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November 22, 2016 0

In the past year, news stories have featured multiple outsider challenges to “the Establishment.” Traditional authority faces threats of being upended. Moreover, the challengers seem to have emerged with tsunami-like force, seemingly out of nowhere. Technology makes it easier for like-minded individuals to find each other and collectively demand changes that may shake up the status quo. Since branding uses messaging to reinforce an organization’s or product’s “reason for being,” it is worth looking at what potential shake-ups could mean for the industry.

This is particularly important for advertising agencies serving healthcare and pharma, sectors that have recently faced their own heightened public scrutiny. Turing Pharmaceuticals' Martin Shkreli became the poster boy for corporate greed. Mylan’s EpiPen price increase owned the headlines this summer, and renewed focus on perception of co-pay programs across patients, payers, and physicians. The US Treasury Department blocked Pfizer’s plans to buy Allergan, an acquisition that would have drastically reduced Pfizer’s American tax exposure. And despite the fact that Bill Gates calls the US’s drug-pricing system “better than most,” there is a growing narrative that suggests companies are putting their money into communications to push profits over patient-saving innovations. But do these discussions truly challenge the $21 billion-plus advertising spend of America’s pharma industry?

The conversation may be intensifying due to societal changes, but there have been periodic calls to ban pharmaceutical advertising since Merck ran the first DTC ad in 1981. (A ban would likely be unconstitutional under the First Amendment.) Calls for increased regulations have been considered, as well. The Responsibility in Drug Advertising Act, introduced in February 2016 by Connecticut Congresswoman Rosa DeLauro and Comptroller Kevin Lembo, would place a three-year moratorium on any ads for newly approved prescription drugs. Minnesota Senator Al Franken introduced similar legislation, the Protecting Americans from Drug Marketing Act, which would lead the IRS to stop drug companies from deducting marketing costs of direct-to-consumer (DTC) advertising.

So what’s really going on? Reinhard Angelmar, emeritus professor at INSEAD and an expert on pharma marketing, says criticisms of pharmaceutical advertising are misplaced. “The call for a DTC advertising ban is a desperate attempt to slow down the erosion of organized medicine by tackling the pharmaceutical industry,” Professor Angelmar told Havas Tonic. “The timing is well chosen. It fits the current debate around high drug prices, while diverting attention away from the high price of healthcare.”

Angelmar sees multiple factors eroding the traditional sources of physician power. Web and mobile technologies have increased consumer access to medical information through online sites and digital apps. In addition, Angelmar points to ACA-related price pressures on both patients and doctors, which have led to consumers demanding a greater say in medical decisions. Finally, Angelmar focuses on the expanding sector of nontraditional healthcare providers, including pharmacy-based clinics and nurses, as well as “third-party payers who convert independent physician-entrepreneurs to contracted agents and salaried employees.”

Where does that leave Big Pharma? Or the advertising agencies that service it? Or the media that carry the communications? From Professor Angelmar’s perspective, pharma brands and their marketing partners need to be more proactive in reaching out to multiple constituents. Angelmar believes that doctors and payers, as well as patients, can (and should) be courted as natural allies of DTC: “Develop a plan to improve the perceived value of DTC among physicians,” he says. “What do third-party payers think about DTC? Ensure that they perceive the value of DTC.”

These are good points, and there is evidence that DTC has a real value. For instance, health economist Austin Frakt, in a March 2016 New York Times The Upshot Blog, pointed to multiple studies that demonstrate positive healthcare outcomes generated directly by DTC, ranging from better-informed consumers to better patient care. One study about DTC antidepressants showed that when patients “requested a specific drug, 90% received appropriate care, but not all of it involved drugs.”

Havas Tonic’s learning from a multi-month healthcare panel it ran in 2015 supports these points. Paul Klein, Managing Director of Havas Tonic, says, “Polling consumers about their attitudes toward DTC advertising, we found the most receptive audiences for such marketing were more – not less – informed about healthcare, media, and marketing. The study seems to negate the assertion that advertising exploits vulnerable consumers.”

468027659In fact, the poll suggests that the most engaged audience for such messaging (i.e., “Requestors”) is a sophisticated group. And compared to those polled who feel negatively about DTC (i.e., “Non-Requestors”), this group expressed a sense of empowerment around their healthcare decisions. Take their relationships with doctors. Says Klein, “Compared to Non-Requestors, Requestors expressed feeling far more engaged with their physicians and were conscious about maintaining a patient-doctor dialogue.” This makes sense: The Requestor, after all, is bringing an informed request to their doctor. It is up to the doctor whether or not to grant it.

