Replies to post #130934 on Biotech Values

[DewDiligence]

The sponsor gets a rebate for more than the cost savings from the generic, so they feel they win.

But what value did the PBM add in this transaction?

Inasmuch as PFE has made no secret of its maneuvers to retain market share for branded Lipitor (this was the #1 topic of discussion on PFE’s 3Q11 CC), couldn’t managed-care plans and large self-insured employers have gotten the same deal (or a better one) by negotiating directly with PFE if they had not been contractually bound to let a PBM handle the negotiations?