Starting with the End in Mind: How Pharma Can Build a Smarter Path to Commercialization

Today’s guest post comes from Sean Wagner, VP of Client Partnerships and Carolyn Zele, Advisor, Solution Consulting at MMIT.

Sean and Carolyn argue that planning for a successful drug launch must begin early—often well before Phase III. In this article, they present a six-step framework to help manufacturers align clinical development with payer expectations, patient needs, and real-world access dynamics.

To learn more, view their latest webinar: Meet the Expert: Developing Your Commercial Strategy in Phases II-III.

Read on for Sean and Carolyn’s insights.

The 340B Contract Pharmacy Market in 2025: Big Chains and PBMs Tighten Their Grip

The 340B Drug Pricing Program has emerged as a growing source of profits for pharmacies and pharmacy benefit managers (PBMs).

Drug Channels Institute’s latest exclusive analysis of the 2025 market reveals a highly concentrated market structure increasingly dominated by a handful of major players:

• About 32,000 pharmacy locations—nearly 60% of the entire U.S. pharmacy industry—function as contract pharmacies for the hospitals and federal grantees that participate in the 340B program.

• The 340B contract pharmacy has become increasingly concentrated with five multi-billion-dollar, for-profit, publicly traded pharmacy chains and pharmacy benefit managers (PBMs)—Cigna (via Express Scripts), CVS Health, UnitedHealth Group (via Optum Rx), Walgreens, and Walmart.

The 2025 market data below illustrate just how far the 340B program’s operations have diverged from its original intent. As Senator Bill Cassidy recently noted, the 340B program “was never meant to be part of an earnings call. It was meant to be part of patient care.”

For more on what the 340B program’s growth means for pharmacies, join Adam J. Fein, Ph.D., and Antonio Ciaccia on June 20 for a new live video webinar: What’s Next for Retail Pharmacy: Data, Debate, and Disruption.

Moving Beyond Mitigation: Cracking the Maximizer Code to Protect Patient Affordability

Today’s guest post comes from Logan Melchione, VP of Patient Affordability at Paysign.

Logan explores how maximizers have reshaped the patient affordability landscape and pressured pharmaceutical manufacturers to adapt their copay strategies. In this guest post, she outlines her perspective on the limitations of traditional copay solutions, describes Paysign’s data-driven approach to first-fill identification of maximizer impact, and shares how the company reports saving millions while improving patient access.

To request an analysis of your program’s maximizer exposure risk and learn more about Paysign solutions, email affordability@paysign.com or visit paysign.com/rx.

Read on for Logan’s insights.

Pharmacist Salaries and Employment in 2024: Retail Employment Collapse Offset by Hospital Boom

It’s time for Drug Channels’ annual look at pharmacist salaries and employment.

There was more bad news, as employment in retail pharmacies and drugstores dropped by 8,500 positions in 2024, following a drop of 4,800 positions in 2023. Employment in mass merchants and supermarkets with pharmacies increased. Meanwhile, employment at hospitals surged to a new high, growing by nearly 7,000 positions in 2024.

Average salaries hit $137,000, but varied widely across practice settings. However, salary growth did not keep pace with overall inflation.

Downsizing by the larger pharmacy chains, combined with Rite Aid’s liquidation, means that 2025 looks even grimmer for retail pharmacists. Full salary and employment data below for your enjoyment or sorrow. Click here to share your thoughts on the pharmacist job market with the Drug Channels LinkedIn community.

Jump to:

• Pharmacist Employment Trends

• Pharmacist Salary Trends

• Methodology

UPCOMING LIVE VIDEO WEBINAR!

What’s Next for Retail Pharmacy:

Data, Debate, and Disruption.

Get ready for the future of pharmacy on June 20, 2025 (12:00–1:30 p.m. ET). Dr. Adam J. Fein and Antonio Ciaccia will unpack the good, the bad, and the ugly of the pharmacy industry—and explore what it means for you. This dynamic session will blend expert insights and real-time debate. Click here to register.

Three Ways GoodRx Is Helping Pharmacies Increase Profitability and Drive Innovation

Today’s guest post comes from Aaron Crittenden, President of Rx Marketplace at GoodRx.

Aaron introduces us to GoodRx Community Link, a new offering from GoodRx that allows independent pharmacies to contract directly with GoodRx. 

