Analysis

Medicaid's impact on the pharma industry is growing. Based on early reports, Medicaid enrollments dominate public exchange sign-ups. Medicaid will be setting the pace for pharmacy reimbursements, per Obamacare Will Squeeze Pharmacy Profits. And, manufacturers will need to wrestle with new guidance on bona fide service fees when the Average Manufacturer Price (AMP) Final Rule is released in January.

Want to learn more? Join me in February, when I'll discuss "How Medicaid Will Shape Pharma’s Future" as the keynote speaker at the 2014 Medicaid Rebate Summit, in Washington, DC. See more below. Check out the Medicaid Rebate Summit blog for regular updates.

Other speakers on this top-notch agenda come from such companies as Amneal Pharmaceuticals, Apexus/340B Prime Vendor Program, Biotechnology Industry Organization (BIO), CMS, Daiichi Sankyo, Dendreon, DHHS, CMS, Eli Lilly, Genentech, Hospira, HP Enterprise Services, HRSA, Iroko Pharmaceuticals, Janssen Pharmaceuticals, Johnson & Johnson, Mylan Pharmaceuticals, NACDS, NCPDP, OIG, Pfizer, Pharmacy Services Manager, Oregon MMIS, Purdue Pharma, Vertex Pharmaceuticals, and more.

Drug Channels readers can register with code DC15 and receive 15% off the standard registration rates. Thanks, Conference Forum!

Posted by Drug Channels Institute, an HMP Global company on Monday, November 4, 2013

Labels: Sponsored Post

Boo! Time for my Halloween-themed roundup of Drug Channels news stories. Never fear. None are as scary as your teenage daughter's Miley Cyrus costume. (Trust me.)

In this issue:

• Zombie Attack: Why Fortune got its Express Scripts "exposé" wrong

• Don’t Fear the Reaper: Walmart lobbies for preferred networks…in Medicaid!

• 340Boo: A superb article on the 340B drug discount program

• Spooky: 10 megatrends for specialty pharmacy

Plus, Secretary of Health and Human Services Kathleen Sebelius provides tips for coping with the healthcare.gov website.

Posted by Drug Channels Institute, an HMP Global company on Thursday, October 31, 2013

Labels: Health Care Reform, 340B, PBMs, Narrow Networks, Health Insurance Exchanges

Here’s some thought-provoking follow-up data, related to McKesson Finally Snags Celesio: Analyzing the Deal.

Tom Gallucci and his team at FBR Capital Markets have updated their estimates for the biggest global drug buyers’ oral solid generic purchasing power. While ABC-Walgreens-Alliance Boots still tops the list, the McKesson-Celesio combination comes close. See the full list below.

Below, I offer some observations on the new global drug procurement landscape. Expect the most colossal conflict the generic industry has ever seen!

Posted by Drug Channels Institute, an HMP Global company on Tuesday, October 29, 2013

Labels: Generic Drugs, Mergers and Acquisitions, International Drug Channels, Pharmacy, Wholesalers, Channel Management

Rejoice, digital marketing execs! IIR’s three-day pharmaceutical industry digital marketing event, ePharma Summit, will be held at the Marriott Marquis New York on February 10-12, 2014.

Speakers come from such companies as athenahealth, AstraZeneca, Boehringer Ingelheim, Bristol-Myers Squibb, Catamaran, CSL Behring, Daiichi Sankyo, futurethink, Geisinger Medical Management, GlaxoSmithKline, Ironwood Pharmaceuticals, Janssen Pharmaceuticals, Merck, Pfizer, Purdue Pharma, Walgreen Co., WEGO Health, and more.

Drug Channels readers can register with promo code XP1906DC and save 10% off the standard registration rate. Thanks, IIR!

Posted by Drug Channels Institute, an HMP Global company on Monday, October 28, 2013

Labels: Sponsored Post

McKesson’s long-rumored acquisition of Celesio was officially announced this morning. Read the press release: McKesson Announces Agreement To Purchase Celesio To Create Leading Global Healthcare Services Platform.

The era of global drug distribution has officially arrived. The combined company will have annual revenues exceeding $150 billion and operate in more than 20 countries. Below, I provide analysis and context for the transaction, along with links to deal documents. I also speculate on Cardinal's next steps.

To help you celebrate—or lament—the deal, we are offering a special flash sale on our new 2013–14 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors. Just use the discount code CELESIO no later than Saturday, October 26, 2013.

