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You are here: Home / Government / Analysis Reinforces ’15 Study that Found Third of Drug’s List Price Goes Back to Supply Chain

Analysis Reinforces ’15 Study that Found Third of Drug’s List Price Goes Back to Supply Chain

A new analysis published in Health Affairs gives more armor to a 2015 Berkeley Research Group study that found more than one-third of a drug’s list price is rebated back to payers, the government, or held by key stakeholders in the supply chain, according to a PhRMA Catalyst report.

The analysis by Nancy Yu, Preston Atteberry and Peter Bach of the Memorial Sloan Kettering Cancer Center found that brand and generic biopharmaceutical companies retained about $323 billion (about two-thirds) of total drug spending.

According to the report, the remaining third was held by retail and specialty pharmacies to the tune of about $73 billion, and $35 billion by providers.

Pharmacy benefit managers and wholesales reportedly retained about $23 billion and $18 billion, respectively.

To read the full report, and to find out more about the 2015 BRG study, click here.



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