A compelling aspect of Requestors is their attention to societal values. Pharma brands should take note: Their most engaged customers prioritize companies with a social conscience. For Requestors, this means demonstrating a propensity for innovation. For instance, a company might stress the research as well as the innovation behind the treatments it brings to market. Pfizer’s “Before It Became a Medicine” is one such effort. Consumers care about a brand’s overall societal imprint, and will lean in to companies that work to establish that they are truly keeping the patient top of mind in their efforts. But pharma needs to be careful – if every pharma company comes out with a personal story about why they pursued innovation, the messages will quickly become duplicative and dissonant. We’re already seeing this in consumer perception of patient-assistance programs – if the drugs weren’t so expensive, then there wouldn’t need to be financial assistance.

There are challenges to DTC advertising that need to be taken seriously. Addressing them starts with recognizing that today’s DTC advertising audiences are not mindlessly consuming products. They are thinking carefully about what they purchase, and from which companies they purchase. The most powerful branding for them will acknowledge their hunger for innovation, as well as social consciousness. Equally important, pharma brands (and their marketing partners) have to be more imaginative in thinking about allies, from patients to doctors to payers.

Liz Kane


November 22, 2016 0

Part 3: The Medications

A few months ago, I went for a blood test and found out my A1C was over 10%. This, combined with an unexplained weight loss of about 30 pounds, lead doctors to the obvious conclusion that I had joined the ranks of about 30 million Americans who had diabetes. At this point, the two major questions were which type of diabetes, and how can I treat it? Because it came on suddenly and quite severely, my doctors suspected type 1. I, knowing my diet and physical activity regime over the last 30 years, suspected type 2.

As diabetes is very complex, it's more than just taking medication every day to treat this disease. There is a great deal a patient has to know about diet, exercise, devices, drug interactions, dosing, and testing. As there was so much to take in, I decided to detail my experience as a newly diagnosed diabetic and the challenges I have faced, having spent so much of my time on the marketing side, to now be on the patient side. In this article, I detail my experience with diabetes medications and why I chose the ones I did. My final article in this series will deal with the overall consumer experience.

Upon getting my diagnosis, my doctor prescribed me two things, insulin shots 3 times a day, with meals, and Glimepiride (Amaryl). I was surprised not to receive Metformin, as I heard this was usually a first line treatment, but was told that Glimepiride was secondary to Metformin in history and lack of side effects. For my other prescription, I was given Humalog quick acting insulin, along with a very quick primer on how to use it and instructions on self-dosing.

For reference, my numbers at this meeting were awful. My A1C was around 12%, which equates to a blood sugar around 300 mg/dL. My cholesterol was also awful, with a total of 327 mg/dL. My LDL was 228 mg/dL and my triglycerides were 206 mg/dL. Other endocrine numbers were also terrible but those were the most alarming to me, especially since all of these readings were normal at a physical almost a year earlier.

My instructions were to take the Glimepiride twice a day and take the Humalog twice a day, with 1 unit of insulin for every 40 points of blood sugar over 140 I was getting. Early on, most of my readings were in the 240 range, which equated to 3 units of insulin 3 times per day. The Glimepiride was easy, just a small pill, twice a day, no side-effects. My endocrinologist told me I’d see results pretty quickly if it worked, but I saw almost nothing from the pill alone. A few days later, once I mustered up the nerve to do the injections, I added the insulin to my regimen.

This immediately started to bear fruit, not only reducing my average blood sugar to the low 200s over the next few weeks but controlling my spikes. After a high carb meal, I could hit over 300; but now my spike would usually stay down in the 250 or less range. While this was an improvement, it was still way too high for me.

As far as taking the insulin, the hardest part was doing the injection. My instructions weren’t great and sticking a needle in your own stomach goes against every instinct you have, so it was a hard mental barrier to overcome. The Humalog pen, however, made it much easier than this otherwise would have been. Choosing an insulin dose was incredibly simple, physically injecting and administering the medication was quite simple, and with the insulin not needing refrigeration, it was a matter of keeping it out of heat and direct light, as well as making sure I had the proper equipment.

