Drug Channels delivers timely analysis and provocative opinions on pharmaceutical economics and the drug distribution system. It is written by Adam J. Fein, Ph.D., one of the country's foremost experts on pharmaceutical economics and channel strategy. Drug Channels reaches an engaged, loyal and growing audience of more than 26,000 subscribers. Learn more...

Thursday, November 21, 2019

Drug Channels News Roundup, November 2019: Amazon Pharmacy, JAMA 340B Redux, Diplomat, Hospital-Physician Integration, and the FDA

Happy Thanksgiving, everyone! Before you stretch your stomach, stretch your mind with some food for thought. In this issue:
  • Here comes Amazon Pharmacy
  • OIG Confirms it: the JAMA 340B paper is wrong
  • Diplomat gets close to the edge
  • Unfortunately unsurprising news about hospital-physician integration
Plus, a timely new campaign from the FDA.

P.S. Join the more than 8,400 people who follow @DrugChannels on Twitter. My recent tweets have highlighted biosimilars, telehealth, the Walgreens LBO, ICER, hospital consolidation, H.R.3 and biotech, reference pricing for U.S. healthcare spending, global channels overlord Stefano Pessina, and Canadians.


Drug Channels Institute will host an exclusive live webinar, Drug Channels Outlook: What You Need to Watch in 2020, on Friday, December 13, 2019, from 12 p.m. to 1:00 p.m. ET. Get ready for what will certainly be another year of change for U.S. healthcare. CLICK HERE TO LEARN MORE AND SIGN UP.

Tuesday, November 19, 2019

Part B Update: Hospitals Displacing Physicians, Amid Slow Growth in Drug Prices

The Medicare Payment Advisory Commission (MedPAC), the independent agency that advises Congress on the Medicare program, recently released its June 2019 Data Book: Health Care Spending and the Medicare Program.

This year’s report provides the latest details about the ongoing disruption of the buy-and-bill market in Medicare Part B. As you will see below:
  • Physician offices account for a diminishing share of Part B spending, though absolute spending at these sites continues to grow. 
  • Hospital outpatient settings have been crowding out physician offices. Hospital outpatient departments now account for more than 40% of Part B spending—and an even greater share for oncology products.
What's more, Part B spending has grown much faster than drug prices. The prices paid by Medicare for the top 10 Part B drugs have been growing at low- to mid-single digit rates. Spending has grown due to more beneficiaries and the adoption of newer, higher-priced therapies.

The Trump administration has signaled that it wants Medicare to pay less for Part B drugs. Its primary proposals focus on comparisons to prices paid by other countries. These analyses conveniently overlook the lower drug prices that manufacturers provide to the Medicaid program and 340B hospitals.

It looks like 2020 will not be relaxing times for the buy-and-bill channel.

Drug Channels Institute will host an exclusive live webinar, Drug Channels Outlook: What You Need to Watch in 2020, on Friday, December 13, 2019, from 12 p.m. to 1:00 p.m. ET. Get ready for what will certainly be another year of change for U.S. healthcare. CLICK HERE TO LEARN MORE AND SIGN UP.

Monday, November 18, 2019

CBI's 15th Annual Life Sciences Trade and Channel Strategies

CBI’s 15th Annual Life Sciences Trade and Channel Strategies
December 3-5, 2019 | Philadelphia, PA
www.cbinet.com/trade

Hit the ground running in 2020 by closing out the year at Trade and Channel 2019! The life science industry's foremost thought-leaders will come together on December 3-5 to unravel the complexities of the distribution channel, navigate high-impact topics transforming trade and benchmark winning pharmacy and distribution frameworks.

Visit www.cbinet.com/trade for further details and to register. Drug Channels readers will save $200 off the standard rate when they use code UTC356 and register prior to November 29th.*

You can download the complete agenda here.

Can't Miss Keynotes include:
  • Drug Channels Update - Things to Watch in 2020
    Adam J. Fein, Ph.D., CEO, Drug Channels Institute
  • Fireside Chat - Candid Conversation with an Industry Pioneer
    Bill Roth, Founding Partner, Blue Fin Group
  • Healthcare Policy Address - Current State of Regulatory Reform Driving Innovation and Access
    Eric D. Hargan, Deputy Secretary, Department of Health and Human Services (HHS)
  • How the New Wave of Algorithmic Care Will Disrupt Your Business
    Zen Chu, Investor, PillPack; Senior Lecturer in Healthcare Innovation, MIT Sloan School of Management and Harvard-MIT Health Sciences & Technology
In-Depth Summits, Interactive Workshops and Tailored Tracks focusing on:
  • New Product Launch Planning
  • Mitigate Compliance Risk in Manufacturer and Specialty Pharmacy Contracts
  • Digital and Blockchain Technology Adoption and Implementation
  • Retail and POS Contracting
  • Forward-Thinking Strategies for Specialty Generics and Biosimilars
  • 340B - Best Practices to Improve Compliance and Manage Drug Diversion
  • Specialty Channel Network Design and Contracting
  • Market Access, Patient Support and Hub Services Optimization
  • Next-Gen Specialty Product Data Strategies
Download the agenda to plan your sessions and prepare to return to the office armed with critical updates and valuable takeaways.

Visit www.cbinet.com/trade for further details and to register. Drug Channels readers will save $200 off the standard rate when they use code UTC356 and register prior to November 29th.*

CBI will see you there!

*Cannot be combined with other offers or used towards a current registration. Cannot be combined with special category rates, clinic/hospital rates, non-profit rates other offers. 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.

Friday, November 15, 2019

Drug Channels Outlook: What You Need to Watch in 2020 (A Drug Channels Institute Live Webinar)

On December 13 at 12:00 p.m to 1:00 p.m. ET, Drug Channels Institute (DCI) will host an exclusive new webinar: Drug Channels Outlook: What You Need to Watch in 2020. Join Dr. Adam J. Fein, CEO of DCI and the author of Drug Channels, for this one hour, live event as he helps you understand and get ready for what will certainly be another year of change for U.S. healthcare.


The webinar’s benefits include:
  • An unlimited number of people may listen at one location! Invite your whole team for an hour of intensive learning and strategic insight. The presentation is sure to spark important internal discussion about the coming year’s implications for your business.
  • The opportunity to ask Dr. Fein questions during the event
  • Dr. Fein’s slides and analysis of the marketplace. You’ll also receive a downloadable PDF with the webinar slides.
  • Access via any device with a web browser (computer, iPad, iPhone/Android, etc.)
WHAT YOU WILL LEARN

We will help you and your team get ready for the year ahead by outlining key issues and uncertainties that will surely affect your planning.

Dr. Fein will share his latest thinking on:
  • The crucial market trends that will drive the strategies of pharmacies, wholesalers, PBMs, and payers
  • What’s next for drug pricing and the gross-to-net bubble
  • The prospects for vertical integration, consolidations, and novel channel alliances
  • How health plans and payers will manage drug channels
  • The likely changes to government regulations and policy
  • An update on prospects for disruption by Amazon and other new entrants
PLUS: Dr. Fein will take your questions.

