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Genentech Sales Reps Face Hospital Bans Over a Wholesale Change

Discussion in 'Pharma/Biotech Companies - In the News' started by cafead, Oct 4, 2014 at 9:59 AM.

  1. cafead

    cafead Administrator
    Staff Member

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    This article was fed to our front page news late yesterday:

    Genentech Sales Reps Face Hospital Bans Over a Wholesale Change

    In a novel move, Ascension Health, which is one of the nation’s largest healthcare facility operators, has banned Genentech sales reps from calling on its nearly 2000 hospitals and clinics. Why? A move by the drug company to change the way it distributes 3 of its popular cancer meds, including limiting it to 5 specialty distributors, down from the 80 that distributed the drugs previously. According to this article, other hospital groups are considering a similar move.
     

  2. Anonymous

    Anonymous Guest

    Why? Because the move eliminates wholesaler discounts, which will cost hospitals millions.
     
  3. Anonymous

    Anonymous Guest

    wrong
    i am no Genentech fan but the product in question has a REMS and this greatly helps Genentech manage that and control costs. The IDNs are pissed because they can't make as much on the spread. The patient will be billed the same, it's just that the IDN can't gouge as much as they use to .
     
  4. Anonymous

    Anonymous Guest

    I guess that's one way of looking at. One man's gouge is another man's profit. The other side of this coin is 340B and the discounts IDNs are making. I bet that is part of impetus here as well. Genentech is willing to take the PR hit to gain back some control.