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...

Wednesday, June 12, 2019

CVS Health: Will This Giant's Scale and Scope Confound Its Vision for Healthcare?

Last week, CVS Health held its annual investor day. (Links below.) In the aftermath of the Aetna transaction, CVS Health has become a uniquely diverse organization with revenues exceeding $250 billion.

As expected, CVS Health management explained the cost-cutting synergies that it expects from having united CVS Health and Aetna. It also laid out a long-range vision for generating value—and operating income—from making the disparate pieces of its empire work together in new ways. CVS Health called these new products and services “transformational initiatives.”

Below, I summarize investor day high points concerning CVS Health’s overall strategy, offer thoughts on the challenges facing the HealthHUB store concept, and highlight the headwinds and tailwinds affecting the company’s major business segments.

I commend CVS Health’s management for their willingness to take giant steps toward a bold vision. But I wonder if its transformation will scale with the speed and efficiency needed to generate superior returns for CVS Health and its investors. And along the way, how much margin will the company sacrifice to preserve its novel business combination?

Monday, June 10, 2019

CBI's Reimbursement and Access 2019

Reimbursement and Access 2019
August 13-14, 2019
DoubleTree by Hilton Center City | Philadelphia, PA

CBI’s Reimbursement and Access conference returns for the 7th year and takes place August 13-14, 2019 in Philadelphia, PA. This event arms attendees with real-time policy briefings, impactful managed market trends and strategies to ensure product access.

Drug Channels readers: use discount code QEF679 and save $500* off the standard rate when you register by July 19, 2019.

Below is a first look at the robust lineup of esteemed thought-leaders driving this year’s dialogue.
  • Christina Sandefur, Executive Vice President, Goldwater Institute
  • Jeff Henderson, Vice President, Head of Market Access and Government Affairs, Sobi, Inc.
  • J. Gabriel McGlamery, J.D., Senior HCR Policy Consultant, Florida Blue
  • Tami Carten, Executive Director, Market Access, Braeburn
  • Gregory Gierer, Senior Vice President, Policy, AHIP
  • Alex Keeton, Director, Policy Research and Analytics, BIO
  • Christina Simmons, Senior Corporate Counsel, Pfizer Inc
  • Ross Margulies, Associate, Foley Hoag LLP
  • Stacey Worthy, Counsel, Aimed Alliance
  • Kollet Koulianos, MBA, Senior Director, Payer Relations, National Hemophilia Foundation
  • William Daniels, Director, Business and Market Segment Development, Conduent
  • Douglas Neely, CMPE, Head, Global Market Access, Athenex Oncology
  • Rujul Desai, Of Counsel, Covington & Burling LLP
  • Colette Flack, Senior Director, Patient Support Services, Dermira
  • Jesse C. Dresser, Esq., Partner, Frier Levitt, LLC
  • Anthony Scicchitano, Assistant U.S. Attorney, U.S. Attorney’s Office for the Eastern District of Pennsylvania
  • Stuart Bell, Vice President Consulting, Medicines Access, Inceptua Ltd
  • Molly Burich, MS, Director, Public Policy – Biosimilars and Reimbursement, Boehringer Ingelheim
  • Everett Crosland, Vice President, Market Access, Reimbursement and Government Affairs, AppliedVR
  • Andy Molnar, Senior Director, Market Access, Cognoa
Request the full agenda and reserve your seat for this important meeting today.

Plus! Drug Channels readers are entitled to an exclusive $500 discount! Register using discount code QEF679 and save $500* off the standard rate when you sign up by July 19, 2019.

*Offer expires 7/19/19; 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 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.

Wednesday, June 05, 2019

Profits in the 2019 Fortune 500: Manufacturers vs. Managed Care vs. Pharmacies, PBMs, and Wholesalers

Time to dive into our 12th (!) annual review of the Fortune 500 list. Every year, this is one of my most popular posts, because it helps us follow the dollar and understand how drug channel intermediaries make money.

