WASHINGTON, April 18 /PRNewswire-USNewswire/ -- The Pharmaceutical Care
Management Association (PCMA) issued the following statement today
regarding a story to be published in tomorrow's New York Times:

    "The New York Times has missed another opportunity to explain the real
reasons behind increased spending on biotech medications. In the April 14,
2008 piece, 'Co-payments Soar for Drugs with High Prices,' the Times blames
employers and plan sponsors for the high cost of biotech treatments. Then,
in a piece dated tomorrow, 'Paid to Control Costs, Yet Pushing Some Prices
Higher,' the Times blames high prices on those who dispense biotech
products and manage related care. Meanwhile, both articles strangely
downplay the role of those who actually set prices: the biotech
manufacturers. They also ignore the fact that spending has increased
because more patients have access to these life-saving medicines than ever
before.

    "Below are four fundamental issues the Times has either neglected or
ignored:

    -- First, the Times confuses those who price the biotech products
(biotech manufacturers) with those who dispense them (specialty
pharmacies). It's unfair to quote a source saying that benefit managers
'can raise prices at will' when manufacturers, not specialty pharmacies,
set the prices for these products.

    -- Second, the article virtually ignores that a key reason for high
biotech prices is a legal loophole that protects biotech manufacturers from
generic competition. Unlike traditional pharmaceuticals, there is no clear
regulatory pathway for the FDA to approve generic versions of biotech
products. For years, specialty pharmacies and pharmacy benefit managers
(PBMs) have been fighting for legislation to allow biogenerics and
competition to bring down biotech prices.

    -- Third, the Times fails to report that more patients now have greater
access to these products than ever before. That's good news, but it also
costs more. Nearly 60 percent of the increase in spending on specialty
biotech products last year was due to increased utilization, not price
increases.

    -- Fourth, the article distorts the role of limited distribution
networks, which only apply to less than 2 percent of biotech prescriptions,
specifically for treatments used by very small patient populations. These
small populations often require extremely specialized care, such as
infusions administered by highly trained nurses. This care prevents
side-effects, reduces product wastage, and monitors possible inappropriate
utilization.

    Traditional wholesaler and retail networks are simply not equipped to
provide this specialized and targeted care. To imply that limited
distribution networks are somehow the cause of higher prices is grossly
misleading.

    In fact, the FDA requires that certain drugs be limited to one pharmacy
due to special circumstances surrounding the medications."

    PCMA is the national association representing America's pharmacy
benefit managers (PBMs), which administer prescription drug plans for more
than 210 million Americans with health coverage provided through Fortune
500 employers, health insurance plans, labor unions, and Medicare Part D.

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