Below is an article we published in March, 2010 and a response it solicited from one of our subscribers (published with his permission). We welcome feed back on all of our publications!
AWP CHANGES
On September 26th 2009, the Average Wholesale Price (AWP) for over 95% of brand medications changed. "The New England Carpenters vs. McKesson & First Data Bank" ruling required that effective September 26th 2009, the Average Wholesale Price (AWP) of 1442 specific National Drug Codes (NDC), be reduced from a Wholesale Acquisition Cost (WAC) mark up of 1.25% to 1.20%.
First DataBank & Medi-Span also announced a voluntary roll back of all brand medications that had an AWP markup greater than 1.20%. This voluntary AWP adjustment from First DataBank increased the effected number of NDCs to over 20,000.
Finally, AWP is expected to be replaced by WAC in 2011.
COMMENT: AWP is the basis for PBM payments to pharmacies. Consider changing contracts to WAC now to prepare for 2011. Payers and purchasers are not receiving compensation for the inflated AWPs that they have been paying on for years. Pharmacies, PBMs, Health Plans, etc., don’t want to be disadvantaged so they requested the previous prices be based on AWP = WACx1.25. If you wish to pay a more cost-based price, then consider contracts based on a cost of WACx1.2.
From: John Cronin
Sent: Thursday, March 11, 2010
To: Dr.Craig Stern
Subject: RE: Pharmacy Benefit News #127
Craig:
Couldn’t help but notice the comment in this newsletter that “Payers and purchasers are not receiving compensation for the inflated AWPs that they have been paying on for years.” As you are aware, PBM contracts with pharmacies were quickly adjusted over the years to compensate for the “inflated AWPs” with reimbursements falling from AWP -12% to AWP -17% on average. When the First Data Bank case was settled, many, but not all, PBMs re-adjusted their reimbursement rates to keep pharmacies whole – something that was necessary in order to maintain the pharmacy networks. The major payer who did not make that change in California is the Medi-Cal program, which has had two federal lawsuits challenging their (in)action.
Despite what the federal judge in Mass. has to say on the matter, the reality is that most PBMs were not paying pharmacies based on “inflated AWPs”; how the PBMs dealt with payers is a matter you know better than I. I’m not sure this distinction is clear from your comment and hope you’ll clarify it in a future newsletter.
Thanks
John A. Cronin, Pharm.D., J.D.
Wednesday, March 17, 2010
Wednesday, March 3, 2010
Questions and Answers for Healthcare Professionals: CRESTOR and the JUPITER Trial
The following information was released related to the JUPITER trial. The JUPITER study ostensibly demonstrated that the cholesterol lowering agent Crestor was effective in reducing the risk of stroke, heart attack, angioplasty, and revascularization. It will be interesting to see what the evidence-based reviews think of this study since there were a greater number of drop outs in the Crestor group, than in the placebo group, and the increased incidence of diabetes in the Crestor study group. It is unclear if the reduction is cardiovascular risk is a class effect for all statins, including the generic Simvastatin and Lovastatin; however, the increased diabetes was considered by the authors to be a class effect, so it would be difficult to argue that the reduction in cardiovascular risk is not a class effect. Time and additional scientific studies will tell.
Q1. What is FDA announcing today?
A. FDA is approving a new indication for the cholesterol lowering medication CRESTOR (rosuvastatin). CRESTOR will now be indicated for the primary prevention of cardiovascular disease to reduce the risk of stroke, heart attack, and the risk of arterial revascularization procedures (including coronary artery bypass graft, or bypass grafting of a peripheral artery or carotid artery, or angioplasty or stent placement) in individuals who have no clinically evident heart disease but are at an increased risk of heart disease due to the combined effect of the following risk factors:
* Age (> 50 years in men; > 60 years in women), and
* An elevated high-sensitivity C-reactive protein level (> 2 mg/L), and
* Presence of at least one additional cardiovascular risk factor (e.g., high blood pressure, low HDL-C, smoking, or a family history of premature heart disease).
CRESTOR is in a class of drugs called "statins." Statins work by stopping an enzyme called HMG-CoA reductase from making cholesterol. High cholesterol is a known risk factor for heart attacks and strokes.
Q2. How is this new indication different than CRESTOR's previous approved indication(s)?
A. CRESTOR already has an approved indication to lower cholesterol and triglycerides in combination with diet and exercise in patients with high cholesterol and/or triglycerides, and an indication to slow the progression of atherosclerosis. This is the first time CRESTOR has been approved for use in the prevention of heart disease in individuals with "normal" low-density lipoprotein (LDL) cholesterol levels and no clinically evident heart disease.
Q3. What information is today's approval based on?
A. The approval is based on results from a trial called the Justification for the Use of statins in Prevention: an Intervention Trial Evaluation Rosuvastatin (JUPITER). The trial compared the safety and the effectiveness of CRESTOR 20 mg versus placebo in the time to first occurrence of cardiovascular events (cardiovascular death, nonfatal heart attack, nonfatal stroke, hospitalization for unstable angina, and arterial revascularization). This trial included approximately 18,000 individuals with no clinically evident heart disease and low-density lipoprotein (LDL) cholesterol levels below 130 mg/dL. Table 1 below summarizes the eligibility criteria for individuals in the JUPITER trial.
