Pharmacy Revenues Decline, Thanks to Cheaper Medicines


BIOtech Now
Andrew Segerman

We’ve been saying it for some time, and the numbers speak for themselves: spending on prescription drugs is heading in the right direction – there’s no denying it. Drug prices increased by only 1% over the last year — that’s before factoring in manufacturers rebates and discounts. And data from Prime Therapeutics (a pharmacy benefits manager owned by Blue Cross Blue Shield plans) shows negative growth in net prices for drugs for both government and private payers for 2017 – encouraging numbers to say the least.

But don’t just take our word for it: the latest to join the growing chorus are CVS Health and Walgreens – two of America’s the largest drugstore companies – who have seen their revenues take a hit due to prescription medicines becoming more affordable. As The Wall Street Journal explains, an increase in generic alternatives, along with slowing price inflation for name-brand medications are impacting their bottom lines.

This news, however, shouldn’t come as a surprise. As we’ve pointed out before, efforts to increase competition and access to lower-cost alternatives have helped control drug spending, which this new Journal report confirms.  Check out the full article here.

Full BIOtech Now Article here

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