Wholesalers and retailers have deepened their relationships via generic purchasing consortia—and generic drug makers are feeling the pain. Example: Novartis’ Sandoz business unit reported that its fourth-quarter 2017 sales dropped by 17% "due to increased industry-wide pricing pressure and continued customer consolidation.” (source)

Below, we examine the four generic drug mega-buyers behind this pressure: Red Oak, Walgreens Boots Alliance, McKesson and ClarusOne, and Express Script’s EconDisc.

We estimate that in 2017, these four organizations accounted for an astounding 90% of total U.S. generic drug purchases from manufacturers. Read on for our market share estimates, business profiles, and the outlook for 2018. Spoiler alert: The forecast calls for generic pain.

Today’s post is a sneak peek at our forthcoming 2018 Economic Report on U.S. Pharmacies and Pharmacy Benefit Managers. The new edition will be bigger than better than ever. Look for it on February 27!

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Here at our worldwide headquarters in Philadelphia, Eagles super bowl fever has landed. Before trying to climb a Crisco-covered light pole, please enjoy this month’s playbook of articles, intercepted for you from the Drug Channels gridiron.

• An insightful analysis of the formulary exclusions at CVS Health and Express Scripts

• A surprising look at hospital systems’ finances

• A must-read overview of the 340B program

Plus: some good news for Amazon CEO Jeff Bezos! (No, it's  not about today's breaking news.)

P.S. Join the more than 5,000 people who run after me at @DrugChannels on Twitter. Every day, I tackle links to neat stuff for you.

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Expanded Access Programs 2018

March 28-29, 2017 | Washington, DC

CBI’s Expanded Access Programs 2018 focuses on the design, development and practical implementation of early access programs. The summit convenes top industry stakeholders and regulators to examine current approaches in providing investigational, pre-launch or end-of-lifecycle drugs to patients for treatment purposes. A multi-stakeholder faculty will address key issues affecting EAPs and review the potential impact of the evolving legislative landscape.

Visit www.cbinet.com/EAP for more information. Drug Channels subscribers will save $400 off of the standard registration rate when they use discount code CGR664.*

Key Topics to Be Addressed:

• Share best practices and review comparable processes and regulations between U.S. and global expanded access programs
• Streamline policies and procedures to enable the successful launch and sustainability of global EAPs
• Review industry trends in the collection of real-world data in expanded access programs
• Navigate pricing, payment and reimbursement policy for expanded access programs
• Discuss strategies to integrate EAPs into your drug development process at the busiest point of the drug development life cycle
• Understand the clinician’s perspective on single-patient access and group EAPs — Consider barriers to access

This multi-stakeholder event is focused on U.S. and global models for a variety of access management programs, including, but not limited to:

• Expanded Access Programs
• Early Access Programs
• Compassionate Use Programs
• Named Patient Programs and
• Managed Access Programs

Visit www.cbinet.com/EAP for more information. Drug Channels subscribers will save $400 off of the standard registration rate when they use discount code CGR664.*

*Applies to standard rates only and may not be combined with other offers, category rates, promotions or applied to an existing registration. Offer not valid on workshop only or academic/non-profit registrations.

The content of Sponsored Posts does not necessarily reflect the views of Pembroke Consulting, Inc., Drug Channels, or any of its employees.

        

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Today’s guest post comes from Russel Allinson, Chief Executive Officer at Therigy.

Russel describes the current shift from volume-based to value-based contracting for enhanced population health and patient care. He explains Geisinger’s innovative and successful Medication Therapy Disease Management Program.

Russel highlights how TherigySTM enables the transition from volume-based to value-based contracting. The system’s new features help specialty pharmacies better manage care delivery, tracking, and reporting to stakeholders, while maintaining focus on the bottom line.

Read on for Russ’s insights.

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Just-released data from the Centers for Medicare & Medicaid Services (CMS) confirms that preferred cost sharing networks will continue to dominate Medicare Part D. Our exclusive analysis finds that for 2018, 99.9% of seniors are enrolled in Prescription Drug Plans (PDPs) with preferred pharmacy networks.

Below, we use the new enrollment data to analyze the major pharmacy chains’ position within the 22 major Part D plans that have preferred networks. As you will see, CVS looks poised in 2018 to recapture major market share from Walgreens and Walmart. Poor ol’ Rite Aid will once again lag far behind.

As long as pharmacies accept lower reimbursements in exchange for increasing or maintaining store traffic, preferred networks will continue to dominate the marketplace. For 2018, CVS will gain significant prescription market share—but at the cost of lower prescription profit margins. Unlike poker, the Part D preferred network winners play the lowest card.

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PAP 2018 – CBI’s 19th Annual Patient Assistance & Access Programs

March 6-7, 2018 | Baltimore, MD

www.cbinet.com/pap

Copay programs and premium support are increasingly under a scrutinizing microscope at a time when underinsurance continues to plague many patients.

