AstraZeneca, Pfizer and Merck/Schering-Plough Overwhelm All Competitors with Promotion of Their Cholesterol Reducers in the Wake of Generic Introduction in the Class, Cognet-X Inc. Reports.FEASTERVILLE, Pa. -- Acting against the double threat posed by new generic competitors, AstraZeneca, Pfizer and Merck/Schering-Plough joined in a high-stakes promotional battle for preferred status on U.S. health plan formularies during 2Q 06. At the close of the quarter, Crestor, Lipitor and Vytorin, respectively, overtook o·ver·took v. Past tense of overtake. all competitors to become the three most promoted products to leading managed care pharmacy executives, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Cognet-X's PAR-Rx (Promotional Assessment Research) Report(TM). These decision-makers have the ability to influence which drugs are reimbursed by health plans that represent millions of Americans across the country. At stake for brand and generic manufacturers alike: market share in the multi-billion-dollar anti-cholesterol category. Thus, contracting was front and center as the leading cholesterol-lowering brands competed for coveted cov·et v. cov·et·ed, cov·et·ing, cov·ets v.tr. 1. To feel blameworthy desire for (that which is another's). See Synonyms at envy. 2. To wish for longingly. See Synonyms at desire. "preferred" formulary formulary /for·mu·lary/ (for´mu-lar?e) a collection of recipes, formulas, and prescriptions. National Formulary see under N. for·mu·lar·y n. designation. Generic versions of Bristol-Myers Squibb's Pravachol and Merck's Zocor both hit the marketplace in 2Q 06. But while AstraZeneca, Pfizer and Merck/Schering-Plough all sought agreements with their managed care customers, feedback from PAR-Rx panelists showed the companies took different approaches to contracting. With market share in the cholesterol-reducing class Lipitor's to lose, Pfizer used contracting both as a carrot and a stick. PAR-Rx panelists reported that the company offered attractive terms for exclusive preferred formulary position while removing incentives for less-favorable status:
"More aggressive terms offered for Lipitor in exchange for
exclusivity; additional 5%."
"Have removed rebates for formulary position of Lipitor."
"Unwilling to continue rebates at 2nd tier."
Second-quarter product discussions for Crestor indicated that AstraZeneca took a flexible approach to contracting:
"Contract available if Crestor is second step after generic
simvastatin pass-through..."
"Rebates for 2nd tier access."
"Very proactive in the approach to generic Zocor."
In support of Vytorin, Merck/Schering-Plough offered incentives for both exclusive and unrestricted formulary access:
"Improved rebates for exclusive branded statin at second tier."
"Will increase rebates if take prior authorization off. Don't
think we will do."
"Effective 7/1/06 this product will be on Tier 2 with no PA."
Adding to this competitive mix in 2Q 06 was Merck's counterintuitive coun·ter·in·tu·i·tive adj. Contrary to what intuition or common sense would indicate: "Scientists made clear what may at first seem counterintuitive, that the capacity to be pleasant toward a fellow creature is ... strategy of rebating branded Zocor in an effort to displace dis·place tr.v. dis·placed, dis·plac·ing, dis·plac·es 1. To move or shift from the usual place or position, especially to force to leave a homeland: Teva's generic version from Tier 1, generally associated with health plans' lowest co-pays. This drew mixed reviews from PAR-Rx pharmacy executives:
"Move branded Zocor to Tier 1. Great proactive move by Merck
resulting in significant savings for our clients."
"You have to admire Merck for creativity but I'm concerned that
they are undermining the generic product system."
And, though cholesterol reducers were the big story during the second quarter, other brands also were heavily promoted. Tied for fourth most promoted were Novo Nordisk's long-acting basal basal /ba·sal/ (ba´s'l) pertaining to or situated near a base; in physiology, pertaining to the lowest possible level. ba·sal adj. 1. insulin Levemir and Daiichi-Sankyo/Forest Pharmaceuticals' antihypertensive antihypertensive /an·ti·hy·per·ten·sive/ (-ten´siv) counteracting high blood pressure, or an agent that does this. an·ti·hy·per·ten·sive adj. Reducing high blood pressure. n. Benicar. Ortho Biotech's Procrit, an anemia anemia (ənē`mēə), condition in which the concentration of hemoglobin in the circulating blood is below normal. Such a condition is caused by a deficient number of erythrocytes (red blood cells), an abnormally low level of hemoglobin treatment, followed in fifth place. About the PAR-Rx Report(TM) Cognet-X's PAR-Rx Report is a quarterly service that provides pharmaceutical, biotech bi·o·tech n. Informal Biotechnology. biotech Noun short for biotechnology Noun 1. and Wall Street clients with timely, actionable competitive intelligence and analysis related to pharmaceutical/biotech company promotion to influential managed care pharmacy executives. About Cognet-X Inc. Cognet-X is a privately held, employee-owned healthcare research, consulting and software development firm based in Bucks County, PA. Our focus is on providing and developing business intelligence solutions centered on the managed care marketplace for pharmaceutical and biotechnology companies Top 100 Biotechnology Companies The following is a list of the top 100 biotechnology companies ranked by revenue. The first nine companies qualify for the list of the top 50 pharmaceutical companies. . For more information about the PAR-Rx Report(TM) or other Cognet-X products and services, please contact: Rick Bourland Sharon Bender Executive Director, Executive Director, Sales & Marketing Strategic Initiatives 215-396-8300, ext. 103 215-396-8300, ext. 148 rickb@cognetx.com sharonb@cognetx.com |
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