Yesterday, Larry Marsh at Barclays Capital reported that the much-delayed Department of Veterans Affairs pharmaceutical prime vendor (PPV) contract has been pushed back again, at least until late March.
Below, I take a totally unscientific guess at which wholesaler will win the $4 billion VA contract, given odd rumblings in the wholesale customer markets. And since McKesson provides a steep 5.15% discount to the VA, it’s a good opportunity to chat about the oft-misunderstood cost-minus pricing model. Read more...
This month’s selection of noteworthy news stories looks at broader health care cost containment debate.
Depressing news on disease management
A fascinating debate on ACOs
The sad realities of U.S healthcare spending
Plus, watch The Daily Show’s Jon Stewart lob softball questions at Secretary of Health and Human Services Kathleen Sebelius, who does some major pre-State of the Union spinning.
Pharmaceutical Executive just published a fascinating article by my friend Mason Tenaglia called Letting the Facts Get In the Way.
Based on his firm’s analysis of various data sources, Mason provides a spirited defense of co-pay offset programs. He argues that co-pay cards don't increase utilization of higher-cost brand-name drugs and don't reduce generic usage, but do increase adherence.
While the article lacks sufficient details to fully evaluate its empirical claims, it still makes a useful contribution by explaining how and why co-pay offset programs can be a valuable benefit management tool.
Surprisingly, Lipitor share is tracking below historical generic substitution patterns from the past few years, i.e., the brand-name version is losing share faster than a typical generic drug.
The chart below tells the story, which is about as unexpected as an overweight, butter-loving celebrity chef becoming the spokesperson for a manufacturer of diabetes medicine. Oh, wait... Read more...
You should check out the new 2011 ICORE Medical Pharmacy and Oncology Trend Report (free download with registration). This 60-page report provides a wealth of interesting data on the specialty drug benefit management.
The ICORE payer data confirms that the specialty pharmacy channel is displacing buy-and-bill in the physician office market. As I discuss below, this shift is occurring via white bagging of specialty drugs.
Buy-and-bill will not end for all physician-infused drugs, but there are substantial pressures for certain therapies. White bagging has important implications for specialty distributors, pharmacy benefit managers (PBMs), and providers.
And if you're a manufacturer planning for a new specialty drug's commercial launch, then you need to be the "channel steward" and design a strategy to ensure patient access supported by appropriately motivated partners. Read more...
Here at Drug Channels, we try to keep you informed about important industry news. That's why, in May, I told you about Pharma Sales Reps: The Sitcom, an ABC show called Work It. As far as I know, it's the very first TV comedy about two men who dress as women to land jobs as pharmaceutical sales reps. (Yes, really. That's the show's premise.)
Well, the first episode just aired. The good news? It won't last long based on the reviews:
TV Guide: "insulting to anyone of any gender with half a brain and a lick of taste"
The bad news? The show wasted no time in portraying an ignorant, outdated, and (worst of all) unfunny view of the pharma industry.
The video clip below shows a "sales call" by one of the main characters. Go ahead, waste 2 minutes of your life and see what Hollywood thinks about the pharma industry. Perhaps it will cure your paraskevidekatriaphobia. Read more...
Drug Channels is written by Adam J. Fein, Ph.D., founder and president of Pembroke Consulting, Inc.. Dr. Fein, one of the country’s foremost experts on pharmaceutical economics and channel strategy, consults with clients in the pharmaceutical industry. Dr. Fein earned his Ph.D. from the Wharton School of Business and a B.A., summa cum laude, from Brandeis University. He lives in Philadelphia with his wife and their two children.
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