Fortune’s 2019 list contains only six drug channel companies: AmerisourceBergen, Cardinal Health, CVS Health, McKesson, Rite Aid, and Walgreens Boots Alliance.

Consolidation and vertical integration have transformed the channel—and the Fortune rankings. Below you will see our list of the companies that disappeared from the roster. We therefore have added to our analysis the four managed care and insurance companies on the list that operate PBMs.

Using the Fortune data, I explore the profitability and shareholder returns of the largest drug channel and managed care companies. I compare these companies with the Fortune 500’s eleven pharmaceutical manufacturers and with a separate survey of independent pharmacies.

These data remind us that many multi-billion-dollar businesses profit as drugs move through the U.S. reimbursement and distribution system. Enjoy our swim through this crazy complexity.

Monday, June 03, 2019

Medicaid Drug Rebate Program Summit 2019

Medicaid Drug Rebate Program Summit 2019
September 23-25, 2019
Renaissance Chicago Downtown | Downtown Chicago, IL

Join KNect365 for the 24th year of MDRP this September 23-25, 2019 at the Renaissance Chicago Downtown in Downtown Chicago, IL. This is your opportunity to benchmark best practices and gain solutions to overcome new operational challenges brought on by AMP Final Rule, 340B, Medicare Part B, Medicare Part D coverage gap, FSS, VA, OIG, and other critical government programs.

Register Now and use Priority Code P19MDRPDRUG to
SAVE an additional $200 off the current rates (a total of $800 in savings!)

Year after year, MDRP Chicago continues to be an important gathering for everything pricing, rebates, contracting, and collaboration. Ensure you have the most comprehensive educational experience over three days with access to government officials creating regulatory rules, the industry leaders interpreting them, and the pharmaceutical executives implementing them.

Collaborate with your peers and benchmark best industry practices:
  • Navigate Regulatory Hurdles with Comprehensive Coverage of Topics including:
    • State Drug Pricing Transparency
    • Case Study on Value-Based Contracting
    • Innovative Bundling
    • Calculations & Reporting Requirements: Challenges and Innovative Solutions
    • Principles of Reimbursement & Contracting Strategy
    • GTN: Finance, Accounting & Accruals
    • 340B Policy and Process
    • Analytics and Technology
    • Rebate Operations and Disputes
    • Generics and Biosimilars
  • MDRP’s top-notch speaking faculty includes industry leaders you need to hear from:
    • Krista Pedley, PharmD, MS, CAPT, USPHS, Director, Office of Pharmacy Affairs, Healthcare Systems Bureau, Health Resources & Services Administration (HRSA)
    • John D. Shakow, Partner, King & Spalding will provide insights into Medicaid and the changing landscape with the current Administration.
    • Alice Valder Curran, Global Regulatory Practice Group Leader, Hogan Lovells
    • Scott Atlas, MD, David and Joan Traitel Senior Felloe, Hoover Institution, Stanford University
    • External Counsel Roundtable: The State of MDRP - featuring Christopher H. Schott with Hogan Lovells, John D. Shakow with King & Spalding, and Jeff Handwerker with Arnold & Porter Kaye Scholer LLP.
MDRP offers attendees the opportunity for face-to-face meetings between states and manufacturers during our exclusive Dispute Resolution Meetings. These one-on-one meetings can help you realize millions in potential savings!

For 2019, MDRP have a record 21 confirmed states and counting: Alaska, Arizona, Arkansas, Colorado, Georgia, Idaho, Indiana, Kentucky, Maryland, Michigan, Nevada, New Hampshire, New York, North Carolina, Oregon, South Carolina, Tennessee, Texas, Utah, Virginia, Wisconsin.

Stay ahead of the curve by getting the best networking, education, and technology at MDRP Summit 2019

Click Here to Register Now and SAVE an additional $200 off the current rates. Be sure to use Priority Code: P19MDRPDRUG.

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