To learn about GoodRx Community Link, register for GoodRx’s free webinar on either June 3, 2025, or June 4, 2025. Both webinars will be held at 11:00 a.m. ET.

To sign up for the webinar or enter into a direct agreement with GoodRx, pharmacies are not waiving their rights to participate in ongoing litigation against GoodRx. Pharmacies are not required to agree to GoodRx's Terms of Use in order to sign up for the webinar.

Read on for Aaron’s insights.

Drug Channels News Roundup, May 2025: MFN Controversy, Plan Sponsors ♥️ Rebates, PBM Profits, and Fun in Congress

Summer unofficially began over the weekend. To mark the occasion, here are a few hot items, freshly seared on the Drug Channels grill:

• Reactions from the Drug Channels community to the Most Favored Nation (MFN) pricing policy

• A reality check on whether plan sponsors truly want rebate reform

• What plan sponsors should know about the evolving profit models of pharmacy benefit managers (PBMs)

Plus: A special moment for DCI on Capitol Hill.

P.S. Join my 63,000+ LinkedIn followers for daily links to neat stuff, along with sharp and thoughtful commentary from the DCI community.

What’s Next for Retail Pharmacy: Data, Debate, and Disruption.

Don’t miss DCI’s June 20, 2025, webinar, featuring Dr. Adam J. Fein and Antonio Ciaccia. We’ll unpack the good, the bad, and the ugly of the pharmacy industry—and explore what it means for you. This dynamic session will blend expert insights and real-time debate. Join us!

How the IRA’s Part B Coinsurance Inflation Adjustments Can Raise Seniors’ Drug Costs

The Inflation Reduction Act (IRA) is triggering increases in Medicare beneficiaries’ spending on their Part B drugs.

Though CMS touts that the IRA’s inflation-based coinsurance adjustments will "lower out-of-pocket costs," the results have been more complicated. Below, we update and expand on our previous analysis.

We find that a growing number of Part B drugs now have inflation-adjusted coinsurance rates that are rising, not falling. In many cases, the rate dips temporarily before snapping back to the standard 20%.

Even more troubling, these fluctuations have led to unexpected increases in patients’ out-of-pocket expenses—even when a drug’s price was declining.

These unpredictable coinsurance shifts are another example of the IRA’s unintended consequences. Rather than enjoying stable or reduced costs, some seniors are finding themselves on a financial rollercoaster.

What’s Next for Retail Pharmacy: Data, Debate, and Disruption.

Don’t miss DCI’s next webinar on June 20, 2025 (12:00–1:30 p.m. ET), featuring Dr. Adam J. Fein and Antonio Ciaccia. We’ll unpack the good, the bad, and the ugly of the pharmacy industry—and explore what it means for you. This dynamic session will blend expert insights and real-time debate. Hope you can join us!

What’s Next for Retail Pharmacy: Data, Debate, and Disruption (NEW Live Video Webinar)

Dr. Adam J. Fein, president of Drug Channels Institute (DCI) and the author of Drug Channels, invites you to join him for DCI’s new live video webinar:

What’s Next for Retail Pharmacy:
Data, Debate, and Disruption

This event will be broadcast live on:
Friday, June 20, 2025
12:00 p.m. to 1:30 p.m. ET

Dr. Fein will be joined by special guest Antonio Ciaccia, CEO of 46brooklyn Research, and President of 3 Axis Advisors. Adam and Antonio will share their unique insights on the pharmacy market and engage in a dynamic, real-time debate you won’t want to miss!

The webinar will be broadcast live from the Drug Channels studio in beautiful downtown Philadelphia and the 46brooklyn studio in fabulous Columbus, Ohio. It is part of The Drug Channels 2025 Video Webinar Series.

Jump to:

• What you Will Learn

• Pricing Options

• Important Things To Know

WHAT YOU WILL LEARN

Join industry experts Adam and Antonio for an exclusive deep dive and discussion into the latest trends, data, and strategies shaping the retail pharmacy industry. Drawing from their organizations’ respective research, they will provide invaluable insights to help you and your team stay informed about this rapidly changing marketplace.

