Analysis

Sigh. Summer is almost over. Time to pack up our bathing suits and send the kids back to school. In the meantime, please enjoy this curated collection of curiosities, combed from the Drug Channels beach.

In this issue:

• Look Who’s Talking—Walgreens CEO Greg Wasson explains his vision
• Look Who’s Lobbying—A 340B vendor gets an unexpected ex-PhRMA ally
• Look Who’s Disappointing—A post-mortem on ACOs' first year

Plus, The Onion examines America’s unquenchable thirst for prescription drugs.

Posted by Drug Channels Institute, an HMP Global company on Tuesday, August 20, 2013

Labels: Health Care Reform, 340B, Accountable Care Organizations (ACOs), Pharmacy

Do you enjoy government pricing and commercial contract operations? Are you on the West Coast? Then attend CBI’s GP and Commercial Contract Operations: A Master Class on Bio/Pharma, which will be held at the Hilton San Francisco on October 22-23, 2013.

Companies on the agenda include CaptureRx, Eli Lilly, Horizon Pharma, Johnson & Johnson, Onyx Pharmaceuticals, Pfizer, Vertex Pharmaceuticals and more.

Drug Channels readers can register with promo code TEY723 and receive $300 off registration. (This discount cannot be combined with other offers or used towards a current registration). Thanks, CBI!

Posted by Drug Channels Institute, an HMP Global company on Monday, August 19, 2013

Labels: Sponsored Post

Today’s guest post is from Chris Cobourn, Senior Vice President, Commercial Compliance, at Compliance Implementation Services (CIS). In the article below, Chris outlines the pharma industry’s new government pricing (GP) challenges and the crucial role of GP professionals. He also summarizes today's crucial uncertainties.

Chris is a knowledgeable insider who speaks from deep experience. When I have a GP question, Chris is one of my go-to-experts. I’ve highlighted many of his articles over the years, most recently in AMP Final Rule Delayed to ... January 2014?

Chris and his colleagues will be at IIR’s Medicaid Drug Rebate Program (MDRP) Summit on September 9-11, 2013. Drug Channels readers can register for the conference with promo code XP1858DRC and save $400 off the standard registrations rates.

Posted by Drug Channels Institute, an HMP Global company on Friday, August 16, 2013

Labels: Sponsored Post, Guest Post

Professional prognosticator EvaluatePharma recently released its World Preview 2013, Outlook to 2018 report, which projects prescription drug sales and R&D activity in the U.S. and abroad. (The report is free with site registration.) You’ll find predictions for the 50 best-selling U.S. drug products on page 25.

Below is my handy summary chart comparing the 2018 list with 2012’s top sellers. Since I last looked at these projections (in Top Ten Drugs of 2016), the list has changed significantly. Highlights of the latest forecasts:

• The number of specialty drugs in the top 10 has dropped vs. the 2016 projections. In 2018, 6 of the 10 best-selling drugs by revenue are projected to be specialty drugs, compared with 3 drugs in 2010 and 5 in 2012.

• The 2018 top 10 U.S. drugs have projected total revenues of $39.7 billion, which will amount to only $2.1 billion more than the top 10 in 2012. Consequently, 2018’s top 10 will also account for a smaller industry share than that of their 2012 counterparts.

• AbbVie’s Humira will remain the top seller, consistent with the article highlighted in the Drug Channels July news update.

Tomorrow’s best-sellers are more likely to target smaller patient populations that have the blockbusters of the past, consistent with the market level projections that I discuss in More Drug Trend Forecasts. Regardless of EvaluatePharma’s ultimate accuracy, it’s clear that the world is changing, so your commercial and channel strategies should change, too. Don't put off until tomorrow what you can do today. (Sorry, I meant to tell you that yesterday.)

Posted by Drug Channels Institute, an HMP Global company on Tuesday, August 13, 2013

Labels: Industry Trends, Specialty Drugs

I want to let you know about CBI’s just-announced event: the Fair Market Value and Bona Fide Service Fees conference. The conference will be held in Philadelphia on October 7 and 8.

As I note in New AMP Rule Targets Bona Fide Service Fees, the Centers for Medicare and Medicaid Services (CMS) is proposing important changes to its interpretation of bona fide service fees. We won’t get clarity until at least January 2014, so this conference is great opportunity to anticipate and prepare for the coming Final Rule. In my consulting work, I find fair market value and bona fide service fees to be crucial topics for building sound specialty channel strategies.

