetx’s 2022 Report: The Evolving Landscape of Digital Healthcare Hubs to learn more about digital hub services and CareMetx’s solutions that improve the patient journey.

Read on for Brooks’ insights.

Drug Channels News Roundup, October 2022: Mark Cuban on PBMs, Walgreens & 340B, Biosimilar Boom Update, Physicians vs. UM, and Wellness at Walgreens

Eeek! Time for my Halloween roundup of wicked Drug Channels’ tales. This month’s tricks and treats:

• Eerie! Mark Cuban tells ghost stories about PBMs.

• Shocking! Walgreens terrifies Wall Street with its 340B losses.

• Vampiric! Sink your fangs into Amgen’s fantastic new report on the biosimilar boom

• Wicked! Physicians think payers cast evil utilization management spells.

Plus, Walgreens launches a refreshing new wellness service.

P.S. Join my more than 33,000 LinkedIn followers for daily links to neat stuff. You can also find my daily posts at @DrugChannels on Twitter, where I have more than 15,400 followers.

Innovation Brings Unwavering Patient Support in a New Era of Specialty Medicine

Today’s guest post comes from Megan Marchal, Director of Specialty Pharmacy Strategy at CoverMyMeds.

Megan discusses upcoming specialty medication launches. As she explains, patients will need extra help to overcome the challenges of access, affordability, and adherence.

Click here to learn about CoverMyMeds' patient-centric technology solutions for specialty medications..

Read on for Megan’s insights.

How the Biosimilar Boom Boosts Drug Wholesalers’ Profits

The biosimilar boom for provider-administered drugs continues to accelerate. Net prices in therapeutic classes with biosimilar competition have declined by 60% or more over the past few years. Some major biological reference products have now lost a majority of their unit sales to their biosimilars.

As we explain below, this accelerating adoption also boosts profits for pharmaceutical wholesalers and specialty distributors—particularly when these channel participants can influence which biosimilar version a provider utilizes.

Below, we share our estimates for wholesalers’ gross margins for brand-name, generic, and biosimilar drugs. We then explain the channel dynamics behind biosimilar and generic drugs’ profits. We estimate that for 2022, generics and biosimilars accounted for only about 15% of wholesalers’ U.S. drug distribution revenues, but 77% of total gross profits from U.S. drug distribution.

Read on for the fun financial facts.

Informa Connect’s Trade & Channel Strategies Summit

Informa Connect’s Trade & Channel Strategies Summit
December 12-14, 2022 in Philadelphia, PA
www.informaconnect.com/trade

Don’t miss Informa Connect's Trade & Channel Strategies Summit, coming up December 12-14, 2022 in Philadelphia! Join your colleagues from across the industry and be part of critical, solution-focused discussions designed to help optimize distribution models and channel strategies driven by market dynamics, product types, site of care and reimbursement, all delivered by an expert speaking faculty.

View the agenda to see the complete picture – the program, speakers, and more, and visit www.informaconnect.com/trade for further details and to register. Drug Channels readers will save 10% off when they use code 22DRCH10 and register prior to November 11, 2022.*

You'll attend a Featured Session with Bill Roth, General Manager and Managing Partner, Blue Fin Group, An IntegriChain Company, as he covers Current and Future Trends Impacting Trade and Distribution, a Policy Address, a Wall Street Address, a Partnership Pavilion Panel (3PL, Distribution and Pharmacy), a Distribution Stakeholder Showcase, and an Update from NCPDP.

Additional sessions include coverage on:

• Navigating regulatory reform in the trade & channel space
• Building forward-thinking commercialization and channel strategies for patient affordability
• Maximizing GTN impact
• Future of value-based agreements, measurement, contracting and pull through
• Innovative limited pharmacy networks
• The Drug Supply Chain Security Act
• Emerging distribution trends for a streamlined and efficient model
• Migrating a primary care manufacturer to specialty channel strategies
• Determining the best network for your product - distribution and dispensing partners
• Navigating the payer space for specialty, rare and orphan diseases
• Future of cell therapies and distribution considerations
• The role of distributors in gene therapies
• Current trends and changes impacting biosimilars and specialty generics
• How to tailor a new launch strategy for biosimilars
• And so much more!

Don’t miss the chance to unite with colleagues and master the complexities of pharmacy and distribution models to accelerate patient access!

View the agenda to see the complete picture – the program, speakers, and more, and visit www.informaconnect.com/trade for further details and to register. Drug Channels readers will save 10% off when they use code 22DRCH10 and register prior to November 11, 2022.*

*Cannot be combined with other offers or used towards a current registration. Cannot be combined with special category rates or other offers. Other restrictions may apply.

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The content of Sponsored Posts does not necessarily reflect the views of Pembroke Consulting, Inc., Drug Channels, or any of its employees. To find out how you can promote an event on Drug Channels, please contact Paula Fein (paula@drugchannels.net).

What Pharma Companies Can Expect From the Influx of Humira Biosimilars

Today’s guest post comes from Steve Callahan, Senior Manager of Market Research at MMIT.

