Aetna Members To Exclusively Use Specialty Pharmacy Joint Venture By October
This article was originally published in The Pink Sheet Daily
Executive Summary
The Aetna/Priority Healthcare joint venture’s Orlando, Fla. distribution center will begin servicing Aetna members in the first quarter. Aetna says it will switch all members who use specialty medicines from other distributors to Aetna Specialty Pharmacy by the end of the third quarter.
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Aetna members will receive specialty medications exclusively through Aetna Specialty Pharmacy by October, the Aetna/Priority Healthcare joint venture said March 1. "Aetna Specialty Pharmacy will ramp up production so that all Aetna members who receive specialty medications can be served by the new business by the third quarter of 2005," the companies stated. The joint venture opened its Orlando, Fla. distribution center on March 1. The center will be "Aetna's preferred provider for specialty pharmacy and biomedical distribution services." Although the center will begin distributing specialty pharmaceuticals in the first quarter, Aetna said it will switch its members who use specialty medications from other distributors to Aetna Specialty Pharmacy by the end of the third quarter. "The specialized medications from the joint venture are used for treating the chronically ill who suffer from conditions such as cancer, hemophilia, hepatitis, immune deficiency, infertility, multiple sclerosis and pulmonary diseases." Aetna Specialty Pharmacy initially will limit service to Aetna members. "In 2004, Aetna spent more than $1 bil. on specialty pharmaceuticals, and it is an area of pharmacy costs experiencing a national growth rate in excess of 20% per year," the companies said. If Aetna Specialty Pharmacy expands beyond its member base, it will likely face stiff competition from the expected merger of Medco's and Accredo's specialty pharmacies. Through its proposed acquisition of Accredo, Medco would become the largest specialty pharmacy distributor in the U.S., with combined sales of approximately $4.3 bil. in 2004 (1 (Also see "Medco Creates Largest U.S. Specialty Pharmacy Through Accredo Acquisition" - Pink Sheet, 23 Feb, 2005.)). The specialty pharmacy business could be one of two fronts on which Aetna will be competing with Medco. Aetna recently disclosed that it is seeking to market a national, standalone prescription drug plan to individual Medicare beneficiaries (2 (Also see "Aetna Seeks To Serve As National Rx Drug Plan Under Medicare Part D" - Pink Sheet, 23 Feb, 2005.)). Medco also has announced its intent to sponsor a PDP (3 (Also see "Caremark To Join Medco In Applying To Be National Medicare Rx Sponsor" - Pink Sheet, 16 Feb, 2005.)). Aetna and Priority Healthcare announced the formation of the joint venture in August 2004. Aetna Specialty Pharmacy is headed by Priority Healthcare Exec VP-Rebecca Shanahan. Aetna Specialty Pharmacy expects to have 250 full-time employees by the end of 2005, up from 50 pharmacists and clinical specialists with the joint venture as of March 1. - Adam Eckstein |