Check out the agenda for more details. Drug Channels readers can register by October 7 with discount code BKA994 and save $300 off registration. Thanks, CBI!

Posted by Drug Channels Institute, an HMP Global company on Monday, August 12, 2013

Labels: Sponsored Post

It’s Shark Week! So, it’s appropriate that we take a look at two recent pharmacy benefit manager (PBM) acquisitions:

• Catamaran announced the acquisition of ReStat. Read the press release.

• TPG, a major private equity firm, announced its acquisition of EnvisionRx. Read the press release.

Below, I examine each transaction. The TPG/ EnvisionRx deal is more significant, because it signals major outside financial investment in restructuring the PBM industry.

With blood in the water, expect PBM consolidation to accelerate. Bigger PBMs have more bargaining power against manufacturers, pharmacies, and wholesalers. Chomp!

Posted by Drug Channels Institute, an HMP Global company on Tuesday, August 6, 2013

Labels: PBMs, Mergers and Acquisitions

I invite you to join me at the Revitas Industry Summit: Life Sciences, which will be held at the Four Seasons Hotel in beautiful Philadelphia, PA, on November 5-6, 2013. Register before August 30, 2013, for special pricing.

I'll be delivering the keynote address, on key trends for pharmaceutical commerce. Last year's event was fun and informative, so I look forward to joining Revitas again.

Official event details below. The Summit will feature an engaging mix of thought leadership and hands-on best practice sessions. You certainly should attend if your job involves anything related to contract management, pricing execution and management, or compliance automation.

And while you're in Philly, be sure to check out one of our 38 essential restaurants!

Posted by Drug Channels Institute, an HMP Global company on Monday, August 5, 2013

Labels: Sponsored Post

Yesterday, Senator Charles Grassley (R-IA) sent a letter to Walgreen’s president and CEO, Greg Wasson. In the letter, Senator Grassley asks uncomfortable questions about the drugstore chain’s profits from the 340B drug discount program. Click here to read the full letter. Highlights below.

As I note in The Coming Battle Over 340B Contract Pharmacies, the 340B contract pharmacy market has exploded far beyond what was considered or intended in the drug discount program’s original legislation. It is rumored that a 340B super-regulation will be coming sometime next year. Let’s hope for substantial reform to the out-of-control contract pharmacy marketplace.

BTW, the letter will also make you double-check your LinkedIn profile. See the cautionary tale below.

Posted by Drug Channels Institute, an HMP Global company on Thursday, August 1, 2013

Labels: Enforcement, 340B, Pharmacy, Pharmacy Economics

Ah, summer! Stay cool with these stories from the wonderful world of Drug Channels. In this issue:

• Top Dollar—Why Humira will be bigger than Lipitor
• Top Jobs—Pharmacists win again
• Top Sleazeball—No jail time for Avastin counterfeit wholesaler?!?

Plus, a cute, yet highly misleading, cartoon explaining healthcare reform. Top spin?

Posted by Drug Channels Institute, an HMP Global company on Tuesday, July 30, 2013

Labels: Enforcement, Health Care Reform, Industry Trends, Drug Counterfeiting, Health Insurance Exchanges

Hey, did you read the latest Semiannual Regulatory Agenda from the Department of Health and Human Services? No?

Well, here's an interesting little factoid buried amidst the administrivia: the long-awaited Final Rule on Covered Outpatient Drugs, a.k.a., the AMP Final Rule, is now scheduled for ... January 2014!

In case you don't feel like trolling through the Federal Register, the brief notice is reproduced below.

As a reminder, the proposed rule regarding Average Manufacturer Price (AMP) under the Patient Protection and Affordable Care Act (PPACA) was released in January 2012. A January 2013 notice suggested that the Final Rule would be released next month, per my not-quite-prescient article: AMP Final Rule is Coming...in August.

So, the deadline has been pushed back again. But, this time is different. Right?

Posted by Drug Channels Institute, an HMP Global company on Friday, July 26, 2013

Labels: Average Manufacturer Price (AMP), Health Care Reform, Generic Drugs, Costs/Reimbursement, Pharmacy