The needles given to me were Becton Dickinson ultra-thin micro-needles. Supposedly, they are some of the smallest needles on the market and, as my nurse told me, were lubricated to make injection/removal simple and painless. For the most part, this was true. If I could muster up the nerve, the injections were pretty easy, removal was always quick, and there was only occasional some redness or marks at the injection site.

I never really noticed many side effects from either medication or the physical injections, except for an occasional sting when the medicine was being administered. There occasionally may be some small bleeding if I came in at the wrong angle or a sting like getting pricked at the wrong spot if I hit a nerve, but the mental part was much harder than the physical part. I attribute that a lot to the quality of the penlike injection device and the quality of the needles as I don’t know how I could make it through this if I needed individual needles, syringes, and vials as previous diabetics would.

Adding an additional treatment option

While this was starting to move my numbers, I still wasn’t happy with the progress I was making so I requested my doctor add Metformin to my treatment plan. I was told that it could cause stomach discomfort but discounted that as I rarely experience digestive side effects from medication that is prone to cause those, but I erred significantly here. Firstly, I was prescribed 4 XR 500mg pills, 2 each twice a day. The pills are massive horse pills, so they physically aren’t the easiest to take. But the side effects made the experience much worse. At two a day, I experienced mild and occasional discomfort, but three (taken two in the morning and one at night) made things much worse. Frequent diarrhea, stomach pains, and overall discomfort became fairly common. Once I increased to four, it became almost unbearable as it went from an inconvenience to a real impediment in living my daily life.

If I was seeing major results, it would have made the effects more palatable, but I only saw maybe a 20-30 point drop in my already high blood sugar range during this time, to the 180s to low 200s on average. Because the side effect risk with Metformin, other than the stomach issues, was very low, as was the cost, I elected to remain on the medication but wanted to find an additional treatment option to hopefully reduce or replace my reliance on these medications.

I examined many type 1 medications, which are few and far between, as I was told it was likely type 1 early in my journey. Upon finding out a few weeks later that it was type 2, that opened up my world of medication options. I was looking at several, including Actos, Januvia, and Invokana, as I was adamant that I did not want to take any more injections. However, the potential side effects I read on many of these medications was enough to frighten me off, as was the cost on several of them. After further research and seeing that by body did react to insulin, I decided to go with a long-term insulin. I felt it would be the most effective, have the least side effects, and possibly replace one of my other injections so it wouldn’t really be adding to my troubles.

After examining my options, I tried to decide between Toujeo and Tresiba, the two newest on the market. Toujeo had a long-history as a somewhat newer version of Lantus. However, you needed a fairly strict dosing schedule on this insulin. Secondly, the discount program was less than stellar (more on this in my next article). Lastly, the patient reviews I read on Drugs.com for it were really poor, with lots of adverse reactions. While I know that people who have bad experiences are much more likely to post than those with good, I found there to be enough ratings to be of significance and they rated poorly compared to similar products.

I found this not to be the case for Tresiba. The fact that it would work for almost two days gave me some comfort as I was still figuring out my dosing and medication needs so that flexibility was something I valued. I could get it at a very reasonable cost while I tried it out so the financial investment wasn’t terrible. Lastly, the user experiences and clinical trial results for it were very favorable. Therefore, I had no problem anxiously asking my doctor to try Tresiba.

Upon starting Tresiba, about a month after my initial diagnosis, the hardest thing I found about it was the actual purchase (more on this next article). Taking the medication was very similar to the Humalog, with a similar device. However, I found, for whatever reason, it was even easier to take. The injections were simpler and less painful, the needle went in more easily (despite it being the same needle), and the medication caused less of a reaction. The pens also kept a long time, for about 45 days rather than the 30 days as with other pens. For someone like myself, who was put on a very low dose (8 units, even lower than the recommended 10 unit start dose), this allowed me to use the entire pen before expiration, saving me both inconvenience and money.

I was told the Tresiba could take nearly a week to work but within 3 days, my numbers fell substantially. I was getting my first readings in the normal range at that point, well enough that I could both dial back on the Metformin and no longer needed the quick-acting Humalog. Instead of getting in the upper 180s as I was prior to this prescription, I was getting most of my pre-meal readings around 120, with my spikes only going up to around 170 or so. For medical purposes, within a week of Tresiba, I was getting readings akin to what a healthy person would get.

