Revlimid. a derivative of thalidomide, is a 25-cent pill that sells for almost $1,000 in the United States. “Let’s go shopping Jimmy!” said the CFO to his health insurance broker.
And so he did……….
‘When Celgene launched Revlimid in December of 2005, it set the initial price at $55,000 a year, or $218 a pill, which was about double what analysts expected. Seven months later, when the FDA approved the drug for multiple myeloma, the price jumped to $70,560 a year, or $280 a pill.”
“The cost to manufacture each Revlimid pill, meanwhile, was 25 cents. I found a deposition marked “highly confidential” in which a top Celgene executive testified that the cost started at a quarter and never changed.”
United States Revlimid prices
Oral Capsule
2.5 mg – Revlimid oral capsule from $26,658.93 for 28 capsules
5 mg – Revlimid oral capsule from $26,658.93 for 28 capsules
10 mg – Revlimid oral capsule from $26,658.93 for 28 capsules
15 mg – Revlimid oral capsule from $19,996.71 for 21 capsules
20 mg – Revlimid oral capsule from $19,996.71 for 21 capsules
25 mg – Revlimid oral capsule from $19,996.71 for 21 capsules
Read Article HERE“
Jimmy goes to work. “Hey Boss, I think we can get the generic version for under $140 for a 30 day supply! Check this out………...”
“Lenalidomide is sold under the brand name Revlimid. We are an Indian government license approved pharmaceutical wholesaler and exporter of Hepatitis, Cancer, and HIV medicines. Lenalidomide Cost specializes in the distribution and supply of Lenalidomide, a crucial medication for treating various cancers and blood disorders. Our team comprises experienced professionals committed to delivering exceptional service and ensuring patient safety.”
Lenalidomide 5 mg Capsules – $65.00
Lenalidomide 10 mg Capsules – $90.00
Lenalidomide 15 mg Capsules – $110.00
Lenalidomide 25 mg Capsules – $140.00
“Lenalidomide Cost serves customers worldwide, ensuring that essential medication is accessible to patients across the globe. Our efficient logistics network enables us to deliver products promptly and securely to various countries, providing peace of mind to our customers.”
Sorry Jimmy, you can’t do this! Your PBM Agreement prohibits it! PBM Agreements typically include single source exclusivity in their contracts.
Why? Could it be because of rebates?
Typical rebate percentages account for 15% to 30% of a plan’s total gross drug spend. Rebates on brand-name drugs can range from 25% to 50% of the list price for certain high-rebate categories (e.g., insulin, specialty biologics). Specialty Drugs may have lower rebate percentages (often under 10%), but due to high costs, even small rebates can represent significant dollar amounts.
“But our client gets 100% of all rebates!” says Jimmy as he sips on his Kool-Aide…..
Then why is your client’s rebates averaging 12% when the industry averages are much higher than that?
NOTE: There is not a PBM on this planet that will disclose rebate amount collected for each prescription. By the time the rebate flows from manufacturer to (offshore) aggregator, from aggregator to PBM and finally from PBM to plan sponsor, a certain amount of “spoilage” occurs along the way.
