Biotech Values

[DewDiligence]

More on the ESRX/Sovaldi story (from today’s Washington Post):

http://www.washingtonpost.com/national/health-science/costly-hepatitis-drug-sovaldi-rattles-industry/2014/03/01/86cab0b4-a091-11e3-9ba6-800d1192d08b_story.html

Express Scripts, the nation’s largest prescription drug benefit manager, has said it is encouraging some doctors in its networks to delay prescribing Sovaldi for hepatitis C patients who can safely wait. It is the first time the company, which helps employers keep down the prescription drug costs for their employee health plans, has asked doctors to avoid a drug because of the cost.

The company hopes that when rival hepatitis C drugs hit the market, the increased competition will drive down costs.

Without saying so explicitly, ESRX is effectively trying to stifle US Sovaldi prescriptions for GT1 patients until the ABBV/ENTA regimen is launched.

Of course, the noise from ESRX (and other PBMs) might be posturing to induce GILD to set the price of the not-yet-approved Sovaldi + Ledipasvir combination at a small (or zero) premium to Sovaldi itself.