Topics will include:

• The competitive landscape of retail pharmacy, with exclusive market data from DCI and 46brooklyn

• Key economic trends among leading PBMs and their impact on the market

• PBMs’ controversial effect on pharmacy and how they’re shaping the industry

• The medications driving pharmacy profits and the ones bringing financial pain

• The benefits and shortcomings of state and federal PBM regulations, including a debate over the new Arkansas law

• Exclusive insights into the latest state transparency reports

• The complex roles of pharmaceutical wholesalers in pharmacies’ supply chain

• The risks and rewards of acquisition cost pharmacy reimbursement

• The pros and cons of the 340B Drug Pricing Program for retail pharmacies

• How hospital-owned pharmacies are changing the game

• The outlook for shakeout and consolidation

• Actionable takeaways for pharmaceutical manufacturers and pharmacy leaders

• Emerging controversies, challenges, and threats to watch in the industry

And much more!

As always, Adam and Antonio will clearly distinguish their opinions and interpretations from the objective facts and data.

What’s more, this 90-minute video webinar will feature a live discussion and debate between Adam and Antonio. Watch these two experts challenge conventional wisdom—and each other—in an unprecedented throwdown.

Register now to stay informed and get ahead of the curve on the pharmacy industry!

PRICING OPTIONS

Take advantage of this exclusive educational opportunity for just $420 per viewing device. Once you register, you'll receive a unique Zoom access link within 24 hours—making it easy to add the event to your calendar and ensure you don’t miss out.

Special Discounts For Teams!

We understand that many professionals are working remotely, so we’re offering substantial savings for multiple registrations from the same organization:

• Register multiple devices for as low as $295 each—a 30% discount!
• Unlimited attendees can watch together at a single physical location (one registered device required).

Important Reminder: Each device at a single physical location must have its own registration. The webinar may not be recorded, streamed, broadcast, or shared across different locations, devices, or sites.

Click here to order. All discounts will be automatically computed based on the number of registrations you enter in your cart. (You can reset the cart by entering 0 in the quantity field.)

What’s Next for Retail Pharmacy: Data, Debate, and Disruption

Please contact Paula Fein (paula@drugchannels.net) if you have any questions. If you purchase access for multiple devices, we will contact you for a list of your participants and their email addresses. Or, download this spreadsheet and email your registrants’ information to dcisupport@hmpglobal.com.

Payment can be made with all major credit cards (Visa, MasterCard, American Express, and Discover) or via PayPal. Need to pay via check or ACH? Click here to request an invoice.

IMPORTANT THINGS TO KNOW

• Watch and listen via any device with a web browser (computer, iPad, iPhone/Android, etc.) There is no access via telephone.
• We will use Zoom technology for this webinar. Every registrant will receive an email from Zoom with a link to watch the event. This link is unique to the registrant and can only be accessed once. We recommend that every registrant download the Zoom client software/app.
• Every registrant will receive an email from Zoom with links to download Adam and Antonio’s slides.
• The day after the event, every registrant—whether they attended the live event or not—will receive an email from Zoom with information on how to access a video replay of the live event and download all slides.
• This event is part of The Drug Channels 2025 Video Webinar Series. If you already purchased access to the 2025 Drug Channels Video Webinar Series, then you should have received an email from Zoom with a link to access the June 20, 2025, event.
• Organizations that purchased corporate access for The Drug Channels 2025 Video Webinar Series will receive a custom, branded signup link so employees can easily register. We will automatically refund payments from anyone at a company with corporate access who purchases a single registration using their corporate email account.
• Each registration for a DCI webinar is valid for a single device at a single physical location. Each device at a physical location requires its own registration. Attendees are not permitted to record, stream, share, or project a DCI webinar to other sites or locations. Purchasers who violate this limitation by recording, streaming, sharing, or projecting a DCI webinar to other sites, devices, or locations will be liable for the full cost of all locations that viewed the webinar. DCI reserves the right to prohibit purchasers who violate our terms from attending future DCI webinars.
• Unfortunately, we are unable to offer refunds.

Resetting the Walk-Away Price: How GoodRx Data Reveals New Realities of Prescription Abandonment

Today’s guest post is from Divya Iyer, SVP of Go-to-Market Strategy at GoodRx.