Posted by Drug Channels Institute, an HMP Global company on Thursday, October 24, 2013

Labels: Wholesalers, International Drug Channels, Mergers and Acquisitions

Here’s a pre-Halloween scare for pharmaceutical manufacturers. Pharmacy benefit manager (PBM) Express Scripts (NASDAQ: ESRX) will drop 48 brand-name drugs from its 2014 standard national preferred formulary. View the Express Scripts 2014 Preferred Drug List Exclusions.

Steve Miller, Express Scripts’ chief medical officer, gave an enlightening interview in which he explained the changes and exclusion criteria. Links and my highlights below.

Express Scripts is following CVS Caremark’s example, so manufacturers should be unsurprised by another inevitable consequence of the generic wave. Brand-name drugs in highly genericized therapeutic classes face enormous pressure for price and rebate concessions. Tier 3 formulary position no longer guarantees cost-effective patient access. And scariest of all: your pricing actions and marketing tactics increase the risk of formulary exclusion.

Posted by Drug Channels Institute, an HMP Global company on Tuesday, October 22, 2013

Labels: Co-pay Offset Programs, PBMs, Benefit Design, Marketing

Want to learn about the next commercial model for pharmaceutical companies? Curious to know what Pfizer and Novartis are doing?

Then sign up for Eyeforpharma’s Customer-Facing Innovation webinar, taking place on Wednesday, October 30th at 12pm EDT. You’ll hear from Jim Immormino, Head of Commercial Innovation & Strategy at Novartis Oncology and Matt Portch, VP Commercial Model Innovation, Pfizer.

Drug Channels readers can register for free. (Yes, really!)

Customer-Facing Innovation will also be a key topic at eyeforpharma Philadelphia 2014, which will be being held on April 16-17, 2014.

Posted by Drug Channels Institute, an HMP Global company on Monday, October 21, 2013

Labels: Sponsored Post

In my previous post (For 2014, more than 70% of Medicare Part D plans have a preferred pharmacy network), I highlighted the plans that will dominate Medicare Part D with preferred pharmacy networks.

Below, I examine the pharmacies in the biggest plans’ networks. Key conclusions:

• Walmart participates in more Part D preferred networks than does any other chain.
• Supermarket and other mass merchants—such as Kroger, Safeway, and Target—also now big players in preferred networks.
• Among major chains, CVS and Rite Aid are the laggards.
• Once again, independent pharmacies seem to have missed an opportunity.

Read on for what's happening in your world today.

Posted by Drug Channels Institute, an HMP Global company on Thursday, October 17, 2013

Labels: Channel Management, Benefit Design, Narrow Networks, Pharmacy, Medicare Part D

Today, Medicare Part D kicks off its open enrollment period. Through December 7, America’s seniors can keep their current plan or switch to a new one. But the big story is the narrow network boom.

In 2014, preferred pharmacy networks will dominate Part D. There will be 56 plans with a preferred network, up from only 16 plans in 2013. Our analysis reveals that 72% of the nearly 1,200 regional prescription drug plans (PDP) have a preferred network. By the beard of Zeus!

When the first enrollment data are released in January, I predict that a majority of seniors will have chosen a PDP with a preferred pharmacy network.

Read on for our exclusive look at the 2014 Part D landscape, which includes insights on the major health plans behind the PDPs. As always, Drug Channels brings you the news—so you don't have to get it yourself.

Posted by Drug Channels Institute, an HMP Global company on Tuesday, October 15, 2013

Labels: Channel Management, Benefit Design, Narrow Networks, Pharmacy, Medicare Part D

When the Walgreens-Alliance Boots deal was announced, in June 2012, Walgreens projected $100 million to $150 million of combined first-year synergies.

Last week, Walgreens surprised everyone by reporting $154 million of first year “net synergies” with Alliance Boots. The company now projects combined 2014 fiscal year synergies to be $350 million to $400 million. See the highlights below, along with a special video explaining how Walgreens Boots Alliance Development (WBAD) GmbH got its name.

If the companies continue to outperform their synergy targets, expect follow-on deals to create global purchasing scale. According to Dow Jones, the next noteworthy deal might be McKesson’s acquisition of Celesio.

Posted by Drug Channels Institute, an HMP Global company on Thursday, October 10, 2013

Labels: Generic Drugs, Mergers and Acquisitions, International Drug Channels, Pharmacy