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Show Me the Money: Why Companies Overpay MCOs--and How They Can Stop

Executive Summary

To get on formularies, drug companies pay MCOs too much in rebates and get too little market share in return. But "fair share" analysis can help yield big revenue gains as well as giving drug companies the tools to make business-improving tradeoffs within their product portfolios. Key analyses and related interventions can help return to manufacturers some of the market power and negotiating leverage that is shifting from pharma companies to MCOs.

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