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Generic Drug Price War Could Pay Off For PBMs

This article was originally published in The Pink Sheet Daily

Executive Summary

Pharmacy benefit managers earn higher profits on generics over brand products, Express Scripts CEO Toan says, and lower prices will lead to increased generic utilization. Caremark has gotten “some pickup” from the pricing competition, CEO Crawford says.

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Express Scripts Anticipates Growth In 2005 From Zithromax, Zofran Generics

PBM cites anticipated contribution to growth from several first-time generics that could enter the market in 2005. Nevertheless, Express Scripts concedes that generic utilization growth will be weaker in 2005 than in other years. Subsidiary CuraScript will aid PBM's growth by converting clients that use an outside specialty pharmacy provider.

Express Scripts Anticipates Growth In 2005 From Zithromax, Zofran Generics

PBM cites anticipated contribution to growth from several first-time generics that could enter the market in 2005. Nevertheless, Express Scripts concedes that generic utilization growth will be weaker in 2005 than in other years. Subsidiary CuraScript will aid PBM's growth by converting clients that use an outside specialty pharmacy provider.

CVS’ Margins Get Boost From Increased Generic Drug Use

Increased generic drug use in the third quarter aided CVS' margins, the retailer said

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