What's new
You may have seen that the Federal Trade Commission (FTC) published a second interim staff report on the prescription drug industry Tuesday afternoon, which focuses on pharmacy benefit managers’ (PBMs) influence over specialty generic drugs. This is a follow up to the FTC’s first interim report, issued in July 2024, scrutinizing the practices of PBMs across the industry. 

While there was no specific mention of Prime Therapeutics (Prime), the FTC's second interim report addresses the pricing practices of the three largest PBMs — Caremark Rx (CVS), Express Scripts and OptumRx — as it relates to their affiliated and vertically integrated specialty pharmacies.  

What it means to Prime and you as a client
As noted, Prime was not included in the report. Further, the practices referenced in this report do not align with Prime’s model, which is markedly different from other PBMs and is unique in the market. We strive to reimagine pharmacy solutions to deliver value back to those we serve. This guiding principle drives the work we do and how we serve clients and members. Some key areas of distinction include: 

• Conflict free: Distinctive from others in our industry, we do not steer clients to our owned assets. Additionally, we are not incentivized to direct members to fill prescriptions with contracted pharmacies.
  
  We believe in optionality for our clients and members and are supportive of client choices relative to specialty pharmacies. We work with many pharmacies through numerous distribution channels to help those we serve choose the best path for their needs. We offer specialty pharmacy services tailored to the specific needs of clients and members that focus on service and ease of use. We continue to innovate, enhancing optionality and member experience for all clients.
   
• Purpose beyond profits: As a privately held company owned by mission-driven partners, we’re focused on creating transformative impact with the best long-term solutions. We continue to evolve specialty drug solutions to drive savings and improve patient care. 

We believe the current public discourse on the PBM industry does not align with our vision at Prime to transform pharmacy benefits and enhance our service to clients and members. Despite this, we see a valuable opportunity to set a new industry standard by leveraging our strong foundation, adapting to market changes and reimagining the way pharmacy services are provided.  

Next steps/Questions
We anticipate ongoing conversations pertaining to this topic in the news. We will continue to keep you informed and will share additional updates.

For questions, please contact your account team representative or ClientCommunications@PrimeTherapeutics.com.