Divya shares new GoodRx data showing that out-of-pocket costs at the pharmacy counter remain a primary barrier to medication adherence. Despite the availability of manufacturer-sponsored support programs, many patients still abandon their prescriptions due to high costs.

To learn about GoodRx’s prescription abandonment solutions, download Reduce Rx Abandonment at the Pharmacy.

Read on for Divya’s insights.

How Large PBMs Make Money Today: A 2025 Drug Channels Update

During my PBM Industry Update: Trends, Challenges, and What’s Ahead video webinar, I explored the latest trends, emerging data, and strategic shifts transforming the pharmacy benefit management (PBM) industry.

In the video clip below, I explain how PBM compensation models continue to evolve:

• Traditional profit sources, such as mail dispensing of nonspecialty drugs and retained rebates, have become less significant.

• Retail network spreads now account for a small portion of large PBMs’ overall profits.

• Specialty dispensing profits, manufacturer administrative fees, and revenues from group purchasing organizations (GPOs) have emerged as major contributors to PBM profitability.

Can’t see the video? Click here to watch the PBM compensation models clip.

Understanding how PBMs generate profits is key to navigating the evolving drug channel landscape. Watch the full webinar replay and download the complete slide deck to explore these dynamics in more depth.

For a more comprehensive analysis of the forces transforming PBMs, see DCI’s 2025 Economic Report on U.S. Pharmacies and Pharmacy Benefit Managers.

From Barriers to Bridges: Rethinking Medication Access for 2025

Today’s guest post comes from Mike Cohn, Vice President, Network Operations at CoverMyMeds.

Mike shares key takeaways on patient access and affordability from CoverMyMeds’ 2025 Medication Access Report. He focuses on the systemic fragmentation that exists across payers, providers, and pharmacies. Mike explains how these silos delay treatment and lead to increased out-of-pocket costs.

To learn how a more connected, patient-centered solution can bridge silos and align clinical and financial realities, register for CoverMyMeds’ free June 12th webinar: Dimensionalization of the Patient Journey.

Read on for Mike’s insights.

Follow the 340B Dollar: Senator Cassidy Exposes How CVS Health and Walgreens Profit as 340B Contract Pharmacies

Two weeks ago, Senator Bill Cassidy—now chair of the Senate Committee on Health, Education, Labor, and Pensions (HELP)—dropped a must-read, eyebrow-raising report on the out-of-control 340B Drug Pricing Program. (Link below.)

The report reveals previously confidential information showing how billions are funneled to health systems and pharmacies—with manufacturers unable to follow the flow.

Below, we use these new disclosures to illustrate the 340B program’s hidden prescription economics for 340B contract specialty pharmacies operated by CVS Health and Walgreens Boots Alliance.

As you can see, the program’s participants earn substantial margins, while plans and third-party payers foot the bill.

What do you think? Click here to share your thoughts with the Drug Channels LinkedIn community.  

Claritas Rx’s Webinar: Achieve Specialty Pharma Success with AI: Enhance Care, Elevate Fill Rates by 20% and Improve Patient Adherence

Participate in Claritas Rx's upcoming webinar to learn innovative strategies designed to increase your fill rates by 20% and enhance patient adherence. The webinar seeks to elevate your operational efficiency and improve patient care standards. 

Join Claritas Rx experts as they lead you through methods intended to optimize patient care coordination, featuring an in-depth real-world case study that demonstrates the impact of these approaches. You will also acquire insights into streamlining patient journey processes with AI.

During this webinar, you will learn:

• Key strategies to boost fill rates by 20% and improve patient adherence in specialty pharma operations
• How to leverage advanced AI solutions to transform and streamline your patient journey processes
• Insights on elevating care standards and maximizing outcomes for success in specialty pharma

Register today to take the lead in achieving success in specialty pharma.

When: May 15, 2025, at 1:00 p.m. ET (10:00 a.m. PT)

Register Here: Achieve Specialty Pharma Success with AI: Enhance Care, Elevate Fill Rates by 20% and Improve Patient Adherence

Presenters:

• Stuart Kamin, SVP, Analytics and Innovation at Claritas Rx

• Karishma Desai, Solutions Consultant at Claritas Rx

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The content of Sponsored Posts does not necessarily reflect the views of HMP Omnimedia, LLC, Drug Channels Institute, its parent company, or any of its employees. To find out how you can publish an event post on Drug Channels, please contact Paula Fein (paula@DrugChannels.net).