All that was left was to fine tune my medicinal treatment and diet plan. Shortly after starting Tresiba, I spent ten days in Germany on a long-planned vacation. With a diet heavy on beer and pretzels, I was quite nervous what would happen to me, yet I only spiked to over 200 if I was REALLY bad with my diet. I would also come down to normal readings by the next morning and almost never experienced low blood sugar.

Long-term planning

Once I returned home, I was able to normalize my schedule and found even better results. I switched to taking my Metformin to one pill in the morning and two in the evening, from two pills twice a day. Suddenly the unbearable stomach issues I had from taking four pills were nullified almost that day. Furthermore, my waking blood sugar was down from its prior readings of 120-140 to around 90-110. I was so pleased with these results that I quit the Glimepiride entirely without any adverse results about a month later.

Keeping myself only on the 8 units of Tresiba for about two months and 1500 mg of Metformin XR for about a month, I went in for a followup blood test. I figured my A1C would be way down, based on my blood sugar monitor readings and that my diet was better so my cholesterol would be down. However, I was shocked when my results came in. My A1C, which was measured in late July at around 12%, was down all the way to 6.6%, which was pretty much within normal range. I expected improvement, but not that much.

Even more shocking was what happened to my cholesterol. When I took my initial test, my doctor wanted to put me on a statin immediately but I wanted to see what treating the diabetes would do. He approved this line of treatment but said not to expect a significant improvement. Therefore, he was shocked to see most of my numbers were cut nearly in half. Total cholesterol down to 167 mg/dL. Triglycerides down to 113 mg/dL. LDL down to 88 mg/dL. All of these numbers were improvements beyond my best hopes, despite mediocre commitment to diet and exercise. Furthermore, the significant 30 pound weight loss I obtained from diabetes has been maintained.

For now, I am maintaining my treatment of 8 units of Tresiba every morning and 1500 mgs XR of Metformin. I am thrilled with the results and finding that, thanks to the medications I am on, just three months after a terrible diagnosis, I am able to live my life much as before while keeping my numbers in a normal range. Other than annoying side effects from the Metformin, I have very little issues from my treatments. I don’t workout nearly enough and I am not strict about my diet, although I try to avoid high carb sides and desserts, as well as eat smaller portions than before, yet I have still achieved and maintained successful numbers with very few troublesome spikes. I have kept my weight lower; my vitals and cardiovascular numbers have improved considerably. While injecting myself every day is an annoyance, it's not a major problem. I am still hoping for a longer-lasting insulin so I can cut my dosing, but I am comfortable that maintaining this treatment plan and nothing else can lead me to a long, healthy life – something I never thought I’d be able to write a few months back.

Scott Ehrlich


November 15, 2016 0

Appealing to millennials is difficult enough for most industries, however the health insurance industry specifically struggles, as millennials feel invincible, and would rather diagnose themselves through Web MD than visit the doctor. Steve McCallion, CMO and creative director at Zoom+, recognizes this, and has developed a new approach to targeting millennials. McCallion says, “millennials are a healthy group, so you have to figure out how they think of their healthcare on a deeper level…not just something they have to do, but they want to do”. The team at Zoom+ emphasizes the millennial love for wellness, by offering incentives for healthy lifestyles, such as running a marathon. They know this younger age group is much more concerned with eating healthy and staying active than seeking medical intervention. One of their first campaigns was an animation, reminiscent of Schoolhouse Rock! The idea was to take the lengthy and confusing language of the ACA, and put it into a platform that millennials can relate to and understand.

To learn more about how Zoom+ is engaging millennials from MM&A, click here.

Lily Stauffer


November 11, 2016 0

It is finally over. We have a new President elect. We have a relatively unchanged Senate and House. What does this mean for the DTC Industry? Both candidates were critical of the drug companies during their campaign. President-elect Trump has not said anything about DTC, but he has called for price negotiations with drug companies for Medicare. That would greatly affect drug company profit margins and result in R&D and marketing cuts.

My fear is that there will be lots of bi-partisan support for negotiating price. It may be too hard to say no from a Congress anxious to show its populist bent. The drug lobby may be able to convince Trump that cutting their prices through government negotiations has negative consequences on R&D investment. I doubt Mr. Trump has given the drug business much thought beyond his general comment that billions can be saved through tough negotiations.

Bob Ehrlich
“DTC will survive any changes instituted by President Trump.”
-Bob Ehrlich

The good news for drug companies is there will be a move towards less regulation. I also expect an FDA that is quicker to act on drug approvals. Clearly Trump will want both drug companies and device makers to get cost effective drugs out to the marketplace faster.