HOW TO SIGN UP

The webinar will take place on December 13, 2019, at 12:00 p.m. ET.

Sign up now for only $250 per site.
  • After you register, you will receive an email with the information you will need to access our webinar and add it to your calendar. We will also send you reminder emails one day and one hour before the event.
  • Invite your entire field team to listen at multiple sites around the country. Contact Paula Fein (paula@drugchannelsinstitute.com) to get special pricing for 10 or more locations. If you purchase access for multiple sites, we will contact you for the name and email address of a contact person at each location.
  • If your plans change and you can’t make it on December 13, we will provide an opportunity to watch a replay of the webinar. Unfortunately, we are unable to offer refunds.
  • Pembroke Consulting clients receive free access to the webinar. Contact Tamra Feldman (admin@drugchannels.net) for details. Note that we will automatically refund purchases from Pembroke’s corporate clients.

Wednesday, November 13, 2019

Employer Pharmacy Benefits in 2019: High Deductibles and Greater Coinsurance Expose Even More Patients to Prescription List Prices

It’s time for our annual deep dive into employer-sponsored health coverage via the 2019 Kaiser Family Foundation Employer Health Benefits Survey. This report provides valuable national benchmarking data. You can read it online for free.

Below, you’ll find my highlights of the report’s findings on prescription coverage. I summarize employers’ 2019 pharmacy benefits by examining (1) cost sharing tier structures, (2) the prevalence of copayment vs. coinsurance, and (3) average copayments and coinsurance rates, by formulary tier. I break down the 2019 results for plans with and without high deductibles.

Employer benefit designs increasingly expose patients to the list price of their prescriptions. This is due largely to the benefit designs described below, which have shifted out-of-pocket spending for prescription drugs from copayments toward deductible and coinsurance spending. As you will see, cost sharing for prescription drugs in high-deductible plans differs significantly from that of plans that lack high deductibles. Plans with no limit on out-of-pocket expenses remain distressingly common.

Patients are finding their benefits to be increasingly mysterious, with more tiers, more coinsurance, and greater use of deductibles. When people complain about “drug prices,” they are actually complaining about the share of costs that they pay—and how those costs are computed. Put another way, the plan details won’t give employees a glad expression.

Read on for my analysis along with our annual Drug Channels tiers/tears puns.

Tuesday, November 12, 2019

CBI’s Medicare Pricing & Contracting Congress

CBI’s Medicare Pricing & Contracting Congress
February 25-26, 2020 | Hilton Alexandria Old Town | Alexandria, VA
www.cbinet.com/medicare2020

The current Medicare and drug pricing landscape is facing the potential for seismic changes in the year ahead. CBI’s Medicare Pricing & Contracting Congress expands in 2020 to convene stakeholders representing bio/pharma manufacturers, health plans, PBMs and leading policy advisors to provide critical updates and analysis on the impact of changing legislation.

Visit www.cbinet.com/Medicare2020 for more information. Drug Channels readers will save $500 off the standard registration rate when they use promo code RDU698*.

Benefit from In-Depth Discussions on High-Impact Issues:
  • Political and legislative trends impacting coverage & access
  • International Pricing Index Model (IPI) and Most Favored-Nations Clause updates
  • Changes to Part B and ASP reporting requirements
  • Trends and insights into Medicare Part D drug spending
  • Considerations for balancing care and quality while delivering patient-centric outcomes
  • Approaches for value-based contracting and alternative payment models
PLUS! Choose Between Two Tracks of Content:
  1. Pricing & Contracting — for manufacturers
  2. Part D Plan Strategies —for health plans and PBMs
Distinguished Speakers Driving the Dialogue:
  • Mike Anderson, Pharm.D., CEO, Part D, UnitedHealthcare Medicare & Retirement
  • Dan Wygal, Executive Director, Contract and Channel Strategy, AstraZeneca Pharmaceuticals
  • Laura Crawn, Senior Director, Government Programs Market Strategy & Support, Express Scripts
  • Steve Phillips, Senior Director, Health Policy Worldwide Government Affairs & Policy, Johnson & Johnson
  • Michelle Drozd, Executive Director Reimbursement Policy, Gilead Sciences
  • Kendra Martello, Executive Director, Public Policy & Corporate Social Responsibility, Government Affairs & Public Policy, Mallinckrodt Pharmaceuticals
  • John Gorman, Founder and Chairman, Nightingale Partners
  • And more!
Visit www.cbinet.com/Medicare2020 for more information. Drug Channels readers will save $500 off the standard registration rate when they use promo code RDU698*.

*Offer 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.

Thursday, November 07, 2019

A Tale of Two Chains: Walgreens Exits Pharmacy Clinics While CVS Reinvents In-Store Care

For retail clinics, is it the best of times or the worst of times?

Walgreens  retail clinic business has been floundering. Last week, Walgreens announced that it would shut the last of its in-house retail clinics and in favor of outsourcing clinic operations to hospitals and health systems.

Other retailers are investing in more expansive healthcare services to realize the promise of store-based healthcare. That’s one reason why CVS Health is rolling out its HealthHUBs, while Walmart is phasing out its traditional retail clinics in favor of a more comprehensive Walmart Health offering.

Below, I review the retail clinic market in 2019. Many large retail chains operate clinics, but their strategies and growth rates differ. I expect the traditional retail clinic model to fade in favor of locations with broader healthcare services. This new direction will put pharmacies in more direct competition with urgent care clinics and primary care providers.

Pay close attention to how CVS Health leverages its Aetna business to manage site-of-care costs. Investors, payers, and patients will soon determine whether this has been the age of wisdom or the age of foolishness.

Tuesday, November 05, 2019

CVS Health’s Specialty Gain Is McKesson’s Pain

Last week, McKesson released its earnings for the third calendar quarter of 2019. (See the links below.) The company revealed unexpectedly high revenue growth in its distribution business—but little incremental profit from these new revenues. Its stock dropped sharply on the news.

The thief that burgled the missing profits: CVS Health, McKesson’s largest customer. McKesson’s financial results reflected the challenges of an ultra-low profit customer that unexpectedly started growing much faster than the overall industry.

Consolidation and concentration in the pharmacy and pharmacy benefit management (PBM) industries continue to pressure wholesalers’ profits. Manufacturers and smaller customers should get ready for the fryer. Robble robble!

Monday, November 04, 2019

Pharmaceutical Drug Pricing Strategies and Copay Summits

Pharmaceutical Drug Pricing Strategies and Copay Summits
December 11-12, 2019 | Alexandria, VA

World Congress invites you to the Pharmaceutical Drug Pricing Strategies and Copay Summits where experts will share their solutions for critical issues.

Join your peers to learn from 35 speakers and enjoy 5 hours of networking at The Westin, Alexandria, VA. Drug Channels readers save $200 off the standard rate when you use promo code DC200 and register by November 8th.* To register your team, contact World Congress at 800-767-9499.