Unlocking the Gate: The Critical First 24 Hours of Patient Hub Engagement

Today’s guest post comes from Kristine McGaughey, Vice President, Implementation at ConnectiveRx and Sam Blake, SVP, Hub Product at ConnectiveRx.

Sam and Kristine discuss the importance of the first 24 hours of a patient’s engagement with a hub services program. They outline five reasons why two components—patient enrollment and successful benefits verification—dictate the effectiveness of a patient support program.

To learn more, register for ConnectiveRx’s free June 3 webinar: Unlocking the Gate: The Critical First 24 Hours of Patient Hub Engagement.

Read on for Kristine and Sam’s insights.

Drug Channels News Roundup, April 2025: Amazon Rx Update, Express Scripts’ Spend Trends, Gold Cards, and CMS Acronym Absurdity

Spring has officially arrived at Drug Channels' worldwide headquarters in beautiful downtown Philadelphia. (Photo proof at right.) So, scurry over to this month’s curated crop of noteworthy news:

• Amazon Pharmacy is still coming for retail pharmacy

• Express Scripts revives its long-lost drug trend report

• Prior authorization gold cards: Progress or peril?

Plus, MPPP or not MPPP? That is the question.

P.S. Join nearly 63,000 of your peers who follow me on LinkedIn for daily insights, links to neat stuff, and sharp commentary from the ever-engaged DCI community.

Live from Asembia’s AXS25 Summit: The DCI team is on-site! Swing by booth #1601 at 4 p.m. today for our “Ask Adam Anything” (#AAA) session.

IRA Fallout: What 2025 Medicare Shifts Mean for Patient Access and Market Strategy

Today’s guest post comes from Scott Hughes, Vice President of Strategy of CareMetx.

In this latest analysis from CareMetx, Scott explores how the Inflation Reduction Act (IRA) is reshaping Medicare patients’ access to critical medications across three high-impact therapeutic areas: immunology, oncology, and endocrinology. Drawing on fresh 2025 plan data, he highlights the emerging barriers faced by patients, the shifting demands on providers, and the strategic implications for drug manufacturers.

To learn more, download CareMetx’s complete analysis: The IRA Disruption Report: A Strategic Look at Patient Access Changes.
 
Read on for Scott’s insights.

SAVE THE DATE: Drug Channels Leadership Forum, March 16-18, 2026

After a blockbuster inaugural event and tremendous feedback from attendees, we’re excited to announce that the Drug Channels Leadership Forum (DCLF) returns on March 16–18, 2026, at the Turnberry Resort & Spa in Miami. This one-of-a-kind, off-the-record event convenes senior leaders across the drug channel to address today’s most pressing industry issues.

👉 Request Your Invitation 👈

“I’d recommend the DCLF to anyone in the drug industry in the US. It's a great opportunity to bring together all constituents and members and have a frank sharing of ideas.”
— Timothy Folts, Finance Director of Gross-to-Net Strategy, GSK

WHO SHOULD ATTEND

DCLF is an invite-only, strategic gathering for leaders across the drug channel ecosystem, including:

• Pharmaceutical manufacturers
• PBMs, health plans, and employers
• Health systems and physician practices
• Pharmacies and wholesalers
• Policymakers

“The thing that I think sets it apart is the fact that there are so many different parts of the industry that are represented here.”
— Jeanine Robertson, Director of Pharmacy Network Relations, Liviniti

WHAT TO EXPECT

Expect bold, candid discussions—not just presentations. We’re enhancing the 2026 agenda with new formats and even more opportunities for direct, high-impact exchanges among attendees.

Here’s a glimpse of what made the 2025 event such a success:

• Provocative panels with C-suite executives
• Off-the-record insights and open Q&A sessions
• No exhibit hall, no press, no distractions—just substance

✅ 92% of 2025 attendees said they'd return!

“Sometimes you go to events like this and the chat on stage is completely pre-scripted. But we're not seeing that today, which has really added a robustness and flavor to the overall discussion.”
— Jason Dombi, Senior Vice President of Strategic Solutions, Cencora

WATCH HIGHLIGHTS FROM DCLF 2025

Relive the #DCLF2025 energy and hear testimonials directly from participants.

