A new analysis has raised concerns about the Cigna Group’s drug pricing strategy, finding that one of its subsidiaries, Quallent Pharmaceuticals, often charges more for generic medications than competing suppliers, according to a Nov. 7 report from Bloomberg.
The review by nonprofit 46brooklyn Research found Quallent’s generics were priced at the higher end of the market — “typically 33 times more than the cheapest option in the category,” according to Bloomberg. On average, Quallent’s products were priced above 80% of the market maximum.
Quallent does not manufacture its own drugs but relabels products made by other manufacturers and sets its own prices. The unit operates as part of Cigna’s broader drug supply chain, which includes a pharmacy benefit manager and dispensing pharmacies.
Jaya Subramaniam, president of Quallent Pharmaceuticals, defended the pricing in a statement, saying Quallent targets high-quality, affordable products that may not always be the cheapest. “Quallent’s prices are closely in line with the majority of high-quality generic manufacturers — typically within $2 or less,” Ms. Subramaniam told Bloomberg.
Cigna disputed the report’s methodology, saying it was flawed and based on skewed data and outliers.
