PHARMA INDUSTRY RISK FACTORS
Drug Manufacturers Risk Factors
- Rebates (not being passed on to Client)
- “Undefined” or “Unnamed” PBM reimbursements
- Formulary steering
- Marketing incentives
- Re-packaging
- Retro-active re-pricing
- Disguising Rebates as other types of payments
- PBM paid to market manufacturer’s drugs
- PBM paid to include manufacturer’s drugs in formulary
(even if higher cost to Client)
- Allowing PBM to re-package & assign a higher Average Wholesale Price “AWP”
- Retroactive price changes that compensate for PBM pricing indiscretions
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