Industry's Rebate Arms Race: Securing Market Access At A Cost
This article was originally published in Scrip
Rebates have become industry's go-to for securing market access for drugs in competitive therapeutic areas in the US. But as payers push back, competitive rebating is intensifying and eating into the bottom line.
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Lilly's chief exec came out strongly in favor of passing rebates onto patients at the point of sale, a big issue of debate in the industry. While it's not surprising that Lilly would be in favor of such a move, Ricks was more outspoken than some of his peers have been.
As Sanofi joined the ranks of pharma companies pledging to limit annual US price increases, the company also released average aggregate list and net prices in 2016, showing net prices declined 2.1%.
Negotiated health plan and PBM rebates and fees have nearly doubled since 2013, PhRMA-commissioned report finds. After other rebates and discounts are added in, manufacturers retained 63% of total gross spending on branded drugs (based on list prices) –a decline, albeit less dramatic, from 2013.