Henry Schein's Bid to Move Up the Pharma Value Chain
Henry Schein, the dental and medical supplies distributor, is known for its strong relationship with physicians' offices, where it is a major supplier of med-surge products, equipment, pharma injectables and vaccines. Now it wants to fill in gaps that pharma companies aren't paying attention to--and in the process move up the value chain. It is expanding into specialty pharmacy, and seeking to strike deals with vaccine makers. It also has set up a small business development operation to look for in-licensing opportunities.
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Manufacturers in the past haven't paid much heed to health plans' half-hearted efforts to reign in biotech drug spending. They figure if the drug is good enough, payers have to cover it. But health plans are for the first time serious about managing specialty pharma spending. Manufacturers should take heed because the impact on their revenues and marketing strategies could be significant.
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