The price of prescription drugs and affordability of treatments is at the center of the health care debate. These Summits address the critical juncture of price and affordability, by showcasing strategies, innovations, and best practices across the bio/pharmaceutical industry to share how to be a part of the solution.

Given the recent news headlines, Senate finance hearings, and the introduction of drug pricing transparency laws, drug pricing is under the national spotlight. Hear both perspectives at the Pharmaceutical Drug Pricing Strategies Summit which brings pricing and reimbursement leaders together to discuss the future of federal and state pricing requirements, transparency regulations, and strategic drug pricing models.

The 2nd Annual Copay Summit convenes multiple stakeholders together, from manufacturers, payers, states, government, advocacy, and foundational groups, to examine regulations and innovations around the use of Copay and Coupon programs, and Copay Accumulator and Maximizers in an evolving health care landscape.

The Summits’ in-depth sessions will help you attain solutions for issues your organization faces in drug pricing and copay strategies.
  • Develop strategic drug pricing models to meet federal and state pricing requirements and ensure transparency
  • Examine the changes regarding copay accumulator adjustments, state copay legislation, and compliant assistance programs
  • Explore multi-stakeholder insights from manufacturers, and insurers, on the future of drug price transparency and patient affordability
Our distinguished speaking faculty will share their insights:
  • Mike Mason, Vice President, Lilly Diabetes, Senior Vice President, Connected Care and Insulins Eli Lilly and Company; he recently testified before the U.S. House of Representatives
  • Robert Popovian, Vice President, US Government Relations, Pfizer; he has published and presented extensively on the impact of biopharmaceuticals and health policies on health care costs and clinical outcomes
  • Peter Pitts, President of the Center for Medicine in the Public Interest; he is a former member of the United States Senior Executive Service and was FDA’s Associate Commissioner for External Relations
Join your peers to learn from 35 speakers and enjoy 5 hours of networking at The Westin, Alexandria, VA. Drug Channels readers save $200 off the standard rate when you use promo code DC200 and register by November 8th.* To register your team, contact World Congress at 800-767-9499.

*Cannot be combined with other offers or prior registrations.


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

Friday, November 01, 2019

Connecting Providers and Technology: Improving the Patient Journey Through Actionable Insights

Today’s guest post comes from Ben Stormer, Vice President of Specialty Product Development and Strategy at CoverMyMeds and Regina Murphy, Vice President of Product Strategy, Access and Adherence at RxCrossroads by McKesson.

Ben and Regina describe AMP: Access for More Patients™, a new technology-based hub service solution from CoverMyMeds and RxCrossroads by McKesson. To learn more about AMP, visit go.covermymeds.com/specialty.

Read on for Ben’s and Regina’s insights.

Thursday, October 31, 2019

Drug Channels News Roundup, October 2019: Express Scripts + 340B, Government Negotiation, Compounding Pharmacies, and Red Meat (with Onion)

Eeek! Time for my Halloween roundup of Drug Channels news stories.

In this issue:
  • Creepy! Express Scripts invests in 340B
  • Shocking! What Americans really think about government drug price negotiations
  • Scary! A terrifying tale of compounding pharmacies and the Cats movie
Plus, the best take on nutrition research I have ever read.

P.S. Join the more than 8,300 people who follow @DrugChannels on Twitter. My recent tweets have highlighted biosimilars, Part D in 2020, generic drug approvals, H.R.3 and its effects, 340B hypocrisy, ICER, Jamaican monetary policy, billionaires, and more.

Tuesday, October 29, 2019

Even More Independents Avoid 2020 Part D Preferred Pharmacy Networks

Last week, I highlighted the largest pharmacy chains that will participate in next year’s Medicare Part D prescription drug plans (PDP).

Today, I examine how independent pharmacies will participate as preferred cost sharing pharmacies via the pharmacy services administrative organizations (PSAOs) that that represent these pharmacies in negotiations with plans.

For most independent pharmacies and their PSAOs, the profit sacrifices of Medicare Part D preferred networks are apparently no longer worth the incremental volume. As I predicted last year, they are starting to reject preferred networks:
  • McKesson’s Health Mart Atlas will be the only PSAO whose members’ level of participation in preferred Part D networks will be comparable to that of the big chains.
  • Pharmacy members of AmerisourceBergen’s Elevate network will again skip preferred status in the major Part D networks.
  • Members of Cardinal Health’s PSAOs and the independent Arete Pharmacy Network will be preferred in many fewer 2020 networks compared with 2019.
You’ll find details and a handy scorecard below.

With independents fleeing preferred networks, will the Centers for Medicare & Medicaid Services (CMS) take a closer look at the market? And are independents really ready to say that they are never ever, ever, ever getting back together with preferred networks?

Monday, October 28, 2019

CBI’s Specialty Therapies and Biosimilars Congress

CBI’s Specialty Therapies and Biosimilars Congress
January 22-24, 2020 | Miami, FL
www.cbinet.com/specialtytherapies

Kick off 2020 in Miami at the Specialty Therapies and Biosimilars Congress! Come together with colleagues from across the industry to tackle the challenges involved in managing the cost and quality of innovative therapies that are controlling or conquering diseases that were once considered untreatable.

Visit www.cbinet.com/specialtytherapies for further details and to register. Drug Channels readers will save $400 off the standard rate when they use promo code SPT400 and register prior to November 22nd.*

The quest to drive better outcomes, ensure access and manage costs is more vital than ever. Don’t miss the chance to be part of the conversation. Sign up to see the agenda here.

Experts from Blue Cross Blue Shield of Michigan, MedImpact Healthcare System, Fairview Specialty Pharmacy, Ochsner Health System, Boehringer Ingelheim, AHIP, Hemophilia Alliance, BBCIC, Mayo Clinic, Sunovion Pharmaceuticals and more will lead robust discussions on topics such as:
  • Biosimilar Litigation and Patent Law
  • Cell and Gene Therapy Reimbursement and Funding Strategy
  • Medicare Report 2020
  • Barriers to Entry – Challenges and Solutions for Entering the Marketplace
  • Collaboration in a Complicated Landscape – The Role of Specialty Pharmacies in Controlling Cost
  • Managing the Patient’s Journey – Payer Contracts, Points of Care and Formulary
  • Real World Data and Demonstrated Value – The Care for Biosimilars and Expensive Therapies
  • The Evolving Role of the Specialty Pharmacy in Oncology Management
Visit www.cbinet.com/specialtytherapies for further details and to register. Drug Channels readers will save $400 off the standard rate when they use promo code SPT400 and register prior to November 22nd.*

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.

Thursday, October 24, 2019

Winning? CVS, Kroger, and Walmart Expand in 2020 Part D Preferred Pharmacy Networks

In Preferred Pharmacy Networks Rebound in 2020 Medicare Part D Plans, I highlighted how those networks will again dominate next year’s Medicare Part D prescription drug plans (PDP).

