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Earlier this year, two of the country’s largest pharmacy chains, Walgreens Boots Alliance Inc. and CVS Health Corp. reduced 2019 earnings estimates, and each cited smaller profit from the sale of generic drugs, along with declining drug reimbursement rates as major reasons behind the downward forecasts. As reported by The Wall Street Journal, the pharmacies find themselves in a situation in which branded drug prices are on the increase, though at slower rates than in previous years, while prices for generic drugs have been falling for years. At the same time though, insurer reimbursement rates have fallen at a disproportionate rate, which has impacted the pharmacies’ bottom lines.

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