Express Scripts Holding, the largest US pharmaceutical benefits management company, is providing coverage for the new migraine drugs made by Eli Lilly and Amgen, but is not doing the same for Ajovy, made by Israeli company Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA). Teva's share price responded by falling 2.5%.

Amgen was the first company to launch a CGRP-based drug for treating migraines. Teva launched its drug last month, followed immediately by Eli Lilly with its own drug.

"Reuters" reports that Express Script's indemnity reimbursement decision followed price discussions with all three companies. Companies like Express Script take aggressive measures to lower drug prices for their customers - large employers providing benefits for their employees.

A senior executive from Express Script was quoted by "Reuters" as saying that the three drugs were substitutable, and the decision was taken on the basis of the value obtained. The official price of the three drugs is $575 per month.

Teva obtained Ajovy when it acquired Labrys Biologics in 2014 and reported positive results in clinical trials for treatment of both chronic and acute migraines in 2017. Teva hoped to launch the drug in June, but the launch was put off until September due to faults discovered at the production site of South Korea company Celltrion, which manufactures the drug's active ingredient. When the drug was launched, analysts predicted that peak sales would reach $2 billion a year.

The US has an entire industry working to lower drug costs, called pharmaceutical benefit management (PBM). The leading companies in this industry, such as Express Scripts, the PBM units of the CVS Health pharmaceutical chain, and the United Health Group of hospitals, have made large profits in recent years by promising to low the increase in drug prices.

Published by Globes, Israel business news - en.globes.co.il - on October 17, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018