(Can’t see the video above? Click here.)

SPONSORSHIP OPPORTUNITIES

We limit attendance from industry suppliers (e.g., tech, consulting, financial services) to maintain the event’s strategic focus.

Attendance for suppliers is only available through sponsorship. The number of badges provided depends on your selected sponsorship level.

Learn About Sponsorship Options

“The networking opportunities at DCLF have been impressive.”
— Angie Franks, CEO, Kalderos

A CONFIDENTIAL, INVITE-ONLY EXPERIENCE

To foster open dialogue and protect attendee confidentiality, DCLF is a private event:

• No media or press
• No recording or reporting
• No exhibit hall

If you want to be in the room where it happens, you need to be there in person.

GET STARTED

Be part of the conversation! Join us at DCLF 2026

Invitations will begin going out in October 2025. Don’t wait—our curated guest list fills up fast.

Have questions? Interested in sponsorship? Please contact us or visit us at booth #1601 at Asembia.

Smaller Pharmacies, Bigger Impact: Inside Manufacturers’ Specialty Networks in 2025

Last week, we examined the growing concentration of specialty drug dispensing revenues among the largest pharmacies. See The Top 15 Specialty Pharmacies of 2024: How PBMs, Health Systems, and Independents Are Shaping the Market.

Today, we dive deeper. Drawing from DCI’s new 2025 Economic Report on U.S. Pharmacies and Pharmacy Benefit Managers, we explore how pharmaceutical manufacturers structure their specialty pharmacy networks—and how smaller, independent pharmacies have emerged as dominant players in exclusive networks.

In DCI’s latest analysis, we find specialty pharmacies affiliated with the largest PBMs still play an outsized role in limited networks. But like a certain striped-hatted cat, smaller pharmacies unaffiliated with PBMs show up where few expect them. They dominate exclusive networks and maybe even cleaning up any messes left by Things 1, 2, and 3.

Read on for DCI’s updated profile of specialty networks—and consider why smaller players are showing the good tricks that they know.

Visit Drug Channels in Booth #1601 at #Asembia25 for a Special “Ask Adam Anything” (#AAA) Session

Next week, the Drug Channels Institute (DCI) team will be heading to Asembia’s AXS25 Summit at the always fabulous Wynn Las Vegas.

Thanks to our friends at HMP Global, we’re thrilled to have our very own DCI booth once again!

As you might expect, we'll be showing up in true Drug Channels style. Be sure to swing by booth #1601 for fun, flair, and pharma-frivolity:

• Ask Adam Anything (#AAA). Join DCI president Adam J. Fein, Ph.D., for a special live session during the opening reception on Monday, April 28, at 4:00 p.m. Bring your phone—selfies encouraged!

• Spin the Drug Channels Wheel O’ Fun and win fabulous prizes!

• Request your invitation to the 2026 Drug Channels Leadership Forum! (ICYMI, check out Reflections and Photos from the Inaugural Drug Channels Leadership Forum 2025.)

• Chat with the marvelous Paula Fein, DCI’s intrepid vice president of business development, about sponsorship opportunities for the Drug Channels Leadership Forum 2026!

• Meet Jeana Dollear, the behind-the-scenes dynamo who keeps everything running smoothly.

• Enjoy cupcakes and conversation!

DCI’s booth is conveniently located in the middle of the hall. Check out the handy map below for directions:

[Click to Enlarge]

And remember: What happens in Booth #1601, stays in Booth #1601. 😉

The AI Advantage: When and Where to Apply It in Your Patient Support Program

Today’s guest post comes from William Grambley, Chief Product Officer at AssistRx.
 
William discusses four specific use cases for how AI can create efficiencies and improve patient support programs for both healthcare providers and patients. He provides three considerations that life sciences organizations should evaluate when adopting AI in their patient support programs.
 
To learn more:

• Meet with AssistRx at the Asembia Summit in Las Vegas

• Download AssistRx's latest eBook: AssistRx Q1 2025 Specialty Pharmaceutical Space Progress Report

Read on for William’s insights.

The Top 15 Specialty Pharmacies of 2024: How PBMs, Health Systems, and Independents Are Shaping the Market

Drug Channels Institute’s (DCI’s) latest analysis reveals that PBM-affiliated specialty pharmacies continue to dominate the dispensing of specialty drugs.

