IMS’ Long: State of Rx market
LAS VEGAS — This year, generic drugs account for 83% of all drugs dispensed in the United States, and that figure is set to get even larger over the next few years. That was among the takeaways from IMS Health VP industry relations Doug Long’s presentation Sunday morning.
Over the next few years, Long said, generics would likely grow to 86% to 87% of prescriptions, at which point they would plateau. A factor behind this is Crestor (rosuvastatin), the cholesterol drug made by AstraZeneca. With 2012 sales of $5.1 billion, Crestor is the third top-selling drug in the United States, according to IMS. But after it comes off patent in 2016, there won’t be any other significant primary-care drugs coming off patent.
This, Long said, means generics companies will have to focus more on biologics. The market for specialty drugs — most of which are biologics — is likely to grow and account for about 30% of the market in the next few years. Indeed, specialty is already dominant in the development of new medications.
One area where retailers have a good opportunity is in reducing healthcare costs. Of the $213 billion in avoidable healthcare costs per year, $140 billion of that comes from patients visiting hospitals, and another $6 billion comes from emergency room visits.
“I think with your retail clinics, you can partner a lot and help reduce that,” Long said, adding that even medication synchronization can help improve medication adherence.
Reducing hospital readmissions is another area of potential cost containment, a contributing factor of which is nonadherence. Among nonadherent patients, those with cholesterol represent the highest cost, at $44 billion. The others are osteoporosis, diabetes, HIV, hypertension, hypercholesterolemia and congestive heart failure. “These six disease states are all in your sweet spot,” Long said. “These are not specialty classes — these are all
Wiesner receives Pratt Award
During Sunday morning’s Business Program, the National Association of Chain Drug Stores bestowed its highest honor — the Harold W. Pratt Award — to Dennis Wiesner. Wiesner currently serves as senior director for privacy, pharmacy and governmental affairs with H-E-B, which he joined in 1987. In addition to his role as past-chair and current member of the NACDS Policy Council, he has and continues to serve in several professional organizations.
What is your 20-mile march? That was one question that author and business consultant Jim Collins had for attendees during Sunday morning’s Business Program.
Collins, who has authored or co-authored six books, is a student and teacher of enduring great companies — how they grow, how they attain superior performance and how good companies can become great companies.
“Good is the enemy of great. I’ve dedicated a quarter of a century of my life to the pursuit of one basic question: What makes a great company tick, and what marks the people who lead them?” Collins said.
During his presentation, Collins highlighted the character traits of a “level 5” leader and also outlined 12 questions that companies can ask themselves. Such questions include: What core values will clock-build our culture? Do we have the right people on the bus? And what is your 20-mile march?
For the complete list of questions, visit JimCollins.com/tools.html.