NCPA outlines need for legislation protecting community pharmacy in Pennsylvania
ALEXANDRIA, Va. — The National Community Pharmacists Association on Thursday announced the need for legislation in Pennsylvania to protect independent pharmacy operators there.
“Across the Keystone State 1,005 independent community pharmacies serve patients, employ 10,040 people and contribute greatly to local and state tax revenue,” stated Douglas Hoey, NCPA CEO. “The viability of these small businesses is being undermined by the practices of billion-dollar companies known as pharmacy benefit managers, hired by most health plans to administer prescription drug benefits. For Pennsylvanians, their communities and the future of these pharmacies, we encourage lawmakers to swiftly enact common-sense reforms to achieve a more balanced business relationship between PBMs and community pharmacies.”
Hoey singled out three trends that are particularly in need of legislation and further oversight:
- First, in order to care for Pennsylvania patients covered by a given health plan, community pharmacists must sign take-it-or-leave-it contracts from Fortune 500 PBMs, Hoey noted. These contracts give the PBMs full authority to determine how they will reimburse pharmacies, especially for generic drugs, which account for nearly 80% of drugs dispensed. Thus, these small business providers are “flying blind” in terms of taking into account the operating costs of their prescription drug inventory;
- Second, a pharmacy’s acquisition cost for scores of generic drugs are skyrocketing by as much as 600%, 1,000% or more, but the PBMs continue to reimburse community pharmacies at an outdated, lower price. Pharmacists report repeatedly being faced with loses of $40, $60, $100 or more per prescription as the PBM waits several months before updating its reimbursement rates; and
- Third, by reimbursing pharmacies at low rates and charging health plans at much higher rates — a practice known as “spread pricing” — the PBMs generate profits while propping up insurance costs for employers, government agencies and consumers. Legislation increasing transparency into pharmacy benefit management could reduce the cost of PBM spread pricing, Hoey said.
NCPA is working on these issues in conjunction with the Pennsylvania Pharmacists Association, Value Drug Company, the Philadelphia Association of Retail Druggists and the Keystone Pharmacy Purchasing Alliance.
Senderra Rx hires Stephen Lund
FLINT, Mich. — Specialty pharmacy Senderra Rx has hired a former executive at Diplomat, Rite Aid and Perry Drug Store as its EVP strategic initiatives.
The Richardson, Texas-based company announced Thursday the hiring of Stephen Lund, who immediately before worked as a specialty pharmacy industry consultant.
"Steve brings a lifelong pharmacy career to Sendera Rx, with a strong expertise in specialty pharmacy," Senderra Rx chairman Win Purifoy said. "We are excited to have him on our team and help us fuel our future growth in this dynamic specialty pharmacy market."
The company also hired Kathy Lenzi as director of patient services. Lenzi previously worked as manager of contract management at Diplomat.
Endo bid for Canadian drug maker clears regulatory hurdle
MALVERN, Pa. — Endo announced Thursday that regulatory waiting periods in the United States and Canada related to its plans to acquire a Montreal-based drug maker have been terminated.
Endo said that the waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act and a similar period required under the Canadian Competition Act had been terminated, allowing it to move ahead with its purchase of Paladin Labs. The plan remains subject to additional regulatory and other conditions, including approval by the companies’ shareholders and an approval by the Superior Court of Quebec.
Endo said last month it would acquire Paladin Labs for $1.6 billion. Paladin specializes in treatments for attention deficity hyperactivity disorder, urology and other indications. The company will continue to operate under its present name after the acquisition is complete.