Today, I examine chain pharmacies’ participation in the major 2020 Part D preferred networks that the nine largest plan sponsors offers. Some highlights:
  • CVS will retain its position as a preferred pharmacy in many 2020 networks, while Walgreens will pull back on its preferred pharmacy participation. 
  • For the first time in years, Rite Aid will expand its participation in plans that are independent of its EnvisionRx subsidiary.
  • Walmart will regain its position as the chain most committed to preferred networks. Kroger and Albertsons will maintain the strong positions that they have established over the past few years.
Below, we provide you with a handy table for scoring each chain’s participation and all changes from 2019 to 2020.

The winners will gain and/or retain Part D prescription volume, but profits will suffer due to direct and indirect remuneration (DIR) price concessions, a.k.a., DIR fees. The retail chains have never clearly disclosed how they tradeoff prescription volume for profits. Remember: you can’t spell “pyrrhic victory” without victory.

Tuesday, October 22, 2019

Preferred Pharmacy Networks Rebound in 2020 Medicare Part D Plans: Details on WellCare, CVS Health, Humana, Cigna, and More

The Centers for Medicare & Medicaid Services (CMS) has released its data on the 2020 Medicare Part D plans.

Our exclusive analysis of these data reveals that preferred cost sharing pharmacy networks will maintain their dominance as an established component of Part D benefit design. For 2020, 95% of Medicare Part D regional prescription drug plans (PDP) will have a preferred network. In 2019, 92% of plans had such a network.

Below, I provide historical data on preferred networks’ growth and then discuss the top nine companies offering the 2020 plans. Humana is the only major plan sponsor to offer a national plan with an open network for 2020.

The prominence of preferred networks will again pressure pharmacy profits. That’s because pharmacies must pay direct and indirect remuneration (DIR) price concessions, a.k.a., DIR fees. In my next post, I’ll examine chain pharmacies’ participation in these plans and what it means for pharmacy profits.

P.S. Today’s post is brought to you by the letter D.

Monday, October 21, 2019

CBI’s FDA/CMS Summit 2019

FDA/CMS Summit
December 3-4, 2019 | The Westin Arlington Gateways | Arlington, VA www.cbinet.com/FDACMS

Exclusive Offer for Drug Channels Readers:
Register Now to SAVE $400* using code DNU682

The 27th Annual FDA/CMS Summit, taking place December 3-4 in Arlington, VA, offers an outstanding opportunity to garner the latest regulatory updates and strategic priorities directly from regulatory leaders representing the FDA, HHS and CMS.

This year’s robust agenda features an excellent speaking faculty participating in keynotes, interactive Q&A sessions and panels addressing policy changes, federal review processes and technology advances in healthcare and technology, including:
  • Opening Keynote Address from Norman Sharpless, Acting Commissioner—FDA
  • CDER Keynote Address: 2019 and the Year Ahead—Strategic Plans and Priorities, Janet Woodcock, Director, Center for Drug Evaluation & Research (CDER)—FDA
  • Three Interactive Q&A Sessions
    • Advanced Therapeutics and Cell and Gene Therapies, Celia M. Witten, M.D., Ph.D., Deputy Director, Center for Biologics Evaluation and Research (CBER)—FDA
    • Updates on the Innovation and Investment Summit—Eric D. Hargan, Deputy Secretary, U.S. Department of Health and Human Services
    • Rare Diseases—Common Issues in Drug Development Guidance for Industry, Peter Stein, M.D., Director, Office of New Drugs, Center for Drug Evaluation and Research (CDER)—FDA
  • Jeet Guram, MD, Senior Advisor, Office of the Administrator, Centers for Medicare and Medicaid Services (CMS) and Anand Shah, MD, Senior Medical Advisor for Innovation, Office of the Administrator, Centers for Medicare and Medicaid Services (CMS) share insights on panel discussions addressing: Value-Based Payment Models and the Shifting Regulatory Policy Landscape for Cell and Gene Therapies
Download the conference agenda for the complete speaker and session lineup, then register using discount code DNU682 to receive $400 off* the standard rate!

 *Discount expires 12/2/19; applicable for bio/pharma manufacturers only; cannot be combined or applied to existing registration. 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.

Friday, October 18, 2019

How Technology Will Drive the Future of Patient Access Services

Today’s guest post comes from Erica Conroy, Vice President of Specialty at CoverMyMeds, and Heather Morel, Senior Vice President and General Manager, Access and Adherence at RxCrossroads by McKesson.

Erica and Heather describe how access, affordability, and adherence challenge specialty patients. They outline the shortcomings of traditional hub service programs and introduce AMP: Access for More Patients™, a new solution from CoverMyMeds and RxCrossroads by McKesson.

To learn more, visit go.covermymeds.com/amp and download their case study: End-To-End Electronic Support Improves Patient Access for Specialty Medications.

Read on for Erica’s and Heather’s insights.

Thursday, October 17, 2019

Grim Job Outlook for Retail Pharmacists Gets Even Grimmer

In Pharmacist Job Market: Salaries Keep Growing While Retail Employment Drops, I profile pharmacist employment and salaries in 2018.

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 remain unchanged over the next 10 years.

However, the pharmacist outlook varies by industry. Pharmacist jobs at hospitals, physician offices, and other non-retail settings will outpace growth at retail outpatient settings. Chain and independent drugstores are projected to employ 11,000 fewer pharmacists in 2028 than they do today.

Read on for an industry-by-industry look at the outlook. And if you are a retail pharmacist: Plan accordingly! I briefly highlight some implications for pharmacists, pharmacy students, and schools of pharmacy. The future is predictable, but hardly anybody bothers to predict it.

Tuesday, October 15, 2019

Pharmacist Job Market: Salaries Keep Growing While Retail Employment Drops

October is American Pharmacists Month, so it’s a good time to update our exclusive annual analysis of pharmacist salaries.

For 2018, U.S. government data show that the average gross base salary for a pharmacist at a retail, mail, long-term care, and specialty pharmacy exceeded $123,000—up slightly from the 2017 figure. Pharmacists who work in hospitals had greater salary increases than did pharmacists in outpatient dispensing formats. However, pharmacists at physician offices saw their salaries decline for the third straight year. Below you will find complete details, organized by practice setting.

One surprise: Total pharmacist employment did not grow in 2018, and the number of pharmacists working in retail settings decreased. This pushed the share of pharmacists who work at hospitals to a new high. Are we seeing the early warning signs of employment losses due to retail pharmacy challenges?

Monday, October 14, 2019

Join me at CBI’s 15th Annual Life Sciences Trade and Channel Strategies

Are you ready for some channel strategy? Then join me at CBI’s 15th Annual Life Sciences Trade and Channel Strategies conference, being held this December in Philadelphia. CBI’s annual event is one of our industry’s key events for bio/pharma trade management.

I’ll kick things off with an interactive keynote address titled Drug Channels Update–Things to Watch in 2020. I'll highlight the key trends for the year ahead. This is the only CBI event where I give a presentation.

