Yesterday, McKesson reported another quarter of disappointing financial results. Click here to read the press release.
CEO John Hammergren complained that the company was “unfavorably impacted in the third quarter by weaker branded pharmaceutical pricing than anticipated.”
On last night’s earnings call, the company echoed its threat to renegotiate agreements with manufacturers that don’t increase drug list prices at a rate that's acceptable to McKesson.
In What McKesson’s Profit Warning Means for Manufacturers and Pharmacies, I explained that McKesson and other drug wholesalers want drug list prices to rise. To help you interpret what’s going on, below is a brief excerpt from our 2016-17 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors that outlines precisely how wholesalers benefit from drug price inflation—even when they have fee-based agreements with manufacturers. File this post under “warped channel incentives.”
Read more »
Source: Post feed
