Protonix Average Price Increases By 8% As Wyeth Cuts Medicaid Contracts
This article was originally published in The Pink Sheet Daily
Focus on key managed care accounts and elimination of some state contracts has resulted in an 8% weighted average price increase compared to first quarter 2004. Protonix shows 10% total prescription growth, but posts flat sales due to 9% inventory workdown.
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Medicare Rx plans will mimic managed care contracting system rather than Medicaid's preferred drug list structure, North American President Mahady predicts. Wyeth ends some Medicaid contracts for Protonix after states ask for deeper discounts on proton pump inhibitor.
Normalization of Prevnar demand after the correction of supply problems will play a major role in delivering first quarter earnings per share levels significantly higher than analyst estimates, CFO Martin says. Third quarter results may be down compared to 2004 because of high anticipated R&D spending.
The rheumatoid arthritis agent and pneumococcal conjugate vaccine are less sensitive to pricing pressure, giving them better growth prospects, the company says. Wyeth expects to file six "major" NDAs in next two years as it looks to new products to off-set pricing pressure over the long term.