I'll also be moderating a panel with Wall Street experts. We'll delve further into industry trends and such other hot topics as stock market valuations, M&A, drug pricing, Amazon, and more.

Drug Channels readers will save $300 off the standard rate when they use discount code XTY397 and register prior to November 8th.*

I hope you’ll join me in Philadelphia this December.

Regards,
Adam

A MESSAGE FROM CBI

CBI’s 15th Annual Life Sciences Trade and Channel Strategies
December 3-5, 2019 | Philadelphia, PA
www.cbinet.com/trade

Get ready to hit the ground running in 2020 by closing out the year at CBI’s Trade and Channel 2019! The life science industry's foremost thought-leaders will come together on December 3-5 to navigate the complex distribution and contracting landscape, and will take a deep dive into ways to optimize channel strategies to reach patients in need and provide the necessary services based on product type, site of care and reimbursement.

Visit www.cbinet.com/trade for further details and to register. Drug Channels readers will save $300 off the standard rate when they use discount code XTY397 and register prior to November 8th.*

You can download the complete agenda here.

In-Depth Summits, Interactive Workshops and Tailored Tracks focusing on:
  • New Product Launch Planning
  • Mitigate Compliance Risk in Manufacturer and Specialty Pharmacy Contracts
  • Digital and Blockchain Technology Adoption and Implementation
  • Retail and POS Contracting
  • Forward-Thinking Strategies for Specialty Generics and Biosimilars
  • 340B - Best Practices to Improve Compliance and Manage Drug Diversion
  • Specialty Channel Network Design and Contracting
  • Market Access, Patient Support and Hub Services Optimization
  • Next-Gen Specialty Product Data Strategies
Can't Miss Keynotes include:
  • Drug Channels Update - Things to Watch in 2020
    Adam J. Fein, Ph.D., CEO, Drug Channels Institute
  • Fireside Chat - Candid Conversation with an Industry Pioneer
    Bill Roth, Founding Partner, Blue Fin Group
  • Healthcare Policy Address - Current State of Regulatory Reform Driving Innovation and Access
    Eric D. Hargan, Deputy Secretary, Department of Health and Human Services (HHS)
  • How the New Wave of Algorithmic Care Will Disrupt Your Business
    Zen Chu, Investor, PillPack; Senior Lecturer in Healthcare Innovation, MIT Sloan School of Management and Harvard-MIT Health Sciences & Technology
Plus - New Features for 2019:
  • Women's Leadership Forum
  • Exclusive Benchmarking Report - Industry Intelligence on the State of the Bio/Pharma Trade and Channel Landscape
  • Industry-Only Trade Director's Executive Exchange
Download the agenda to plan your sessions and prepare to return to the office armed with critical updates and valuable takeaways.

Visit www.cbinet.com/trade for further details and to register. Drug Channels readers will save $300 off the standard rate when they use discount code XTY397 and register prior to November 8th.*

CBI will see you there!

*Cannot be combined with other offers or used towards a current registration. Cannot be combined with special category rates, clinic/hospital rates, non-profit rates other offers. 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.

Friday, October 11, 2019

Patients Are the Key to Understanding Adherence

Today’s guest post come from Heather Morel, Senior Vice President and General Manager of Access and Adherence at RxCrossroads by McKesson.

Heather discusses how to overcome barriers to patient adherence. To learn more about RxCrossroads by McKesson’s patient support programs, download their free white paper: The Impact of Behavioral Coaching on Adherence.

Read on for Heather’s insights.

Thursday, October 10, 2019

How Express Scripts Plans to Disrupt the Emerging Cell and Gene Therapy Channel

Cell and gene therapies are poised to transform the treatment of many serious and previously untreatable conditions.

As this new market develops, payers and PBMs are laying the groundwork for disruptive channel models. Below, I examine how Cigna’s Express Scripts business has begun to shape this channel’s development. Its new models show the promise of private market innovation for the financing and commercialization of novel therapies.

These approaches will also shake up existing channels. If payers rub this magic lamp, these innovative channel models would: 1) enhance the role of the vertically-integrated insurer/PBM/pharmacy companies, 2) reduce or eliminate buy-and-bill by providers, and 3) minimize the role of the largest wholesalers. Consider the examples below to be early warnings of change.

FYI: Today’s post is an excerpt from Chapter 6 of our new 2019–20 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors.

Tuesday, October 08, 2019

NEW: The 2019–20 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors

I am pleased to announce our new 2019–20 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors, available for purchase and immediate download.
We’re offering special discounted pricing if you order before October 18, 2019!

The 2019–20 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors—our 10th edition—is the most comprehensive, fact-based tool for understanding and analyzing the U.S. pharmaceutical distribution industry.

This 2019-20 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. An intriguing new section reviews the financial factors that determine executive compensation at each of the public companies. See page vi of the free report overview for a summary of key changes and updates in this 2019-20 edition.

See below for more info and some behind-the-scenes tidbits. Happy reading!

P.S. 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.

Monday, October 07, 2019

CBI’s 3rd Nurse Educator Programs

CBI’s 3rd Nurse Educator Programs
November 20-21, 2019 | Philadelphia, PA
www.cbinet.com/nurseeducator

Exclusive Offer for Drug Channels Readers – Register by 11/1/2019 and save $400* (mention promo code “400NEP”)

During a time with advanced therapy regimens and complex reimbursement models, Nurse Educators are pivotal to address the knowledge gap and simplify the path forward for patients, from clinical interactions to commercialization. CBI’s Nurse Educator Programs tackles emerging challenges and provides the tools and strategies to optimize patient adherence and uncover best practices for improving the overall patient experience.

Download the complete agenda here.

Join your compliance, medical affairs and access peers November 20-21 in Philadelphia, PA, and hear expert perspectives from U.S Attorneys, Johnson & Johnson, Lexicon Pharmaceuticals, Alnylam, Janssen, Otsuka and many more.

Cutting Edge Topics on the Agenda Include:
  • Compliant Patient Interactions Workshop:
    • Patient Assistance and Copay Programs
    • Foundation Support
    • Hub Services
    • Risks Associated with Field Reimbursement Teams
  • Patient Spotlight — Elevate Meaningful Patient Engagement Programs to Advance Education and Outcomes
  • Enforcement Oversight — Gain Insight into Federal Enforcement of Patient Assistance and Nurse Educator Programs
  • Ready for Launch? Critical Considerations, Objectives and Decision-Making when Developing and Implementing Nurse Educator Programs
  • Explore Innovative Partnership Opportunities between Industry and Patient Advocates
  • Risk Avoidance in the Patient Journey — Make Privacy a Priority
Register today and save $400 — Be sure to mention promo code “400NEP”.

*Offer valid through 11/1/2019; applies to standard rates only and may not be combined with other offers, promotions or applied to an existing registration. Offer not valid on academic or workshop only registrations. 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.

