Analysis

CBI’s 13^th Trade and Channel Strategies
December 11-12, 2017 | Philadelphia, PA
www.cbinet.com/trade

Are you ready for some channel strategy? Then join me at CBI’s 13^th Trade and Channel Strategies Conference, being held this December in Philadelphia. CBI’s annual event has become our industry’s premier event focused on bio/pharma trade management.

I’ll be kicking things off with a keynote address titled Drug Channels Update – Things to Watch in 2018. I'll highlight the key trends for the year ahead.

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

Regards,
Adam

A MESSAGE FROM CBI

CBI is thrilled to announce the agenda for the Life Sciences Trade and Channel Strategies Conference! The theme for 2017 is "rewriting the playbook on product-specific network design, contracting and specialty distribution strategy." You can read all about it here.

Led by chairman Jeff Henderson, VP, Managed Markets, Intarcia Therapeutics, Inc., the 13^th annual meeting features a broad range of perspectives:

• Drug Channels Update – Things to Watch in 2018: Adam J. Fein, Ph.D., President, Pembroke Consulting, Inc.; Author, Drug Channels
• Fragmentation and Customization Comes to Pharmaceutical Channels: William Roth, Founding Partner, Blue Fin Group
• Payer Dynamics and Drug Utilization Management: Tracey McGuire, Specialty Services Directors, MedImpact Healthcare Systems, Inc.
• Word on Wall Street Exchange: Goldman Sachs, Marathon Asset Management and RBC Capital Markets
• IDN Partnerships Affecting Patient Journey and Outcomes: Jerry Buller, Director, Specialty Pharmacy Services, Vanderbilt University Medical Center

You’ll also benefit from three tailored content tracks:

• Specialty Distribution and Channel Optimization
• Serialization and Traceability
• Specialty Product Data Strategies

Plus! Develop a playbook during the first-ever product specific strategic showcase. Navigate and optimize distribution strategy based on product type, reimbursement and site of care.

You’ll hear from such companies as Acorda • Apobiologix • Aralez Pharmaceuticals • Axendia • Blue Fin Group • BTG plc • Cardinal Health Specialty Solutions • CoverMyMeds • Eli Lilly • Ferring Pharmaceuticals • Goldman Sachs • Intarcia Therapeutics • IntegriChain • Mallinckrodt • Marathon Asset Management • MedImpact Healthcare Systems, Inc. • Pharma Logic Solutions, LLC • Prometrics • RBC Capital Markets • Takeda Pharmaceuticals • Therigy • ValueCentric • Vanderbilt University Medical Center and more!

Visit www.cbinet.com/trade for further details and to register. Drug Channels readers will save $500 off of the standard rate when you register with discount code GDB273 by October 13^th.*

*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.

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

Autumn is here! Curl up with your favorite pumpkin spiced blog and savor these stories plucked from the Drug Channels patch:

• Stefano Pessina of Walgreens Boots Alliance reflects on the successful Rite Aid deal

• A generic drug maker speculates on using Amazon as a direct-to-patient channel

• A great history lesson on why the U.S. has employer-sponsored insurance

Plus, the Pharmaceutical Research and Manufacturers of America (PhRMA) attacks pharmacy benefit managers (PBMs)…with emojis!

P.S. For my daily cornucopia of interesting news stories, follow @DrugChannels on Twitter.

Next week, Drug Channels Institute will release our updated 2017–18 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors.

Below, we highlight the report’s revenue and gross margin trends for the U.S. drug distribution businesses of the Big Three wholesalers—AmerisourceBergen, Cardinal Health, and McKesson.

As you will see, we project that revenue growth in 2017 will be the slowest since 2013. We estimate that core U.S. drug distribution gross margins peaked in 2015 and have declined ever since.

For a sneak peek at the complete report and its content, download the free overview. Enjoy!

Life Sciences ACO & IDN Collaboration Summit
October 23-24, 2017 | Alexandria, VA
www.worldcongress.com/acocollab

The Life Sciences ACO & IDN Collaboration Summit provides a forum for collaboration to advance ACO, IDN, and life sciences partnerships in population health management.

How will you benefit?

• CMS to provide guidance on regulations, future modeling, and best practices in working within the current system

• Hear firsthand from the C-Suite at ACOs and IDNs as they clearly lay out the opportunities for collaboration in order to improve population health

• Merck Case Study: How ACOs and IDNs are using outcomes research to make decisions on pharmaceutical products

• Geisinger Case Study: Create a systems approach to redesigning primary and specialty care

• Identify key changes that are impacting the sales approaches of manufacturers
  Understand how to align value considerations of ACOs, IDNs, and manufacturers to improve patient outcomes and care coordination

• 6-for-1 ticket pricing! As part of your registration, gain access to any of the co-located events part of the Value-Based Health Care Congress - a 6 track event covering value-based network and contract management, MACRA strategy, ACO strategy, ACO & IDN collaboration, and value-based contracting.

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

The Centers for Medicare & Medicaid Services (CMS) has just released the Average Sales Prices (ASP) reimbursement data for the fourth quarter of 2017. You can download the drug pricing files here.

Below, I use these data to explore the reimbursement and payer dynamics behind the relatively slow adoption of Inflectra, the first biosimilar of Remicade. The introduction of Renflexis, a second biosimilar, will offer additional insights about pricing and channel strategies.

