Trump Administration Opened Door To Step Therapy And Insurance Giant Plans To Rush In
Step therapy allows insurers to require patients to try cheaper drugs first and see if they fail before moving on to more expensive ones. UnitedHealth has decided to require the method, which is supported by the Trump administration which rolled out new step therapy rules this year. Other pharmaceutical news includes Walgreens' sales and biotech unicorns.
Stat:
Insurance Giant Will Require Medicare Beneficiaries To Try ‘Step Therapy’
One of the nation’s largest health insurers will use “step therapy” in some of its private Medicare plans next year, requiring patients to try cheaper drugs before pricey biologics and other costly medicines. The decision by UnitedHealthcare is among the first signs that insurers plan to take advantage of a Trump administration initiative that policymakers argue will bring down drug costs for consumers. (Swetlitz, 10/12)
The Wall Street Journal:
Walgreens’s U.S. Pharmacy Sales Climb
Walgreens Boots Alliance Inc. said growth in prescription volumes helped lift pharmacy sales in its latest quarter, as the company’s integration of Rite Aid stores expanded its foothold in the U.S. prescription market. Walgreens’s share of the U.S. retail prescription market this year has grown to a company record 21.7%, compared with 20.2% in 2017, Walgreens Chief Financial Officer James Kehoe said Thursday, citing data from health-care research firm Iqvia. (Chin, 10/11)
Bloomberg:
Walgreens Touts Partnerships As Its Rivals Finish Massive Deals
Megamergers are roiling the pharmacy business, but one of the biggest players is betting on smaller pacts to help power its growth. On a conference call with analysts on Thursday, executives from Walgreens Boots Alliance Inc., which runs a pharmacy chain rivaled in size only by CVS Health Corp., emphasized a partnership strategy as a key to driving more customers into its stores. Partnerships “enable us to quickly align our products, services and people to the needs of the rapidly changing and integrated omnichannel marketplace,” Chief Executive Officer Stefano Pessina said on the call. A collaborative mindset “is vital for our growth.” (Langreth, 10/11)
Stat:
Amid A Market Slump, Biotech Makes Room For Unicorns
While biotech’s fortunes have soured on Wall Street this week, the sector’s biggest IPO of the year went off without a hitch Thursday, suggesting investors haven’t lost their appetite for high-risk, high-reward science. Allogene Therapeutics (ALLO), a company focused on cancer, raised more than $300 million in its market debut, securing a valuation of roughly $2.5 billion. And the company got a warm reception in early trading, rising more than 30 percent by mid-morning. (Garde, 10/11)