Steve walks us through the expected Humira biosimilars launches and discusses potential responses from payers.

To learn more, check out MMIT’s Strategic Launch Report & Evaluate Forecast solution.

Read on for Steve’s insights.

Mapping the Vertical Integration of Insurers, PBMs, Specialty Pharmacies, and Providers: A 2022 Update

I conservatively estimate that I’ve created about 1,374,613 slides during my career. But there are two slides that people seem to appreciate the most.

One is my chart showing the key channel flows within the entire U.S. pharmaceutical distribution, payment, and reimbursement system.

The other is my mapping of the insurer/PBM/specialty pharmacy/provider organizations that now dominate U.S. drug channels. Below, I provide an updated version of this second chart that reflects some recent transactions and name changes. About half of all U.S. healthcare spending flows through the seven companies shown below.

These organizations are poised to exert greater control over patient access, sites of care/dispensing, and pricing. But as I note below, Federal Trade Commission chair Lina M. Khan has other ideas about these companies.

NEW: The 2022–23 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors

I am pleased to announce our new 2022–23 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors, available for purchase and immediate download.

• Click here to download a free report overview (including a summary of industry trends, the Table of Contents, and a List of Exhibits)

• New Drug Channels Institute Study: U.S. Drug Distribution Industry Expands as COVID-19 Disruption Fades and Biosimilars Boom (press release)

We’re offering special discounted pricing if you order before October 21, 2022!

The 2022–23 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors—our 13th edition— remains the most comprehensive, fact-based tool for understanding and analyzing the large and growing U.S. pharmaceutical distribution industry.

This 2022-23 edition contains the most current financial and industry data along with detailed information about the strategies and market positions of the largest companies: AmerisourceBergen, Cardinal Health, and McKesson. It updates our annual analysis of each wholesaler’s business segments and underlying business profitability, based upon our proprietary economic models.

The notable new material in this 2022-23 edition includes three new sections:

• Section 3.4.1. contains new data on hospital acquisitions and consolidation activity.

• Section 6.1.6. examines how the Inflation Reduction Act could ultimately impact pharmaceutical wholesalers’ customers and business outlook.

• We have updated our financial analyses based on the new reporting segments introduced by AmerisourceBergen and McKesson.

We also update sections that were introduced in recent editions, such as our estimates of wholesalers' profits from provider-administered biosimilar drugs.
If you would like to pay by corporate purchase order or check, please email Tamra Feldman. If you preordered the report, you should have already received an email with download instructions. Please contact us if you did not receive the email.

WHAT’S GOING ON

Twice a year, I spend my evenings and weekends writing two comprehensive, fact-based, and nonpartisan reports on drug channel economics. In some small way, I try to make the world a better and smarter place.

Licenses for our DCI reports are regularly purchased by nearly every company involved in the drug channel: pharmaceutical manufacturers, wholesalers, pharmacists, pharmacy owners, hospitals, buyers, benefit managers, managed care executives, policy analysts, investors, lawyers, consultants, and more. So, you can find out what your customers, partners, and competitors are reading.

The 2022–23 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors is the only resource of its kind available anywhere. It offers 142 proprietary charts, exhibits, and data tables.

FOUR FUN FACTS

• The 9 chapters are self-contained and do not need to be read in order. (Really!) There are loads of internal hyperlinks to help you navigate the document and customize it to your specific interests and priorities.

• We are offering the option to download an additional PowerPoint file with images of all 150 exhibits. This popular option helps you share the insights and data with others in your organization. (The exhibits appear in all license versions. The PowerPoint file option is available only with the purchase of a corporate license.)

• There are nearly 600 endnotes, most of which have hyperlinks to original source materials. These source materials offer a handy way to build your knowledge base beyond what’s included in the full report.

• As usual, I have reluctantly stripped out the corny jokes and pop culture references.

If you have any questions (before or after reading the report), please email me.

Enjoy!

vitaCare From GoodRx Reimagines Prescription Services for a Wider Range of Patients and Treatments Than Traditional Hub Services (Guest Post)

Today’s guest post comes from Jon Lanznar, Chief Strategy Officer at vitaCare Prescription Services from GoodRx.

Jon discusses vitaCare, a pharmacy services platform acquired by GoodRx earlier this year. vitaCare helps patients understand coverage, identifies available savings opportunities, and facilitates communications between providers and payers. It also offers a path for filling a prescription, primarily through their network of third-party pharmacies.

Click here to learn more about vitaCare’s access and adherence solutions.

Read on for Jon’s insights.

Five Surprising Facts About GoodRx and the Discount Card Market

Last month, IQVIA quietly released a fascinating new report on discount cards. (Link below.) The research was sponsored by the Association for Accessible Medicines (AAM).

Below, I highlight three unexpected findings from the data regarding GoodRx’s market position, when people use discount cards, how much they save, and why PBMs should still be worried about this market.

There’s a lot to unpack about the growing discount card market. As you’ll see, this report provides valuable insights about a market that seems stacked against patients.