Wednesday, October 02, 2019

The Big Three Wholesalers: Revenues and Channel Share Up, Profits Down

Next week, Drug Channels Institute will release our 2019–20 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors. It’s the 10th edition of our comprehensive and highly-regarded examination of U.S. prescription drug distribution channels. It will be released on October 8, but is available now for preorder at discounted pricing.

The exhibits below—2 of the 136 in our new report—provide a look at the revenues and market share of the Big Three wholesalers: AmerisourceBergen Corporation, Cardinal Health, Inc., and McKesson Corporation.

As you will see below, the Big Three wholesalers’ revenues continue to grow faster than those of the overall pharmaceutical industry. This growth has increased the wholesale share of the U.S. drug distribution channel and enabled the big to get even bigger. In the report, we document that gross profits have not kept pace with revenues.

For a sneak peek at the complete report, click here to download a free pre-publication draft overview (including the table of contents and a list of exhibits).

Tuesday, October 01, 2019

CBI’s Contracts & Chargebacks Critical Update Summit

CBI’s Contracts & Chargebacks Critical Update Summit
November 14-15, 2019 | Philadelphia, PA
www.cbinet.com/chargebacksupdate

CBI’s Contracts & Chargebacks Critical Update Summit offers an important opportunity to connect with key stakeholders on timely updates in this evolving contracting landscape.

Benefit from tremendous networking opportunities and forward-thinking content addressing strategies for process implementation and collaboration excellence among key stakeholders. Experience an interactive dialogue, best practices and innovative models in a rapidly changing market to maximize stakeholder relationships, improve chargeback processes, navigate class of trade complexities and streamline membership management.

Visit www.cbinet.com/chargebacksupdate for further details and to register. 

Drug Channels readers will save $300 off the standard rate when they 
use code ZAB852 and register prior to October 25, 2019.

This event will kick off on Thursday, November 14 at 3pm with two inclusive summits for operational excellence and re-convene the next day for a full day of benchmarking, learning and networking on the topics that matter most to your organization.

Inclusive, Interactive Workshops on November 14th:
  1. Implement and Operationalize Complex Contracts
  2. Manage Membership and Chargeback Administration
Main agenda topics include:
  • Mitigate Challenges Through Stakeholder Collaboration and Operational Excellence
  • Wholesaler Playbook for Process Optimization in a Shifting Market
  • Navigate Class of Trade Assignments–Maximizing GPO Alignment for Streamlined Workflow
  • Valuable Strategies for Payer Cost Control Approaches
  • Technology Innovation – Advance Data Exchange Through EDI and Blockchain
  • Keep a Pulse on Regulations for Contract Compliance— Chargeback adjudication for 340B Pricing
Request the agenda here and prepare to return to the office armed with critical updates and valuable takeaways.

Visit www.cbinet.com/chargebacksupdate for further details and to register. Drug Channels readers will save $300 off the standard rate when they use code ZAB852 and register prior to October 25, 2019.

CBI will see you there!

*Cannot be combined with other offers or used towards a current registration. Cannot be combined with special category rates, clinic/hospital rates, non-profit rates other offers. 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.

Wednesday, September 25, 2019

Drug Channels News Roundup, September 2019: Amazon + 340B, UnitedHealthcare vs. Hospitals, A Naughty 340B Hospital, Generic Drug Prices, and Hotels

Autumn is here! Curl up with your favorite pumpkin-spiced blog and savor these stories plucked from the Drug Channels patch:
  • Amazon targets 340B
  • UnitedHealthcare shows how providers increase drug prices
  • Another 340B hospital behaves badly
  • The downsides of deflating generic drug prices
Plus, upscale hotel or hospital: Can you tell the difference? (I couldn’t.)

P.S. Join the nearly 8,200 people who follow @DrugChannels on Twitter. My recent tweets have highlighted Amazon’s formulary, Walmart Health, PBM regulation, uninsured, drug price forecasts, CBO scoring, and more.

Monday, September 23, 2019

CBI’s Strategic Medicare Contracting Forum

CBI’s Strategic Medicare Contracting Forum
November 20-21, 2019 | Alexandria, VA
www.cbinet.com/Medicare

CBI’s Strategic Medicare Contracting Forum, taking place November 20-21 in Alexandria, VA, provides bio/pharmaceutical manufacturers with an update on the seismic changes occurring within Medicare. The expert faculty provides insight into the current state of new and proposed regulations, explores what lies ahead and breaks down how these changes will impact your organization. Join colleagues and expert speakers to stay ahead of the curve on Medicare.

Exclusive Offer for Drug Channels Readers:
Register Now to SAVE $400* using promo code TZJ345

You and your team members will benefit from this opportunity by gaining insights from industry experts on the complex changes occurring within Medicare, walking away with critical perspectives and robust knowledge on key topics.

In-Depth Discussions on High-Impact Issues Include:
  • Political and Legislative Trends Impacting Healthcare Coverage and Access – Goldwater Institute
  • Discuss State Efforts on Drug Pricing Transparency for 2020 – Mallinckrodt Pharmaceuticals and Bristol-Myers Squibb
  • Navigate Legislative Proposals to Lower Drug Pricing – U.S. House of Representatives
  • Update on the International Price Index (IPI) Model and the Favored-Nations Clause – Bristol-Myers Squibb and PhRMA
  • Strengthening Medicare Part D for Patients – Pfizer Inc.
  • Assess the Future of Medicare Part D 2.0 – American Action Forum
  • And much more!
Visit cbinet.com/Medicare to view the complete speaker and in-depth session lineup, then register using promo code TZJ345 for this exclusive savings of $400 off!

 *Discount expires 11/19/19; cannot be combined or applied to existing registration. 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.

Thursday, September 19, 2019

Employers Slowly Warm to Point-of-Sale Rebates—But Must Move Faster for Insulin

Third-party payers' benefit designs remain a significant barrier to addressing drug costs. Many continue to use the ever-growing rebate dollars of the gross-to-net bubble to offset overall plan costs rather than reducing patient’s out-of-pocket spending.

Point-of-sale (POS) rebates are one possible benefit design solution. POS rebates directly share with patients the discounts that PBMs negotiate with manufacturers.

A recent survey of large employers by the National Business Group on Health (NBGH) suggests this change may be coming. The survey found that about one in five large employers is using point-of-sale (POS) rebates in their pharmacy benefit plans. The survey found that a further 40% of employers are considering POS rebates for 2021 and 2022.

Pharmaceuticals are the only part of the U.S. healthcare system where the difference between list and net prices is monetized as rebates and redistributed by intermediaries to payers. But we’ve seen that moving to a world without rebates may not be possible, given the drug channel’s entrenched interests and payers’ established economics.

POS rebates may therefore be our most realistic chance for addressing the drug costs of patients trapped in the gross-to-net bubble. Commercial payers and Congress (for Medicare Part D) should get started ASAP with POS rebates for insulin—a highly rebated and massively distorted therapeutic category.