Now what about Obamacare? It has proven to be a difficult program to afford for many Americans. Despite the high cost, most of those insured under it will still want access to insurance. Trump will push for more free market options including opening up the insurance market nationally. He will likely have a subsidized program for Americans with pre-existing conditions.

DTC will survive any changes instituted by President Trump. While prices may be pressured to stay lower, I do not think Trump and his business advisors want to kill the drug industry through punitive regulations. Trump is not Bernie Sanders who wanted to punish “evil” drug companies. I am hopeful that a free market oriented approach to health care will be good for America. Opportunities will be plentiful for companies promoting evidence based approaches to delivering care more efficiently.

The Republican Senate and House should be relatively drug company friendly as long as they are not seeing sharply rising prices. The drug companies must exercise some restraint by keeping price increases related to inflation or other justifiable costs. A Trump presidency is highly unpredictable so I expect drug makers to face some uncertainty in the short term.

Bob Ehrlich


November 8, 2016 0

For those below the poverty line, the elderly and the disabled, often their ability to visit the doctor depends heavily on available transportation. A 2005 study revealed that an estimated 3.6 million people do not receive nonemergency care for this reason. Uber, the leading ride-sharing technology company recognized this problem, and collaborated with Circulation, a technology company to launch a pilot program aimed decreasing the frequency these demographics miss doctor’s appointments. The program will be launching at Boston Children’s Hospital, the Mercy Health System in Philadelphia, and the Nemours Children’s Health System in Delaware. When asked his thoughts on the program, Chief Innovation Officer at Boston Children’s Hospital, John Brownstein stated, “A no-show? That’s a cost to the system. There’s [also] a downstream impact on the patients”.

To read more about Uber’s pilot program from MM&M, click here.

 

Lily Stauffer


November 4, 2016 0

After years of unbranded ads for shingles, Merck is now promoting its vaccine by brand name. Why the change? Glaxo just filed for approval for its shingles vaccine and Merck now needs to build up the brand Zostavax. When doctors had one choice Merck did not need consumers to ask by brand name. Soon asking doctors about shingles will not necessarily mean getting Zostavax.

Merck’s Zostavax ad is very different from the Terry Bradshaw disease awareness ads. It shows an active senior aged woman swimming and a voice over describing a slower immune system can lead to shingles. The ad is using British accented actors to represent the virus and the vaccine. I guess there is something about a British accent that adds gravitas.

Bob Ehrlich
“Merck now needs to build up the brand Zostavax.”
-Bob Ehrlich

There are only a few vaccine ads using DTC. Theraflu, Fluzone, and Prevnar 13 are some that have used television. Vaccines are a tough area for DTC because of the relatively low revenue stream they provide. A shot annually, or every five to ten years, does not lend itself to easy payback. Prevnar 13, based on its ongoing spending, appears to be very successful in generating sales. Flu commercials are done only in season so they have a short burst media strategy which helps ROI metrics.

Shingles is a year round problem. It is relatively rare arising in 200,000 people annually. That is about 10 cases for every 1000 people age 60+. About only 28% of the senior population have been vaccinated so there is a lot of room to grow. Clearly Zostavax has the goal to get their brand awareness up in advance of a Glaxo entry. This new 75 second ad is well done as it illustrates what shingles is and how is occurs. Its tone is serious and informational. The swimmer never speaks as the audio track is a play between the voice of the virus saying it is lurking inside and the vaccine saying how it will help prevent outbreaks.

The disease ads previously had Bradshaw and others discuss the painful outbreaks they faced. This ad is more of an announcement type ad relying on the basic information of what shingles is and how Zostavax works. I liked the real people testimonials in the disease ads but understand why as an announcement ad for the brand Merck went this way.

My guess is Merck will shift back to testimonials after establishing strong brand awareness. Their priority now is to get the name Zostavax strongly remembered as the shingles solution. Once Glaxo is out there with its version, Merck will need to offer competitive differentiation. For now, this ad will get the job done.

Bob Ehrlich


November 1, 2016 0

A few years back, Remedy Health Media launched a set of stories meant to help bring patients’ stories to life, following their “Live Bold, Live Now” platform. Today, the company pulled inspiration from the widespread popularity of “Humans of New York”, by launching two new initiatives looking to foster personal engagements with patients.

