Drugs

PhRMA Study Finds 50% of Drug Pricing Goes to Middlemen, Others

A Pharmaceutical Research and Manufacturers of America (PhRMA)-funded study finds that more than half (50.5%) of every $1 spent on brand medicines went to payers, middlemen, providers, and other stakeholders in 2020. Adding to the debate on what to reform in hopes of reducing drug prices for patients, the study concludes that the share of brand medicine spending retained by biopharmaceutical companies has fallen to 49.5% as rebates, discounts and other payments to the supply chain and other stakeholders steadily increased. The study was conducted by Berkeley Research Group (BRG), which began tracking trends in pharmaceutical spending eight years ago.

“Despite the deep discounts and rebates paid by our industry to health plans and other middlemen, many patients still struggle to afford their treatments,” PhRMA president Stephen J. Ubl says in reaction to the study findings. “When more than half of what is spent on medicines goes to entities that have nothing to do with making them, the system needs to change. These data reinforce why a holistic approach is needed to address conflicts of interest within the health care system that often lead to higher costs for patients.” Key findings include:

2020 signals the first year on record where pharmaceutical benefit managers (PBMs), hospitals, the government, pharmacies and others received a larger share of total spending on medicines than biopharmaceutical companies. The share these stakeholders received increased from 33% in 2013 to nearly 51% in 2020.
Payers are claiming an increasing share of total spending on brand medicines. Insurers, plan sponsors, the government and PBMs received 35% of the increase in total brand medicine spending from 2019 to 2020.
The amount hospitals, pharmacies and other health care providers receive from the sale of brand medicines is also growing -- up to $81 billion last year, from $24.7 billion in 2013.

Gupta Raises Concerns About Overton’s Independence, Ideology

FDA commissioner nominee Heidi Overton’s responses on vaccines, contraception and abortion medication during her 9/24 Senate confirmation hearing raise concerns that ideology could influence her decision-making if she takes over the agency, MSNBC senior medical analyst Dr. Vin Gupta said Friday. Gupta was particularly critical of Overton’

Overton Confirmation Remains Uncertain After Senate Hearing

FDA commissioner nominee Heidi Overton emerged from her Senate confirmation hearing Thursday (see earlier story) without resolving questions about whether she has enough Republican support to advance — and with a rapidly narrowing window for confirmation before the midterm elections. The Senate Health, Education, Labor and Pensions Committee hearing provided few

FDA Classifies Boston Scientific Imager II Catheter Recall as Class I

FDA has classified Boston Scientific's recall of its Imager II Angiographic Catheters as Class I because a manufacturing problem could cause catheter tips to degrade and detach, potentially resulting in life-threatening complications. The agency announced the Class I classification 9/25, updating an Early Alert it issued

FDA Approves Gazyva for Childhood-Onset Idiopathic Nephrotic Syndrome

FDA has approved Roche’s Gazyva (obinutuzumab) for reducing the risk of relapse in adults and children aged 2 and older with frequently relapsing or steroid-dependent, childhood-onset idiopathic nephrotic syndrome who are in remission. The expanded approval covers the use of the CD20-directed antibody beyond its existing

Read more

Gupta Raises Concerns About Overton’s Independence, Ideology

Overton Confirmation Remains Uncertain After Senate Hearing

FDA Classifies Boston Scientific Imager II Catheter Recall as Class I

FDA Approves Gazyva for Childhood-Onset Idiopathic Nephrotic Syndrome