Market Reaction to Hospitals Forming a New Drug CompanyClick Here To Download Report
Prescription drug prices are rising at an alarming rate. In 2016, total drug costs went up about three times the rate for other goods and services, according to the U.S. Department of Labor. About 20 percent of generics have had price hikes of at least 100 percent between 2013 and 2017, according to analysis by the Drug Channels Institute. And, as recently reported by CBS news magazine 60 Minutes, a drug used to treat infantile spasms that in 2001 cost $40 a vial, now costs $40,000.
Earlier this year, plans for the most disruptive venture within the healthcare industry in the last decade was announced: a collaborative not-for-profit generic drug company called Project RX which consists of four health systems; Ascension, Intermountain Healthcare, SSM Health, and Trinity Health, in consultation with the US Department of Veterans Affairs was formed.
Even with less than stellar familiarity on this, we had over 700+ key decision-makers at hospitals, payer organizations, and pharmaceutical companies engage with us.
How supportive is the market in general. Is there a different level of support among each of the respective industries that participated?
What matters most for any business is whether or not the customers come. So far things look good for Project RX with 90% of providers indicating they would become a customer, but only time will tell.