Pharmaceutical Commerce - July/August 2011 - (Page 9)

Top News Express Scripts-Medco Deal Will Shake Up Pharma Distribution The $29.1B proposed merger brings more pressure onto manufacturers as buyers consolidate There have been three big retail pharmacy chains (CVS, Walgreens, Rite-Aid), three big PBMs (Caremark, Medco, Express Scripts) and three major wholesalers (McKesson, Cardinal, AmerisourceBergen). The lineups got a little strange in 2007 when CVS and Caremark merged (with CVS beating off a competing offer from Express Scripts); now it gets even more fraught as Express and Medco hook up, in the just-announced $29.1-billion deal, expected to close in the first half of 2012. Express Scripts (actually the smaller company by revenue) will absorb Medco, with Express Scripts shareholders being the majority owner of the combined company. The headquarters will remain at Express Scripts’ in St. Louis, and George Paz, CEO of Express Scripts, will run the combined company. Express Scripts expects to wring $1B in supply chain efficiencies through the consolidation—and it’s worth noting that Medco has nearly twice as many employees as Express Scripts. When (and if ) the dust settles on the deal, the combination will process 30-40% of all US prescriptions, while CVS Caremark will have around 21%, according to Wall Street analysts. While such supply chain efficiencies are undoubtedly achievable, the bigger opportunity is pressuring manufacturers on drug costs. The musical-chairs dance among these trios is already under way. Walgreens and Express Scripts had earlier announced an end to an agreement where Express Scripts prescriptions could be filled at Walgreens retail outlets. Medco had lost a couple major contracts (to CVS Caremark) leading up to the merger announcement. Medco also lost a contract with UnitedHealth, a leading managed-care organization that will operate its pharmacy benefits program on its own (a fact that will be cited in justifying the merger to the Federal Trade Commission, looking at the antitrust aspects of the deal). Express Scripts has been served primarily by Cardinal Health, while Medco has been served primarily by AmerisourceBergen (and represents continued on page 10> Control the whe extreme tempe medical device thers. interventions are most effective for which patients under specific circumstances.” Deloitte’s study notes that PCORI is not the only CER effort in the US, and that it could ultimately have broader influence over healthcare policies, such as pay-forperformance reimbursement rather than the current fee-for-service arrangements, than over comparisons of competitive drug performance. PCORI will also fund full-blown clinical trials, not just the more-typical observational studies of CER. An important role of PCORI is to publicize its findings to the American public, aiming at a better understanding of healthcare choices. And it concludes that the life sciences manufacturers should be preparing for the impact of PCORI’s CER efforts by taking these steps: • Use a comparative-effectiveness “lens” (perspective) during all stages of drug development and marketing, emphasizing the value of treatment • Build a robust clinical informatics function, to measure value at many points along the drug-development process • Shift R&D strategy away from “average performance in large populations” to “patient segments in which optimal outcomes and high compliance rates are achievable.” ratures pha rmaceuticals, s, vaccines e ndless delays global and dom estic distributi on challenging cold chain requirem ents strict shipping regulations matters of life and death harsh weathe r conditions, volcanic eruptio n, avalanches multimilliondollar investme nt bureaucra tic customs practices ro ad constructio n high-profile clinical trials legal and regula tory protocol mu ltiple shipping delays remote locatio ns Protect sensitive payloads against transportation variables. Discover the global packaging solutions company that can reduce your payload risk, transportation costs and packaging waste. GSA Certified ISTA Certified Testing Lab ISO 9001:2008 Certification 877.537.9800 mnthermalscience.com July | August 2011 9 www.PharmaceuticalCommerce.com http://www.mnthermalscience.com http://www.mnthermalscience.com http://www.PharmaceuticalCommerce.com

Table of Contents for the Digital Edition of Pharmaceutical Commerce - July/August 2011

Pharmaceutical Commerce - July/August 2011
Contents
Op-Ed
Top News
Business/Finance
Brand Communications
Supply Chain/Logistics
Manufacturing & Packaging
Legal/Regulatory
Information Technology
PDMA Exhibitors
Meetings and Editorial Index