The U.S. biosimilar market is highly underdeveloped compared with our European counterparts. As this case study shows, it’s pretty, pretty, pretty hard to launch a biosimilar.

CBI’s Gross-to-Net Summit
November 15-16, 2017 | Philadelphia, PA
www.cbinet.com/GTN

With the total value of off-invoice discounts and rebates increasing over the last few years, it is pivotal that pharmaceutical and biotech manufacturers stay on the forefront of gross-to-net management. CBI’s GTN Summit, now in the 7th year, is the first step toward positioning your organization for success in the years ahead.

Sessions will focus on strategic GTN forecasting, accounting estimates, data analytics and financial reporting specifically for life science companies. You’ll also hear about health care reform, GTN impacts of coupons and copay programs, revenue recognition based on the new standard, pipeline reserve accruals and much more! You can download the complete agenda here.

In-Depth Workshops and Deep Dive Learning Streams Include:

• Fundamentals of Payer Contracting and Profitable Negotiations
• GTN Channel Profitability and Performance Monitoring
• Models and Simulations for Determining ROI and GTN Impacts
• GTN Efficiency – Digital Capabilities and Robotic Process Automation
• Internal Controls and SOX Compliance
• Accounting & Reporting
• Financial Planning & Analytics
• Contract Strategy & GTN Forecasting

PLUS! Benefit from company-specific content tracks for branded pharma, generics and emerging biotech/new launch.

Visit www.cbinet.com/GTN for further details and to register. Drug Channels readers will save $400 off of the standard rate when they use discount code YKU729 and register prior to October 20th.*

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.

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

It looks like specialty pharmacy merger & acquisition (M&A) activity has slowed down.

In 2017 so far, only seven deals involving specialty pharmacies and infusion services companies have been announced. Each is listed below, along with the 10-year M&A trends.

What’s going on? Are buyers skittish over slower specialty industry revenue growth? Are they nervous about the still-unsettled impact of Direct & Indirect Remuneration (DIR) fees? Are the big dealmakers on the sidelines, digesting their previous purchases? Or will we see a surge of deals before year’s end?

The American Society of Hospital Pharmacists (ASHP) has just released its latest national survey of pharmacy practice in hospital settings. (Free download) I always enjoy this annual treasure trove of insights.

This year’s survey confirms the extent to which hospitals and health systems are pursuing specialty pharmacy dispensing revenues. In 2016, about 1 in 11 hospitals had a specialty pharmacy. However, nearly half of the largest hospitals operated a specialty pharmacy.

Below, I summarize these new data and review hospitals’ motivations for growth. Pharmaceutical manufacturers and pharmacy benefit managers (PBMs) should be wary of the expansion in hospital-owned specialty pharmacies.

CBI’s 9th Federal Pricing and Reporting Summit – VA * DoD * PHS
November 16-17, 2017 | Philadelphia, PA
www.cbinet.com/fedpricing

CBI is pleased to invite you to attend the Federal Pricing and Reporting Summit, being held November 16-17, 2017 in Philadelphia, PA. Drug Channels readers will save $400 off of the standard registration rate when they use discount code JQJ962.*

This must-attend event includes updates from government officials and key stakeholders, plus the opportunity to network and learn from industry counterparts. Stay current on processes and requirements of the VA, DoD and PHS to achieve contracting excellence and develop strategies to enhance stakeholder value and engagement in this highly complex market.

You’ll gain actionable insights from in-depth sessions that cover the most compelling topics related to federal pricing and contracting. Some highlights include:

• Updates and insights on VA Structure and OIG Audit Expectations
• Deep Dive into TAA Non-Compliant Covered Drugs Policy
• Key Decisions and Considerations for New FSS Products and Devices
• VA and DoD Risk-Share Agreement Updates and Explorations
• DLA Troop Support Initiatives and best Practices for Medical Stakeholders
• Trends and Development in DoD Pharmacy Benefit Management
• TRICARE Dispute Resolution, Calculations and Refund Management
• Industry Insights on 340B Reporting Challenges and Best Practices for Program Implementation

Perspectives will include updates from the Department of Veteran Affairs, VA Office of Inspector General, DoD DLA Troop Support, and Former DoD Pharmacoeconomic Center, along with strategies and guidance from Acorda Therapeutics, Amneal Pharmaceuticals, Bayer Healthcare, Chiesi, Eisai, Eli Lilly, Genentech, Horizon Pharmaceuticals, Pfizer, King & Spalding, Sidley Austin and Dave Rice Group.

Download the agenda here, and visit www.cbinet.com/fedpricing for further details and to register. Drug Channels readers will save $400 off of the standard registration rate when they use discount code JQJ962.*

*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.

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

Time for our annual review of the latest Inc. 5000 list, the magazine’s annual ranking of the fastest-growing private companies in the United States. The list offers a valuable snapshot of the dynamic specialty pharmacy industry. This marks our sixth annual review of the list.

We have identified 15 specialty pharmacies on the 2017 list, which is based upon revenue growth from 2013 to 2016. Annual revenues range from $6.4 million to $1.3 billion.

The pharmacies and key stats are listed below. For the nine companies returning from last year’s list, median revenues in 2016 sped ahead by 24%—impressive but slightly slower than last year’s figure.

The specialty industry’s growth is creating a set of large independent specialty pharmacies. Will they keep racing ahead or wipe out?