Managed Markets in Pharma - A Primer
The managed care model has seen huge growth in the pharmaceutical industry in the US. It is estimated that 85% of all prescription drugs are today reimbursed through a managed care plan, and the remaining 15% of cash paid prescriptions is still shrinking. This proportion is even higher for expensive new specialty pharmaceuticals. Managed markets are the dominant channel for pharmaceutical firms and ensuring unfettered access to their drugs is a critical competitive advantage that could spell the difference between commercial success or failure of the drug.