Lexology January 21, 2025
Executive Summary
The flow of dollars in the pharmaceutical marketplace within the US healthcare system involves a variety of stakeholders and myriad rebates, discounts, fees, and other payments. In recent years, a renewed focus on prescription medicine spending has triggered calls for greater visibility into distribution and payment processes. Against this backdrop, the market has experienced enhanced competition, resulting in higher rebates from pharmaceutical manufacturers to pharmacy benefit managers (PBMs) and payers.
The goal of this paper is to bring greater clarity to drug distribution and payment processes and estimate the share of total prescription medicine spending realized by pharmaceutical manufacturers and other stakeholders in the supply chain. We first look at total gross drug expenditures, defined as the sum...
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