International PBM Deals? South Africa First
Executive Summary
Recent international PBM deals.
PBM dealmaking is still basically a US-based affair, as the rather short list of international PBM deals make clear. But the overwhelming favorite PBM country outside of the US is South Africa, the most accessible market for businesses which make money by controlling drug costs. South Africa’s health care market is private, as advanced as many Western countries’, and is experiencing cost containment pressures similar to those in the US that have contributed to PBMs’ successes. These cost containment pressures include political heat, in the form of a proposed national health insurance system with an essential drug list, and encouragement (by the World Health Organization, among others) to provide better care for children and the underprivileged—which will mean increased drug spending and therefore a sharper eye on cost control.
Recent International PBM deals
Date Deal
11/95 SmithKline enters South African managed care market, buying Total Support Management (PBM & mail order pharmacy)
11/95 SmithKline and Drougerias Americana form an Argentinean PBM joint venture, Diversified Sistemas de Salud
5/95 Lilly & Glaxo form South African PBM JV, buying PBM & claims processor Medikredit
5/95 Lilly buys Canadian PBM and claims processor, RxPlus
2/95 Medco & Cider Sante form French PBM, Coordination Medical et Pharmaceutique
SOURCE:Windhover’s Health Care Strategist