The Trump administration is working on a rule to upend the current drug-price negotiation system by targeting the middlemen in the process, pharmacy benefit managers, or PBMs which currently demand large and secret rebates from pharmaceutical companies in exchange for favoring their drugs in competitive areas.
Ending rebates would help the company to narrow the gap between the list, or sticker price, and the real price of its drugs. That would reduce costs for consumers and potentially boost demand.
Without rebate-driven exclusive contracts, sales volume might go down for certain products. Incentives to favor more expensive products would erode. And it’s not as if Lilly hasn’t benefited from the current system at times this year, for instance, it managed to secure favorable coverage for its copy of Sanofi’s blockbuster insulin Lantus.
This is not an open market condition. Leech on the back of the patient.
This is not an open market condition. Leech on the back of the patient.
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