[Ip-health] ​Bloomberg: CVS Will Exclude Xtandi From Formulary in 2017​

Zack Struver zack.struver at keionline.org
Tue Aug 2 13:25:41 PDT 2016


http://keionline.org/node/2620

​Bloomberg: CVS Will Exclude Xtandi From Formulary in 2017​

​Submitted by Zack Struver on 2. August 2016 - 16:07​

​Bloomberg reported on August 2, 2016, that CVS Health announced that it
plans to exclude 35 drugs from its formulary
<http://www.bloomberg.com/news/articles/2016-08-02/cvs-plans-to-bar-novartis-cancer-drug-from-2017-covered-drugs>
 beginning in 2017, including Xtandi, bringing the total number of excluded
drugs to 131.

CVS will continue to reimburse Zytiga (abiraterone), a drug for prostate
cancer that is marketed by Janssen. AS KEI noted, one study found that Xtandi
would be more cost-effective than Zytiga <http://keionline.org/node/2473> if
the price was decreased by at least 26%.

CVS operates various prescription drug services, including Caremark, one of
the largest U.S. pharmacy benefit managers, as well as the largest Medicare
Part D insurer, SilverScript <https://www.silverscript.com/about-us.aspx>,
which covers over 5 million Medicare patients. CVS reported that its
pharmacy services businesses earned $28.8 billion in net revenue
<http://hsprod.investis.com/shared/v2/irwizard/sec_item_new.jsp?epic=cvs_caremark&ipage=10911067&DSEQ=&SEQ=&SQDESC=>
in
the first quarter of 2016
This exclusion marks the first time that CVS has removed a brand-name
cancer medicine from its formulary. According to a press release
<http://investors.cvshealth.com/~/media/Files/C/CVS-IR-v3/documents/02-aug-2016/2017-standard-formulary-list-of-removals-and-updates.pdf>,
CVS plans to remove the 35 drugs from its formulary to “help reduce costs
for clients and plan members.” CVS also explained that 10 of the drugs to
have their coverage revoked are “hyperinflationary drugs,” defined as
“products with egregious cost inflation that have readily-available,
clinically-appropriate and more cost-effective alternatives.”​

-- 
Zack Struver, Communications and Research Associate
Knowledge Ecology International
zack.struver at keionline.org
Twitter: @zstruver <https://twitter.com/zstruver>
Office: +1 (202) 332-2670 Cell: +1 (914) 582-1428
keionline.org



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