Tuesday, September 17, 2019

Half-Off Sale! Five Major Drugmakers Reveal Vast Gross-to-Net Price Gaps—and Why Rebate Reform Is Still Needed

Five of the largest pharmaceutical manufacturers—Eli Lilly, Janssen, Merck, Novartis, and Sanofi—have now publicly reported the 2018 gross and net price changes for their U.S. product portfolios, along with average discounts from list price. You can find links to the reports below.

These reports shed light on the heated political rhetoric and policy proposals that focus on drugs’ list prices. The reality: brand-name drug makers sold their products at half of those list prices. As you will see, the five companies discounted their average list prices by 44% to 55%.

Four of the five companies experienced a year-over-year decrease in average net prices.

This disparity continues to inflate the gross-to-net bubble. More than half of insured patients’ out-of-pocket prescription costs are tied to the list price, not the post-rebate net cost. That’s why rebate reform is needed. I’ll address the state of point-of-sales rebates in my next post.

Monday, September 16, 2019

CBI’s Gross-to-Net Summit – GTN 2019

CBI’s Gross-to-Net Summit – GTN 2019
November 12-14, 2019 | Philadelphia, PA
www.cbinet.com/GTN

With drug pricing reforms looming and discounts/rebates under tremendous scrutiny, it is pivotal that pharmaceutical and biotech manufacturers stay on the forefront of gross-to-net management. The materiality of GTN deductions has increased in today’s competitive marketplace, and the forecasting, analytics, reporting and oversight of the related processes are paramount.

CBI’s GTN Summit, now in the 9th year, is designed to position your organization for success in the end-to-end management of GTN. You can download the complete agenda here.

Visit www.cbinet.com/GTN for further details and to register. Drug Channels readers will save $400 off the standard rate when they use discount code RZT477 and register prior to October 11th.*

The meeting is coming up on November 12-14 at the Hilton Philadelphia at Penn’s Landing and features expert perspectives from companies such as Adamas, Almirall, Amneal, Astellas, Daiichi Sankyo, Deloitte & Touche LLP, GSK, Impax, Incyte, Kala Pharmaceuticals, Lifestar Pharma, Paratek, Sandoz, Sunovion, Teva and more, all ready to share their insights into strategic forecasting, accounting estimates, analytics and finance reporting strategies, specifically for life science companies.

Whether you are a smaller/emerging company entering the market with a new launch or a company with existing products and more GTN experience, we will arm you with the strategies needed to advance in 2020.

Hot Topics on the Agenda Include:
  • GTN and Strategic Finance in a Revolutionary Marketplace
  • Product Pricing Pressures and Trends within the Payer Marketplace
  • Leading Practices in GTN Management that Drive Success and Add Value
  • End-to-End GTN Excellence – A Blueprint for Organizational Processes, GTN Estimation, Contracting, Transaction Processing and Reporting
  • Right-Fitting a GTN Solution to Effectively and Efficiently Optimize GTN
  • Robotics and Automation Realized
  • Implementing Salesforce Initiatives to Maximize GTN
  • GTN and Revenue Analytics Toolkit – Key Metrics, Standards of Practice and Solutions for Success
Customize Your Experience:
  • Choose from Two Pre-Summit Breakout Seminars:
    1. Industry 101 Boot Camp
    2. Senior Executive Master Class
  • Choose from In-Conference Summits:
    1. Value-Based Contracting Summit
    2. Patient Access Summit
    3. Medical Summit and Industry Updates from HHS
    4. Inventory Summit
    5. Solution Summit
  • Choose from Content Tracks:
    1. Large Pharma
    2. Small/Emerging Biotech
    3. Generic Manufacturers
Download the agenda to plan your sessions and prepare to return to the office armed with critical updates and valuable takeaways.

Visit www.cbinet.com/GTN for further details and to register. Drug Channels readers will save $400 off the standard rate when they use code RZT477 and register prior to October 11th.*

CBI will see you there!

*Cannot be combined with other offers or used towards a current registration. Cannot be combined with special category rates, clinic/hospital rates, non-profit rates other offers. 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.

Tuesday, September 10, 2019

We Shouldn’t Give Up on Biosimilars—And Here Are the Data to Prove it

An interesting spat about biosimilars has emerged between two prominent policy-oriented physicians.

Dr. Peter Bach of Memorial Sloan Kettering and Mark Trusheim of MIT argues that we should “throw in the towel” on biosimilars and begin regulating drug prices.

On the other side, Dr. Scott Gottlieb, a former FDA commissioner, argues that we shouldn’t give up on biosimilars, but instead make structural and legislative changes that would increase competition.

To inform the debate, I share below the latest data on biosimilar adoption. As you will see, adoption rates for the most recently launched products—biosimilars of Neulasta and Epogen—are growing quickly, and prices are declining. These products are penetrating the market much faster than the biosimilars of Remicade did. Substitution rates for the upcoming wave of oncology biosimilars will likely penetrate even faster.

That’s why I concur with Dr. Gottlieb: Regulating prices at this stage of the market’s development is premature. This strategy may save some money in the short run, but it risks destroying a market that is finally beginning to fulfill its promise.

Sunday, September 08, 2019

CBI’s Federal Pricing and Reporting

CBI’s Federal Pricing and Reporting
October 22-23, 2019 | Philadelphia, PA
www.cbinet.com/fedpricing

With legislation and regulation changes on the horizon, CBI’s Federal Pricing and Reporting Summit is a must-attend for bio/pharma manufacturers! You'll learn about best practices and future opportunities directly from government officials, including keynotes from the VA, DoD and PHS, and industry experts on pricing models and processes for complying with complicated rules and regulations.

Visit www.cbinet.com/fedpricing for further details and to register. Drug Channels readers will save $300 off the standard rate when they use code GDK898 and register prior to October 4th.

Take a deep dive into the latest innovations and challenges in federal reporting and contracting, especially as issues surrounding transparency and compliance evolve and offer opportunities for growth. The conference agenda covers the below and more:
  • Review Federal Supply Schedule (FSS) compliance rules post-Acetris Health case with updated knowledge on transparency expectations
  • Examine the possibilities around outcomes-based contracts and other strategies for better compliance and negotiations with the Big Four Federal Programs
  • Managing Refunds of 340B Overcharges and Mitigating Compliance Risk
  • Hear directly from the VA OIG regarding FSS contract compliance and audit expectations
  • Review leading strategies and best practices for coordination with the Department of Defense with new budgeting changes
  • Discuss the impact of drug shortages and limited distribution with an eye towards opportunities for growth and collaboration
Download the agenda here and prepare to return to the office armed with critical updates and valuable takeaways.

Visit www.cbinet.com/fedpricing for further details and to register. Drug Channels readers will save $300 off the standard rate when they use code GDK898 and register prior to October 4th.

CBI will see you there!

*Cannot be combined with other offers or used towards a current registration. Cannot be combined with special category rates, clinic/hospital rates, non-profit rates other offers. 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.

Thursday, September 05, 2019

Preorder Now: Our 2019–20 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors

On October 8, 2019, Drug Channels Institute will release The 2019–20 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors.

