FTC clears Teva-Cephalon acquisition deal
JERUSALEM — The Federal Trade Commission has given Teva Pharmaceutical Industries the green light to acquire Frazer, Pa.-based drug maker Cephalon, but with some restrictions, Teva said.
Before it can complete the $6.8 billion deal, Teva must sell to Par Pharmaceutical Cos. its generic versions of two Cephalon drugs, namely generic versions of the cancer pain drug Actiq (fentanyl citrate) and the muscle relaxant drug Amrix (cyclobenzaprine), which have combined sales of $298 million per year, according to IMS Health.
Teva also will grant nonexclusive U.S. rights to an undisclosed company to market a generic of Cephalon’s sleep disorder drug Provigil (modafinil), the branded version of which has annual sales of $1.1 billion.
The deal is still subject to the approval of the European Commission, but both companies expect to close it by Friday.
NCPA Digest: Fewer independents but majority operating in underserved communities
NASHVILLE, Tenn. — The number of new independent pharmacies and new prescriptions filled with independents were down in 2010, though the number of refilled prescriptions continued to grow slightly, according to the latest 2011 NCPA Digest, sponsored by Cardinal Health, released Monday by the National Community Pharmacists Association.
Now in its 79th year of publication, the NCPA Digest reports these 2010 findings:
- Fueled by declining reimbursement rates and rising business costs, the number of total independent community pharmacies decreased slightly from 23,117 to 23,064;
- The average independent community pharmacy’s pretax net profit margin fell from 3.2% to 3%;
- Approximately 92% of revenue is derived from the sale of prescription drugs;
- Continuing to fill the void in underserved areas, the number of independent community pharmacies in areas of 20,000 people or less remained constant at 52%;
- There was a small decline in the average amount of prescription drugs dispensed from 64,635 to 64,169, although the number of refills increased slightly;
- Independent community pharmacies set a new high in generic drug utilization, increasing their generic dispensing rate from 69% to 72%;
- The number of prescription drugs dispensed under the Medicare Part D program remained at 30%. In a sign of the tough economy, the number of Medicaid prescription drugs dispensed rose from 14% to 16%;
- Disease state management services (immunization, blood pressure monitoring, diabetes training, etc.) or medication therapy management services were offered by 78% of pharmacies; and
- 90% of independents are connected for e-prescribing.
"The 2011 NCPA Digest, sponsored by Cardinal Health, offers further proof of the adaptability and innovation of independent community pharmacists as they try to overcome significant challenges to keep serving patients," stated Douglas Hoey, NCPA EVP and CEO. "By offering a variety of patient-friendly niches to complement the prescription drugs they dispense, independent community pharmacies continue to distinguish themselves from their competitors and win kudos from patients."
Half the states line up against ESI-Medco
If Express Scripts and Medco are right about the projected closing of what their opponents are calling the “mega-merger,” then we might be looking at dozens of more weeks of this.
(THE NEWS: NACDS urges consumers to prevent super-PBM ‘stranglehold’ on medicines. For the full story, click here)
DrugStoreNews.com users are far less optimistic than ESI and Medco executives, that’s for sure. As of Friday, 61% of users voting in the DSN online poll believed FTC regulators would kibosh the deal (1,446 votes), and each week since DSN began following the story in late July, that margin has widened considerably.
Certainly, the feathers continued to fly last week, beginning with the National Association of Chain Drug Stores’ newest ad campaign, which aims to derail the $29 billion deal that would give the new company more than 41% share of all prescriptions filled at retail, about 60% of mail order, and more than 50% of the specialty pharmacy market. The new print ad ran in the Oct. 4 edition of the Washington Post, and admonished readers not to “give Express Scripts and Medco a stranglehold on Americans’ medicines.”
Responding to DSN’s coverage of the story, ESI spokesman Brian Henry noted in a post on DrugStoreNews.com, “Express Scripts greatly values the relationships it has built over the past 25 years with pharmacies of every [type]. Pharmacies are our partners, and we have built business and network relationships that have [ensured] safe and effective service to our customers.”
According to Henry, ESI has “played an important role in helping retail pharmacies gain the benefits of modern technology,” he added, citing payment processing and instant adjudication systems as two examples.
But the NACDS ads were just the tip of the iceberg. Last Wednesday, Reuters surfaced with a report that more than half of the states in the country had “formed a group concerned about the potential merger of the two massive pharmacy benefit managers,” citing a representative from the Pennsylvania state attorney general’s office. Other than Connecticut and Iowa, no other states were identified in the report, however.
While the states do not get a vote either way, with more than 25 states lining up in opposition of the deal, as Reuters reported, it does create extra pressure for FTC regulators who will have to decide the fate of the merger.
On a somewhat related front, Walgreens announced on Friday that it had reached an agreement with ESI related to two large Medicare plans in Puerto Rico that will enable members of those plans to continue to access Walgreens for their medicines, even after the current Walgreens-ESI agreement expires at the end of the year. As previously reported, Walgreens announced in July that it would exit the ESI network, citing unacceptably low reimbursement rates. Collectively, the two plans, MMM Healthcare and its sister plan, PMC Medicare Choice, cover some 200,000 Medicare beneficiaries in Puerto Rico.