DCI has identified nearly 1,900 dispensing locations with specialty pharmacy accreditation. Below, we share DCI’s latest analysis of the top 15 specialty pharmacies, including updated market shares and revenue estimates.

As in prior years, pharmacies linked to the three largest pharmacy benefit managers (PBMs) accounted for two-thirds of prescription revenues from pharmacy-dispensed specialty drugs. We also explore how these pharmacies contribute to PBMs’ profitability—and spotlight the growing influence of provider- and health system-owned dispensing channels.

Once again, “specialty” mostly means affiliated with a PBM.

What do you think? Click here to share your thoughts with the Drug Channels LinkedIn community.

Master the Hidden Economics of Pharmaceuticals—In Under an Hour—with DCI's New eLearning Modules

In today’s fast-moving pharmaceutical marketplace, insight is everything. Whether you're building trust with customers, launching new products, or guiding internal teams, understanding the economic forces that shape drug distribution, reimbursement, and pricing is essential.

At Drug Channels Institute (DCI), we know how critical this knowledge is—and how hard it can be to find credible, up-to-date training that fits into a busy professional’s schedule. That’s why we created our DCI eLearning Modules: a suite of six interactive, expertly narrated courses that deliver must-know insights in 45 minutes or less.

Interested? Contact us to learn how to bring these modules to your team.

View a video about DCI's eLearning modules.

Why Professionals Choose DCI eLearning

These modules were built from the ground up for pharmaceutical professionals—from seasoned experts to newcomers looking to understand the industry's complex web of relationships. Each course distills our signature Drug Channels expertise into engaging, bite-sized lessons that are ideal for:

• Sales and field teams: seeking clearer context for their customer conversations

• Market access, training, and internal strategy groups: who need to understand payer and channel dynamics

• Any professional: ready to level up their understanding of pharmaceutical economics

Each module features:

• Interactive graphics and animations for improved retention

• Expert voice-over narration to guide you through complex topics

• References to key DCI reports for optional deep dives

• iPad compatibility for learning on the go

The modules are available only via a site-wide license, giving your entire organization access through your internal learning platform. We also offer licenses to our secure hosted learning environment—no internal setup required! (Sorry, individual licenses are not currently available.)

What You’ll Learn: A Snapshot of Each Module

1. Follow the Dollar: How Funds Flow in the Distribution and Reimbursement Channels

This foundational course breaks down the financial and product flows in U.S. pharmaceutical distribution. You'll learn how money and medicines move between manufacturers, wholesalers, pharmacies, PBMs, and payers—and how each relationship affects costs and outcomes.

2. The Economics of Retail, Mail, and Specialty Pharmacies

Gain a clear-eyed view of how different pharmacy channels generate revenue and manage costs. Understand reimbursement dynamics, cost estimation methods, and how profitability varies across drug types and dispensing models.

3. The Business of Specialty Pharmacy

Specialty drugs are revolutionizing care—and reshaping the pharmacy business. This module explores how these products are distributed, covered by insurance, and supported through value-added services.

4. The Economics of Provider-Administered Specialty Drugs

Navigate the unique dynamics of provider-administered drugs, from buy-and-bill systems to ASP reimbursement. Understand how coverage types, care sites, and financial relationships affect access and profitability.

5. Understanding Pharmacy Benefit Managers

PBMs wield enormous influence—but many professionals may not fully understand their true impact. Learn how PBMs operate, where they make money, and how they interact with manufacturers, payers, and pharmacies.

6. Pharmaceutical Wholesalers: Business Strategies and Financial Economics

Take a deep dive into how wholesalers operate, generate profits, and provide critical services. You’ll come away understanding the difference between full-line wholesalers and specialty distributors—and why that matters for your strategy.

Want a sneak peek? Request access to our sample module today.

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Bottom line: If you or your team work in any part of the pharmaceutical value chain, DCI’s eLearning modules will make you smarter, faster. They’re the shortest path to mastering the industry's most important (and most misunderstood) topics.

Visit our eLearning page to get started.

Click here if you can't see the video below.

