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The future of drug rebates: Are they to be or not to be?

by George Van Antwerp, Managing Director, Deloitte Consulting LLP

Nearly half of all Americans (49 percent) have at least one prescription drug, and 12 percent of the population has five or more, according to 2017 data from the Centers for Drug Control and Prevention (CDC). In 2016, $329 billion was spent on prescription drugs—an increase of nearly 30 percent from 2010.1

With so much money at stake,

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Real-world evidence is helping some biopharma companies develop therapies for peanut allergies

by Steve Davis, Deloitte Center for Health Solutions

On July 11, my 10-year-old son ate a peanut. This is hardly a noteworthy event for most kids, but it could be life-changing for him. Unlike the other times Ian has eaten something that contained peanut, this time we weren’t fumbling for an epinephrine auto-injector while speeding to the emergency room. Instead, we sat calmly in our allergist’s office and watched cartoons.

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Five barriers that could keep biosimilar manufacturers from cracking the US market

by James Forsyth, Director, Deloitte MCS Limited, and Cameron McClearn, Principal, Deloitte Consulting LLP

The biosimilars market in the US has lagged well behind the European market for more than a decade.1 While a recent push from the White House could help expand the use of biosimilars in the US, manufacturers could still face some significant challenges there.

In April, the administration released its “blueprint” for lowering drug prices and reducing out-of-pocket costs for US consumers.

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Hospitals look to strengthen the supply chain by producing some generics

by Swati Patel, PharmD, Specialist Leader, Deloitte Consulting LLP

In the late 1920s, Henry Ford owned rubber plants, coal mines, and iron-ore mines to guard against shortages from suppliers. He wanted to ensure that his manufacturing plants always had the raw materials needed to build cars.1

Similarly, some hospitals are looking into producing certain generic drugs to protect against shortages from suppliers that lead to postponed or canceled surgeries.

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Now you’re speaking my language: Value-based contracting should push health care stakeholders to understand each other’s business models and value drivers

by Joseph M. Coppola, Managing Director, Life Sciences Commercial and Market Access Practice Leader, Deloitte Consulting LLP

We all want to offer better value to our customers. Pharmaceutical companies, health plans, hospitals and health systems, and physicians want to provide better health outcomes for lower costs to patients…and to each other. But to each stakeholder, the definition of value can be quite different. Before pharmaceutical manufacturers consider a value-based contract, they could benefit from becoming fluent in the language of each stakeholder and understand how each potential partner defines value.

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Four market realities new pharmaceutical commercial models should consider addressing

by Jeff Ford, Principal, Deloitte Consulting LLP, Principal, Deloitte Consulting LLP

The US pharmaceutical industry’s commercial market has historically been the Wild West. Under a fee-for-service environment, physicians and their patients made many of the care decisions with few restrictions. However, the changing health care landscape, including the move to a value-based health care system, has changed the ability of manufacturers to drive growth through the lever of price.   

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