Ozempic Negotiations, Transcarent Acquires Accolade, List Prices Up/Net Prices Down

Hey all,

There was a lot of news yesterday. Especially interesting to me was DrugChannels update on the gross-to-net bubble in brand name pharmaceuticals, which disproportionately harms the patient in name of rebate dollars. Enjoy the rundown!

Jacob Brody (Co-Founder & CEO, ZorroRX)

(Stat News) Generic GLP-1 Drugs and Medicare Price Negotiations

The emergence of generic GLP-1 drugs, such as semaglutide, is poised to strengthen Medicare’s ability to negotiate lower prices for brand-name treatments like Ozempic and Wegovy. Medicare’s new drug price negotiation powers under the Inflation Reduction Act allow it to use the lower cost of generics as leverage during negotiations, potentially setting benchmark prices and increasing competition to reduce costs for beneficiaries. Even with lower prices, Medicare would still not cover GLP-1 medications when prescribed for obesity treatment without congressional approval, as weight loss drugs are excluded from Medicare coverage. Full Article.

(Fierce Healthcare) Transcarent’s Acquisition of Accolade

Transcarent, a healthcare navigation company, has announced it will acquire health benefits platform Accolade for approximately $621 million, representing a 110% premium over its publicly traded share price. This strategic move aims to integrate Transcarent’s AI-powered services with Accolade’s expertise in health advocacy and primary care, creating a unified platform to enhance consumer access to affordable healthcare. The acquisition is expected to close in the second quarter of 2025, after which Accolade will become a privately held company. Full Article

(Drug Channels) Pharmaceutical List Prices Up, Net Prices Down

In 2024, U.S. brand-name drug list prices increased by an average of 2.3% while rebates and discounts cut the selling prices of brand-name drugs from major pharmaceutical companies to less than half of their list prices. This was driven by price cuts of 50-70% on some widely prescribed drugs like insulin and asthma inhalers. High list prices harm consumers without coverage or high patient responsibility, as rebates often don’t reach the patient. Full Article