GraphiteRx’s Post

Eli Lilly Chair and CEO Dave Ricks has helped disrupt the healthcare industry with the company’s obesity drugs, but he hopes and predicts that the next decade of transformative medicines will focus on brain health. Dave notes how the science is much more tractable now for neurodegenerative conditions than it has been in the past, and how the world’s most valuable pharmaceutical company is investing in and prioritizing treatments for Parkinson’s, ALS, Alzheimer’s, and more. Listen to Dave's insights on advancing “the last frontier” of brain health, breakthroughs in diabetes and obesity drugs, and more on our recent #GoldmanSachsTalks: https://lnkd.in/eSg6tQaD

I see headlines like this and I die a little inside. Our entire healthcare system is built differently than other countries. Everything from provider visits and tests and hospitals and long term care and yes, drug pricing. There is no appetite to change the foundation, just a remodel here and there and often focused on the relatively small % that is brand drug spend. And who else makes money on the drug spend? A lot of stakeholders (PBMs, wholesalers, GPOs, plans, and yes - pharma companies.) So why are Medicare negotiated prices higher here? There are lots of reasons but the main one, in my opinion, is that we are built to serve a marketplace.

Changes, like the American Rescue Plan Act lowering insulin prices and the introduction of Humira biosimilars post-patent expiration, have decreased drug prices and rebates. This poses a challenge for pharmacy benefit managers (PBMs) to meet rebate guarantees, prompting them to introduce "rebate credit values" for switching to cheaper drugs. While simplifying financial evaluations, this method can mislead budget analyses by inflating drug costs and rebate projections. This discrepancy can harm employer-sponsored health plans that rely on accurate estimates for effective budget management. Lack of transparency and consistency in using rebate credit values may lead to inflated projections, complicating financial planning, and potentially increasing healthcare costs. #PharmacyBenefitManagers #HealthcareCosts #DrugPricing

Changes, like the American Rescue Plan Act lowering insulin prices and the introduction of Humira biosimilars post-patent expiration, have decreased drug prices and rebates. This poses a challenge for pharmacy benefit managers (PBMs) to meet rebate guarantees, prompting them to introduce "rebate credit values" for switching to cheaper drugs. While simplifying financial evaluations, this method can mislead budget analyses by inflating drug costs and rebate projections. This discrepancy can harm employer-sponsored health plans that rely on accurate estimates for effective budget management. Lack of transparency and consistency in using rebate credit values may lead to inflated projections, complicating financial planning, and potentially increasing healthcare costs. #PharmacyBenefitManagers #HealthcareCosts #DrugPricing

🏥 Community Health Systems to utilize 💊 Mark Cuban Cost Plus Drug Company, PBC 🔍 Mark Cuban Cost Plus Drug Co. is now serving as a wholesale drug distributor for all 71 hospitals affiliated with Community Health Systems (CHS)! 💊 Cost Plus Drugs launched with generic medications online with transparent and often inexpensive pricing, and this collaboration marks the first time they’re extending this offering to a large health system. 🏥 CHS hospitals will purchase 12 generic therapies through Cost Plus Drugs Marketplace (For Business), which is the name of their wholesale business. These generics cover a range of conditions, including infections, nausea, glaucoma, acid reflux, and hyponatremia. Mark Cuban Cost Plus Drug Company, PBC aims to make healthcare more affordable. By charging a 15% markup, they’re ensuring hospitals get access to medications without the usual price inflation. Plus, they have direct relationships with major generic manufacturers, streamlining the process. #digitalhealth #healthsystems #healthcareinnovation #healthcare #pharma #genericmeds

As we head into year's end, the pressure on #PBMs is reaching new heights, driven by decades of pharmacy cost increases for #plansponsors and escalating regulatory scrutiny. That's why our co-founder and CEO, A. J. Loiacono, took some time to write an article explaining our current pricing paradox. It dives into the complex dynamics of drug pricing, manufacturers, and PBMs, and it explains how this system mirrors the "Prisoner's Dilemma." Click here to check out AJ's insights and learn what the implications are for plan sponsors and members (hint: it's a sticky situation): https://okt.to/bEL2qu #PBMTransparency #HealthcareEconomics #PharmacyBenefits #drugprices

Innovative life science therapies are a dime a dozen, but the ones accessible to patients will drive success. Knowing that drug prices are most patients' window into the industry, manufacturers and stakeholders must be involved in the pricing decisions, as they should be with every step of the commercialization continuum. Backing pricing with robust data and transparency strengthens go-to-market strategies and reinforces trust with payers, providers, and patients. By embedding transparency into our pricing and product value messaging, we create a stronger foundation for long-term success because bringing therapies to market with measurable value is no longer optional; it's expected. The recent lawsuit against major PBMs and insulin manufacturers underscores a critical lesson for the life sciences industry: transparency in pricing and value creation must be a cornerstone of commercialization. https://lnkd.in/eHRaJywB

As we head into year's end, the pressure on #PBMs is reaching new heights, driven by decades of pharmacy cost increases for #plansponsors and escalating regulatory scrutiny. That's why our co-founder and CEO, A. J. Loiacono, took some time to write an article explaining our current pricing paradox. It dives into the complex dynamics of drug pricing, manufacturers, and PBMs, and it explains how this system mirrors the "Prisoner's Dilemma." Click here to check out AJ's insights and learn what the implications are for plan sponsors and members (hint: it's a sticky situation): https://okt.to/kdABvP #PBMTransparency #HealthcareEconomics #PharmacyBenefits #drugprices

Worth a weekend read if you haven't seen this yet. As we head into year's end, the pressure on #PBMs is reaching new heights, driven by decades of pharmacy cost increases for #plansponsors and escalating regulatory scrutiny. That's why our co-founder and CEO, A. J. Loiacono, took some time to write an article explaining our current pricing paradox. It dives into the complex dynamics of drug pricing, manufacturers, and PBMs, and it explains how this system mirrors the "Prisoner's Dilemma." Click here to check out AJ's insights and learn what the implications are for plan sponsors and members (hint: it's a sticky situation): https://okt.to/o3HKcT #PBMTransparency #HealthcareEconomics #PharmacyBenefits #drugprices

As we head into year's end, the pressure on #PBMs is reaching new heights, driven by decades of pharmacy cost increases for #plansponsors and escalating regulatory scrutiny. That's why our co-founder and CEO, A. J. Loiacono, took some time to write an article explaining our current pricing paradox. It dives into the complex dynamics of drug pricing, manufacturers, and PBMs, and it explains how this system mirrors the "Prisoner's Dilemma." Click here to check out AJ's insights and learn what the implications are for plan sponsors and members (hint: it's a sticky situation): https://okt.to/EhSL7k #PBMTransparency #HealthcareEconomics #PharmacyBenefits #drugprices