Table 1. Eligibility criteria for the JUPITER trial
Characteristic Criteria
No clinically evident heart disease All patients
Increased age men > 50 years or women > 60 years
Elevation in high-sensitivity C-reactive Protein > 2 mg/L
LDL-C level <130> 2 mg/L.
* The JUPITER trial did not establish a particular goal of therapy for CRESTOR with respect to hsCRP levels.
Based on the limitations above, CRESTOR should only be used for the primary prevention of cardiovascular disease to reduce the risk of heart attack, stroke, or arterial revascularization procedures in individuals without clinically evident coronary heart disease who meet the following criteria:
* Men > 50 years old or women > 60 years old, and
* hsCRP > 2 mg/L, and
* Presence of at least one additional cardiovascular disease risk factor such as high blood pressure, low HDL-C, smoking, or a family history of premature coronary heart disease.
Q5. Did any safety concerns arise during the JUPITER trial?
A. The JUPITER trial confirmed the known safety profile of statins, including muscle-related adverse events and increases in liver transaminases. There were slightly more patients who discontinued CRESTOR compared to placebo due to adverse reactions; with myalgia (muscle pain) being the most common adverse reaction leading to discontinuation of CRESTOR.
An unexpected safety finding in the JUPITER trial was an increase in the number of individuals receiving CRESTOR compared to those receiving a placebo who developed diabetes. Previous meta-analyses have suggested that this is an effect of all statin drugs and is not unique to CRESTOR. It is important to note that an analysis of individuals in the JUPITER trial who had impaired fasting glucose at baseline did show a 34% reduction in major cardiovascular events with the use of CRESTOR.
Q1. What is FDA announcing today?
A. FDA is approving a new indication for the cholesterol lowering medication CRESTOR (rosuvastatin). CRESTOR will now be indicated for the primary prevention of cardiovascular disease to reduce the risk of stroke, heart attack, and the risk of arterial revascularization procedures (including coronary artery bypass graft, or bypass grafting of a peripheral artery or carotid artery, or angioplasty or stent placement) in individuals who have no clinically evident heart disease but are at an increased risk of heart disease due to the combined effect of the following risk factors:
* Age (> 50 years in men; > 60 years in women), and
* An elevated high-sensitivity C-reactive protein level (> 2 mg/L), and
* Presence of at least one additional cardiovascular risk factor (e.g., high blood pressure, low HDL-C, smoking, or a family history of premature heart disease).
CRESTOR is in a class of drugs called "statins." Statins work by stopping an enzyme called HMG-CoA reductase from making cholesterol. High cholesterol is a known risk factor for heart attacks and strokes.
Q2. How is this new indication different than CRESTOR's previous approved indication(s)?
A. CRESTOR already has an approved indication to lower cholesterol and triglycerides in combination with diet and exercise in patients with high cholesterol and/or triglycerides, and an indication to slow the progression of atherosclerosis. This is the first time CRESTOR has been approved for use in the prevention of heart disease in individuals with "normal" low-density lipoprotein (LDL) cholesterol levels and no clinically evident heart disease.
Q3. What information is today's approval based on?
A. The approval is based on results from a trial called the Justification for the Use of statins in Prevention: an Intervention Trial Evaluation Rosuvastatin (JUPITER). The trial compared the safety and the effectiveness of CRESTOR 20 mg versus placebo in the time to first occurrence of cardiovascular events (cardiovascular death, nonfatal heart attack, nonfatal stroke, hospitalization for unstable angina, and arterial revascularization). This trial included approximately 18,000 individuals with no clinically evident heart disease and low-density lipoprotein (LDL) cholesterol levels below 130 mg/dL. Table 1 below summarizes the eligibility criteria for individuals in the JUPITER trial.
Table 1. Eligibility criteria for the JUPITER trial
Characteristic Criteria
No clinically evident heart disease All patients
Increased age men > 50 years or women > 60 years
Elevation in high-sensitivity C-reactive Protein > 2 mg/L
LDL-C level <130> 2 mg/L.
* The JUPITER trial did not establish a particular goal of therapy for CRESTOR with respect to hsCRP levels.
Based on the limitations above, CRESTOR should only be used for the primary prevention of cardiovascular disease to reduce the risk of heart attack, stroke, or arterial revascularization procedures in individuals without clinically evident coronary heart disease who meet the following criteria:
* Men > 50 years old or women > 60 years old, and
* hsCRP > 2 mg/L, and
* Presence of at least one additional cardiovascular disease risk factor such as high blood pressure, low HDL-C, smoking, or a family history of premature coronary heart disease.
Q5. Did any safety concerns arise during the JUPITER trial?
A. The JUPITER trial confirmed the known safety profile of statins, including muscle-related adverse events and increases in liver transaminases. There were slightly more patients who discontinued CRESTOR compared to placebo due to adverse reactions; with myalgia (muscle pain) being the most common adverse reaction leading to discontinuation of CRESTOR.
An unexpected safety finding in the JUPITER trial was an increase in the number of individuals receiving CRESTOR compared to those receiving a placebo who developed diabetes. Previous meta-analyses have suggested that this is an effect of all statin drugs and is not unique to CRESTOR. It is important to note that an analysis of individuals in the JUPITER trial who had impaired fasting glucose at baseline did show a 34% reduction in major cardiovascular events with the use of CRESTOR.
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