Their new goal is to reach patients who want snippets of personal stories, those that either already have a large knowledgebase of their condition, or those who are not willing to commit the time to watching long videos and blogs. Jim Curtis, president of advertising at Remedy, notes that “we’re looking at Instagram and other publishers that are really able to tell a story in a moment”.

To learn more about Remedy’s two new initiatives from MM&M, click here.

Lily Stauffer


November 1, 2016 0

Pharma marketers and advertisers are posed daily with the challenge of portraying information about conditions that people do not talk about publically. In an attempt to unveil such conditions, Takeda launched “IBD Unmasked”, a global campaign aiming to raise awareness of IBD, a condition that affects five million people globally. The company are the first in the pharmaceutical space to partner with Marvel Custom Solutions, having super heroes portray patients suffering from IBD.

The campaign was launched initially in July, however the first chapter of the comic book became available last week at London’s Comic Con. One of the primary characters in the book, Samarium, is a young US research scientist who suffers from ulcerative colitis, but possesses super strength, speed and agility.samarium

Head of global product and pipeline communication, Elissa Johnsen was quoted saying “At Takeda we believe that IBD Unmasked will continue to celebrate the strength that real life IBD superheroes exhibit every day and go on to spark powerful conversations, transform perceptions, and ultimately improve understanding of the impact of these diseases”.

To read more about this creative campaign from MM&M, click here.

Lily Stauffer


October 14, 2016 0

In an attempt to mandate lower drug prices California is asking voters to mandate state agencies pay no higher than the Veterans Administration (VA) rate. The VA gets lower negotiated rates than most other payers by as much as 40%. The VA has a formulary and dictates the prices it will pay. Proponents of Prop 61 say it will lower drug prices because it says drug companies can only receive the lower VA price.

Bob Ehrlich
“Price controls rarely work in practice”
-Bob Ehrlich

It sounds nice but price controls rarely work in practice. Drug companies do not have to sell to anyone. They may just decide the VA price is just too low to justify the sale. Californians may miss out on those newer drugs that drug companies refuse to sell them at the VA price. The VA because it negotiates these low prices does not provide veterans with many of the newest drugs.

Drug companies may face this type of bill in other states. That means they may decide not to sell to the VA at current prices because they know it is the new benchmark used by the states. Therefore, they may play hardball with the VA and thus veterans may not even get the drugs on the current formulary.

Drug price controls sound great but proponents think that they can dictate prices to drug companies and nothing will change. Drug companies will respond by refusing to sell at government mandated prices, or try to raise prices elsewhere to compensate. Anytime the government tries to mess with free market prices problems arise in supply. Liberals, who usually have never run a business, seem to think that the profit motive is ethically wrong. They feel they can decide what a company should make in profit.

Maybe some drug companies will sell California its drugs at VA prices. Many will just forgo the sale knowing the slippery slope they face in other states if they cave to California. Citizens have legitimate concerns over drug prices but price controls have unintended consequences that will reduce choice for those citizens. Prop 61 may pass but it will not be good for Californians when they see newer drugs are no longer sold to them at mandated bargain prices.

Bob Ehrlich


October 13, 2016 0

Contrary to popular belief that soaring drug prices translates to growing wealth for manufacturers, the royalties within the insulin market are going directly to the middlemen. Also known as pharmacy-benefit managers (PBMs), their purpose in the market is to negotiate rebates and fees based on list prices. In light of the recent price increase of Mylan’s EpiPen, angry consumers are voicing their opinions about the high list prices of everyday drugs.

Since 2011, there have been significant insulin price increases from big manufacturers such as Sanofi, Eli Lilly and Novo Nordisk. Harvard professor Aaron Kesselheim suggests that this can in part be attributed to the growing number of patients under high-deductible plans, shifting the cost from the insurer to the consumer.

However, the revenue acquired by the drug maker after discounts has stayed the same, or in some cases even fallen. Reason being, pharmaceutical companies compete to remain on the preferred drug list by offering deeper and deeper discounts. In exchange for their spot on the list, PBMs demand higher rebates, making it difficult for companies to turn a growing profit.

Steve Miller, CMO of Express Scripts, the largest PBM in the U.S., acknowledges that “certain patients get caught in the middle of this, and we have got to figure out how to put guard rails around that,” such as setting a maximum pharmacy price”.

To read more about insulin pricing and reimbursement from the Wall Street Journal, click here.

 

Lily Stauffer