PBM lobby group: No correlation between drug prices and rebates

A new market analysis from Visante shows no relationship between drug prices and the amount of rebates and discounts pharmacy benefit manufacturers negotiate with drugmakers.

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The analysis — commissioned by the Pharmaceutical Care Management Association, a major PBM lobby group — assessed gross and net sales data for 200 self-administered, patent-protected brand name drugs.

The report found many higher-than-average price increases occurred in drug categories where pharmaceutical companies negotiated fairly low rebates with PBMs. The researchers also noted there were lower-than-average price hikes for drugs where pharmaceutical companies negotiated relatively high rebates with PBMs.

“This study debunks the notion that the prices drugmakers set are contingent on the rebates they negotiate with PBMs,” Mark Merritt, president and CEO of PCMA, said in a statement. “Ironically, many higher priced drugs involve little or no such rebates.”

To read the full report, click here.

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