Leaders from the patient assistance and product access field – manufacturers, copay foundations, non-profits, free clinics, advocacy organizations, hospitals and more – convene in Baltimore on March 6-7 to address the legal environment, industry best practices and policy watch-outs related to prescription access and financial assistance. You can read all about it here.

PAP 2018 features four strategy streams, seven learning labs, more than twenty sessions and fifty plus speakers. Here is a snapshot of what some of the sessions will focus on:

• Legal and policy dynamics influencing access and affordability
• Advancements in patient support technology
• Patient experience, access and adherence optimization
• PBM restrictions on manufacturer-sponsored copay assistance programs

Visit www.cbinet.com/pap for further details and to register. Drug Channels readers will save $300 off the standard rate when they use discount code TGU584 and register prior to February 2nd.*

CBI will see you there!

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

The content of Sponsored Posts does not necessarily reflect the views of Pembroke Consulting, Inc., Drug Channels, or any of its employees.

        

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Yesterday, I examined new data showing that employers are receiving an increasing share of the rebate money collected by pharmacy benefit managers. See Employers Are Extracting More of Their Rebate Dollars from PBMs.

The data, from a Pharmacy Benefit Management Institute (PBMI) survey, also documented a troubling reality. Employers acknowledged that they are hoarding rebates rather than sharing the savings with the employees whose prescriptions generated the rebate funds. It’s the first time that I’ve seen such an admission from plan sponsors.

Consider the data below as confirmation of the warped incentives caused by the gross-to-net bubble—the growing spread between a manufacturer’s list price for a drug and the net price. Consider the diabetes example below. Fixing this situation will be more challenging than walking to Mordor. Point-of-sale (POS) rebates may be a good place to start, but employers seem unwilling to part with their precious.

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The debate about drug prices and the drug channel system will continue in 2018. Let’s shed some light on one murky, little-understood corner of this world: how employer-sponsored health plans access the billions of dollars in manufacturer rebates that are negotiated by their pharmacy benefit managers (PBMs).

We turn to data from the Pharmacy Benefit Management Institute’s (PBMI) excellent 2017 Trends in Drug Benefit Design. (Free download with registration.) As far as I know, it’s the only public data source for understanding PBM-client rebate practices.

According to PBMI’s survey data, larger and smaller employers increasingly receive 100% of manufacturer rebates for traditional drugs. Many have also negotiated guaranteed rebates that shift risk to PBMs. Other employers get a share of the rebates or a flat guaranteed amount.

Below, I delve into the data and offer my observations. Tomorrow, I’ll examine what employers are doing with these rebate dollars. Spoiler alert: It’s usually not good for patients.

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The Life Sciences Patient Congress

March 19-21, 2018 | Philadelphia, PA

www.worldcongress.com/events/patientcongress

The Patient Congress features 4 co-located Summits aiming to convene a forum to aid pharma with breaking down internal silos to incorporate the patient voice across the entire product lifecycle in order to drive collaborative, innovative solutions from essential stakeholder partnerships, and enhance health outcomes.

Join together with 250+ industry leaders from life science, pharmacy, health plans, provider organizations, patient leaders, and policy makers to share innovative ideas and strategies, drive innovation, and create a community of stakeholders to provide value-based care to patients.

Tracks include:

• 6th Annual Patient Adherence & Engagement Summit
• 6th Annual Patient Advocacy Summit
• Patient Journey Mapping for Speed to Therapy Summit
• Patient-Centered Clinical Trials Summit

How will you benefit?

• 4 co-located events for the price of 1, allowing each attendee to create their own personalized conference experience that caters to their individual needs and allows enhanced networking
• An exemplary speaking faculty including 80+ speakers from FDA, Pfizer, AstraZeneca, Novartis, Sanofi, Genetech, Merck, Astellas, BMS, GSK, and more!
• Be a part of the first ever Patient Choice Awards, an awards ceremony recognizing Pharma and Patient collaborations: The only awards gala led by a judging panel of Patient Leaders
• Real-time insight from patients with a Patient Reaction Panel to provide the patient perspective throughout the conference
• Break down internal silos, network, and form alliances with game changers and thought leaders across all stakeholder groups within the healthcare ecosystem at the only event looking at how to incorporate the patient voice throughout the entire product lifecycle, from the research and development phase all the way through commercialization and post-commercialization.

Visit www.worldcongress.com/events/patientcongress for more information.

The content of Sponsored Posts does not necessarily reflect the views of Pembroke Consulting, Inc., Drug Channels, or any of its employees.

        

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Hey there, pharmacists! Ready for some good news?

According to our exclusive analysis of the U.S. Bureau of Labor Statistics’ (BLS) new Occupational Outlook Handbook, the total pharmacist employment figure is projected to grow by almost 18,000 jobs by 2026.

The pharmacist outlook, however, varies by industry. Pharmacist jobs at hospitals, physician offices, and other non-retail settings will outpace growth at conventional retail and mail outpatient pharmacies.

Read on for an industry-by-industry look at the outlook. And if you are a retail or mail pharmacist: Plan accordingly! Drug Channels humbly suggests some alternative career ideas below.

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