Generics boost profits for PBMs

08/18/2005 | Wall Street Journal, The

Generic drugs are proving to be a boon for pharmacy-benefit managers and their clients, with some PBMs reporting record profits due to the shift to generics, as well as mail orders and lowered purchasing costs. One company official noted generics are 30% to 60% less costly than branded drugs, so margins are better even though dispensing income is lower.

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