This new tenth edition is the most comprehensive, fact-based tool for understanding and analyzing all aspects of the U.S. pharmaceutical distribution industry. It also contains detailed information about the largest companies: AmerisourceBergen, Cardinal Health, and McKesson.

For the 2019-20 edition, we have added 19 additional exhibits and interesting new material, such as a look at the factors that determine executive compensation at the public wholesalers. I’ll share more details when we release the full report.


We are providing you with the opportunity to preorder this thoroughly updated and revised 2019-20 edition at special discounted prices. This means that you can be among the first to access our new report. Those who preorder will receive a download link before October 2.


You can pay online with all major credit cards (Visa, MasterCard, American Express, and Discover) or via PayPal. Click here to email us if you would like to pay by corporate purchase order or check.

Preorder and launch pricing discounts will be valid through October 18, 2019.

If you have any questions before purchasing a license to the report, please email me. As always, thank you for your support of our work.

P.S. The launch date has been updated from October 2,2019, to October 8, 2019.

Wednesday, September 04, 2019

The Shakeout Begins: The Fastest-Growing, Private Specialty Pharmacies of 2018

Time for our review of the Inc. 5000 list, the magazine’s annual ranking of the fastest-growing private companies in the United States. The list—based on revenue growth from 2015 to 2018—offers a valuable snapshot of the dynamic specialty pharmacy industry. Today’s article marks our eighth annual analysis of the list.

The specialty pharmacy industry slowdown meant that fewer specialty pharmacies than ever before were eligible for the Inc. 5000 list. We have identified eight specialty pharmacies in this year’s edition. Annual revenues range from $15.5 million to $726.1 million. For the four companies returning from last year’s list, 2018 sales-weighted average revenues grew by 48%.

This year’s Inc. roster signals that the shakeout is beginning. Fewer new specialty pharmacies are starting up, the bigger companies are getting acquired, and market share is concentrating further with the biggest players. Look for other dramatic changes in the coming year.

The specialty pharmacy industry outlook will be a hot topic at next week’s 2019 NASP Annual Meeting & Expo. I’ll be there, so please share your thoughts with me if you see me there.

Tuesday, September 03, 2019

CBI’s 4th Annual Outcomes-Based Agreements & Innovative Payer Contracting Summit

CBI’s 4th Annual Outcomes-Based Agreements & Innovative Payer Contracting Summit
October 2-3, 2019 | Sheraton University City | Philadelphia, PA
www.cbinet.com/OutcomesContracting

Exclusive Offer for Drug Channels Readers:
Register Now to SAVE $400* using promo code OUT400

The shift from volume to value-based care presents an opportunity for payers and bio/pharma and device manufacturers to explore innovative contracting methods, while demonstrating a commitment to improving clinical outcomes and patient access.

CBI’s 4th Annual Outcomes-Based Agreements and Innovative Payer Contracting Summit, taking place October 2-3 in Philadelphia, is the ideal platform for cross-industry stakeholders to discuss critical strategies on how to navigate the continuous changing policy and regulatory landscape, structure value-based agreements and measure outcomes with real world data. Featured speaking faculty include those representing Titan Spine, Highmark Inc., Sanofi, Avalere Health, Pfizer, Pernix Therapeutics, Curant Health, Ferring Pharmaceuticals and more!

Forward-Thinking Topics of Discussion Include:
  • Evaluate how to target the best opportunities for an integrated delivery and financing system
  • Understand which therapeutic areas payers are looking into and at what level of investment
  • How do you define and derive value from real-world evidence?
  • Identify how Real-World Evidence and Health Economics Outcomes Research coalesce into actionable data generation platforms for internal and external collaboration
  • Examine how drug leasing models for curative cell and gene therapies [CAR-T] work
  • Explore the drug subscription model for direct contracting between employers and life sciences
PLUS! Join us for the pre-conference workshop Change Management for Value-Based Contracting with workshop leaders Nick Merryfield, CEO, Verpora and Omar Ali, Visiting Lecturer, Value-Based Pricing and Innovative Contracting of New Medicines, University of Portsmouth; Former Adviser, NICE.

Download the conference agenda for the complete speaker and session lineup, then register using promo code OUT400 to take advantage of $400 off* the standard rate!

*Discount expires 10/1/19; cannot be combined or applied to existing registration. 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.

Friday, August 30, 2019

340B Program Purchases Reach $24.3 Billion—7%+ of the Pharma Market—As Hospitals’ Charity Care Flatlines (rerun)

This week, I’m rerunning some popular posts while I work on the forthcoming 2019-20 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors. Click here to see the original post and comments from May 2019.

This article was the first of my 2019 series exploring the hidden economic mysteries of the 340B Drug Pricing Program. You can read the full series here: https://drugch.nl/340B


The 340B Drug Pricing Program continues to expand at double-digit rates. According to our government contacts, discounted 340B purchases hit a record $24.3 billion in 2018. That figure is an astonishing 26% higher than its 2017 counterpart.

What’s more, we have found that since 2014, purchases under the program have grown at an average rate of 28% per year. By comparison, manufacturers’ net drug revenues have grown at an average rate of below 5% over the same period. Consequently, the 340B program has grown to account for at least 7% to 8% of the total U.S. drug market.

Nearly all of the billions in 340B discounts have accrued to hospitals. Yet hospitals' charity care has dropped amid the 340B program’s growth. The charts have the details.

So where did the money go? We have no idea, because hospitals and their lobbyists fight any call for them to disclose or account for how they use their 340B profits—while consistently misrepresenting the program's size and growth. Be skeptical when you read random stories about the generosity of a 340B covered entity. As always, the plural of anecdote is not data.

Read on for the latest details and ponder who really benefits from the 340B program's size—and how much longer this shocking growth can continue.

Thursday, August 29, 2019

CVS, Express Scripts, and the Evolution of the PBM Business Model (rerun)

This week, I’m rerunning some popular posts while I work on the forthcoming 2019-20 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors. Click here to see the original post and comments from May 2019.

This article was written before the rebate rule was withdrawn. That's why the PBMs Reborn scenario described below remains relevant.


Over the next week, CVS Health and Cigna will hold their annual investor days. (Links below.) They will offer business and financial overviews of their diverse companies, including an update on the outlook for their pharmacy benefit managers (PBMs).

It’s a tough time to be a PBM. Compensation models are shifting, due to increased scrutiny by payers, regulators, and politicians. Plan sponsors are more sophisticated and seek greater pass-through of rebates, admin fees, and other manufacturer-provided revenues. Network spreads are under pressure, while specialty pharmacy dispensing accounts for a growing share of profits. Plus, the entire drug channel system could move toward a world without rebates.

Below, I update Drug Channels Institute’s look at PBM market share and reflect on four crucial areas in which PBMs’ compensation will be evolving. No PBM discloses detailed information about the sources and composition of its profits, so consider my observations as general guidelines for evaluating the upcoming investor day commentary from management.