The Hidden Costs of Data Silos: How Pharma Manufacturers Can Stop Revenue Leaks and Strengthen Security

Today’s guest post comes from Jim Hundemer, Chief Information Security Officer (CISO), and Sudhakar Velamoor, Chief Technology Officer (CTO), of Kalderos.

Jim and Sudhakar discuss some of the complex challenges manufacturers face as they deal with outdated data systems, information silos, misapplied discounts, and growing cyber security threats. They argue that these challenges will lead to lost revenue, third-party security breaches, and diminished patient care.

To learn more, register for Kalderos’ April 23, 2025 webinar: The Hidden Costs of Data Silos: Why Data Security & Architecture are Critical.

Read on for Jim and Sudhakar’s insights.

Mapping the Vertical Integration of Insurers, PBMs, Specialty Pharmacies, and Providers: DCI’s 2025 Update and Competitive Outlook

It's time for Drug Channels’ annual update of vertical integration among insurers, PBMs, specialty pharmacies, and healthcare services within U.S. drug channels. As you can see below, we have revised, renovated, and refurbished our infamous illustration of the major vertical business relationships among the largest companies.

Proponents of these vertical integration arrangements argue that they create opportunities to mine healthcare costs. However, these organizations remain highly controversial, due to the potential for anti-competitive behavior. We summarize some of the key issues below.

While some major companies have narrowed their focus or unwound previous integration efforts, ongoing consolidation and selective deconsolidation will continue to reshape the healthcare biome by trying to build something epic, block by block.

What do you think? Click here to share your thoughts with the Drug Channels LinkedIn community.

Inflation-Adjusted U.S. Brand-Name Drug Prices Fell for the Seventh Consecutive Year as a New Era of Drug Pricing Dawns (rerun)

This week, I’m rerunning some popular posts while I prepare for today’s live video webinar: PBM Industry Update: Trends, Challenges, and What’s Ahead.

Click here to see the original post from January 2025.

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It's time for Drug Channels’ annual examination of U.S. brand-name drug pricing.

For 2024, average brand-name drugs’ list prices grew by only 2.3%. What’s more, after adjusting for overall inflation, brand-name drug net prices dropped for an unprecedented seventh consecutive year. Details and additional commentary below.

As I predicted two years ago, the combined impact of changes to Medicaid rebates, the Inflation Reduction Act (IRA), and novel formulary access strategies have led multiple manufacturers to pop the gross-to-net bubble for high-list/high-rebate products. Consider the 18 products with list-price cuts shown below.  Other drugmakers have reduced the rate of price increases, thereby inflating the bubble more slowly.

Employers, health plans, and pharmacy benefit managers (PBMs) determine the extent to which patients with insurance share in this ongoing deflation. But signs of change to the conventional approaches are undeniable.

New channel models—including smaller PBMs, cost-plus pharmacies, patient-paid discount card prescriptions, and manufacturers’ direct-to-patient businesses—are creating novel paths for drugs that can be sold without gross-to-net bubble distortions.

The bubble won’t vanish overnight. But for the first time in years, I can foresee a time when SpongeBob SquarePants will move on from Drug Channels.

Vertical Integration Redux: How Pharmaceutical Wholesalers Are Transforming the Buy-and-Bill Market (rerun)

This week, I’m rerunning some popular posts while I prepare for tomorrow’s live video webinar: PBM Industry Update: Trends, Challenges, and What’s Ahead.

Click here to see the original post from February 2025.

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ICYMI, the largest three pharmaceutical wholesalers—Cardinal Health, Cencora, and McKesson—are using vertical integration to build significant market positions in businesses beyond drug distribution.

In the video clip below, I review the vertical integration status of the largest three pharmaceutical wholesalers, illustrated in the chart below.

[Click to Enlarge]

I also:

• Explain how wholesalers have strengthened their position in buy-and-bill channels for provider-administered drugs through vertical integration with their downstream customers.

• Discuss how and why private equity roll-up activity has provided wholesalers with strategic opportunities to acquire ownership stakes in practice management companies.

• Outline the market access implications for provider-administered biosimilars in the buy-and-bill market.

This video was excerpted from my recent Drug Channels Outlook 2025 webinar. Click here if you can’t see the video below.

For more on the forces of change affecting drug distribution and the buy-and-bill market, see Chapter 6 of DCI’s recent 2024-25 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors.