Zeneca's PBM Alternative

Zeneca, in tying up with Salick, won’t in the near term build up sales volumes of its cancer drugs. It’s hoping that Salick’s database will provide product-differentiating information for its pharmaceuticals and let it explore the service business, which, in a capitated system, could increase in profitability as pharmaceuticals shrink. And while Salick's facilities-based approach to cancer treatment means its system will be more difficult to expand than a facilities-independent cancer management system, it could also provide a template for disease management in other therapeutic areas.

Interviewed in London by The Wall Street Journalin August 1994, Zeneca Group CEO David Barnes was paraphrased as saying about pharmacy benefit management acquisitions by drug firms that “vertical integration has thus far failed to produce competitive advantage in any industry where it has been tried.”

How then to explain its acquisition of Salick Health Care Inc. (SHCI)? Not merely buying a pharmacy benefit manager,...

More from Business Strategy

Late-Stage GLP-1 Drug Trials Outside The Cardiometabolic Space

 
• By 

A look at Novo Nordisk, Eli Lilly and other companies' late-stage clinical studies of GLP-1 drugs in indications ranging from neurodegeneration to oncology, and alcoholic liver disease to autoimmune conditions.

Rising Leaders 2025: Metsera’s Whit Bernard’s Musical Path To Biotech Leadership

 
• By 

Metsera CEO Whit Bernard applies an unconventional leadership philosophy to develop next-generation obesity therapeutics, including monthly GLP-1 injections and oral peptides.

AI In Drug Discovery: The Patent Implications

 
• By 

A Q&A with DeAnn Smith, partner and co-chair of the Patent Trial and Appeal Board Proceedings Practice Group at law firm Foley Hoag.

Is Advanced AI Revolutionizing Sales Enablement In Pharma?

 
• By 

Advanced AI is revolutionizing sales enablement by addressing training gaps and performance challenges. Used correctly, it can help to bridge the sales-marketing divide, accelerate ramp-up times and provide managers with data-driven insights.

More from In Vivo

Rising Leaders 2025: Doxie Jordan, From UNC Graduate To Global Market Strategist

 
• By 

Bristol Myers Squibb executive Doxie Jordan discusses his path to global commercial leadership and the principles guiding pharmaceutical market strategy

Podcast: Brain+ CEO Discusses “Groundbreaking” Potential Of CST Assistant For Dementia Patients

 

Devika Wood, CEO of Brain+, explains the importance of developing health tech solutions for dementia and the growing need to both raise awareness and improve overall access to nondrug interventions like CST.

Behind The Buyout: Dispatches From The Dealmaking Table

 
• By 

In a challenging funding environment for biopharma, strategic dealmaking has become a critical growth engine. In Vivo explores what it truly takes to navigate high-stakes acquisitions and partnerships, drawing on insights from seasoned industry leaders.