ICYMI: NEW REPORT SHOWS REBATES NOT TIED TO LIST PRICE INCREASES

Matrix Global Advisors Report Further Undermines Big Pharma’s Supply Chain Blame Game

A new report from Matrix Global Advisors (MGA), “Understanding Drug Rebates and Their Role in Promoting Competition,” finds price trends for rebated and non-rebated drugs were similar over the last four years – further undercutting the repeatedly debunked rhetoric from Big Pharma that claims pharmacy benefit managers (PBMs) and the rebates they negotiate, rather than branded drug companies egregious pricing practices, are the culprit for out-of-control drug prices.

The study analyzed a selection of rebated and non-rebated drugs from the formularies of the three largest PBMs from 2018 to 2021. The results showcase similar increases in wholesale acquisition cost (WAC) price levels for both groups –13.9 percent for non-rebated drugs and 15.6 percent for rebated drugs. This comparable increase demonstrates rebates PBMs negotiate on some drugs are not to blame for increasing list prices, but rather a lack of competition in the marketplace and Big Pharma’s pricing practices.

The report concludes that “market-based strategies [are] most likely to constrain prices,” including “robust competition among drug manufacturers.”

Read the full report from Matrix Global Advisors HERE.

Read more on Big Pharma’s bogus supply chain blame game HERE.

Read more on market-based solutions to hold Big Pharma accountable and lower prescription drug prices HERE.