Pharmaceutical Commerce - July/August 2011

Pharmaceutical Commerce - July/August 2011 - Pharmaceutical Commerce - July/August 2011 (Page Cover1)
Pharmaceutical Commerce - July/August 2011 - Pharmaceutical Commerce - July/August 2011 (Page Cover2)
Pharmaceutical Commerce - July/August 2011 - Pharmaceutical Commerce - July/August 2011 (Page 3)
Pharmaceutical Commerce - July/August 2011 - Contents (Page 4)
Pharmaceutical Commerce - July/August 2011 - Contents (Page 5)
Pharmaceutical Commerce - July/August 2011 - Contents (Page 6)
Pharmaceutical Commerce - July/August 2011 - Op-Ed (Page 7)
Pharmaceutical Commerce - July/August 2011 - Top News (Page 8)
Pharmaceutical Commerce - July/August 2011 - Top News (Page 9)
Pharmaceutical Commerce - July/August 2011 - Top News (Page 10)
Pharmaceutical Commerce - July/August 2011 - Top News (Page 11)
Pharmaceutical Commerce - July/August 2011 - Business/Finance (Page 12)
Pharmaceutical Commerce - July/August 2011 - Business/Finance (Page 13)
Pharmaceutical Commerce - July/August 2011 - Business/Finance (Page 14)
Pharmaceutical Commerce - July/August 2011 - Business/Finance (Page 15)
Pharmaceutical Commerce - July/August 2011 - Brand Communications (Page 16)
Pharmaceutical Commerce - July/August 2011 - Brand Communications (Page 17)
Pharmaceutical Commerce - July/August 2011 - Brand Communications (Page 18)
Pharmaceutical Commerce - July/August 2011 - Brand Communications (Page 19)
Pharmaceutical Commerce - July/August 2011 - Supply Chain/Logistics (Page 20)
Pharmaceutical Commerce - July/August 2011 - Supply Chain/Logistics (Page 21)
Pharmaceutical Commerce - July/August 2011 - Supply Chain/Logistics (Page 22)
Pharmaceutical Commerce - July/August 2011 - Supply Chain/Logistics (Page 23)
Pharmaceutical Commerce - July/August 2011 - Supply Chain/Logistics (Page 24)
Pharmaceutical Commerce - July/August 2011 - Manufacturing & Packaging (Page 25)
Pharmaceutical Commerce - July/August 2011 - Manufacturing & Packaging (Page 26)
Pharmaceutical Commerce - July/August 2011 - Manufacturing & Packaging (Page 27)
Pharmaceutical Commerce - July/August 2011 - Legal/Regulatory (Page 28)
Pharmaceutical Commerce - July/August 2011 - Legal/Regulatory (Page 29)
Pharmaceutical Commerce - July/August 2011 - Information Technology (Page 30)
Pharmaceutical Commerce - July/August 2011 - Information Technology (Page 31)
Pharmaceutical Commerce - July/August 2011 - PDMA Exhibitors (Page 32)
Pharmaceutical Commerce - July/August 2011 - PDMA Exhibitors (Page 33)
Pharmaceutical Commerce - July/August 2011 - PDMA Exhibitors (Page 34)
Pharmaceutical Commerce - July/August 2011 - Meetings and Editorial Index (Page 35)
Pharmaceutical Commerce - July/August 2011 - Meetings and Editorial Index (Page Cover4)
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http://www.nxtbook.com/nxtbooks/pharmcomm/20150506
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http://www.nxtbook.com/nxtbooks/pharmcomm/20130910_hubreport
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http://www.nxtbook.com/nxtbooks/pharmcomm/20130708
http://www.nxtbook.com/nxtbooks/pharmcomm/20130506
http://www.nxtbook.com/nxtbooks/pharmcomm/coldchain2013
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http://www.nxtbook.com/nxtbooks/pharmcomm/20120708
http://www.nxtbook.com/nxtbooks/pharmcomm/20120506
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http://www.nxtbook.com/nxtbooks/pharmcomm/20120102
http://www.nxtbook.com/nxtbooks/pharmcomm/20111112
http://www.nxtbook.com/nxtbooks/pharmcomm/20110910
http://www.nxtbook.com/nxtbooks/pharmcomm/20110708
http://www.nxtbook.com/nxtbooks/pharmcomm/20110506
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http://www.nxtbook.com/nxtbooks/pharmcomm/20100910
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http://www.nxtbook.com/nxtbooks/pharmcomm/201004
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http://www.nxtbook.com/nxtbooks/pharmcomm/20091112
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