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Magellan (MGLN) Unit Generates Cost Savings With Biosimilars
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Magellan Health, Inc.’s unit Magellan Rx Management recently informed that five of its health plan members, who were among the earliest embracers of its oncology biosimilar medical pharmacy solution, benefited with annualized savings worth more than $40 million.
Notably, the solution, which was launched back in 2019, is part of Magellan Rx’s medical pharmacy program inclined toward biosimilar management. The program aims to offer high-quality care to its members and generate cost savings while undergoing oncology drug expenditures. Members, who put the program into effect on or prior to January 1 of 2020, benefited from usage of the biosimilar solution.
The abovementioned program basically intends to encourage usage of three cost-effective oncology therapeutic biosimilars as substitutes for expensive reference products. It has to be noted that majority of the $40 million annualized savings has stemmed from the first two products, which held biosimilar availability. Further, initial results achieved with the third product have highlighted the product’s prospects.
Magellan Rx has made utmost use of its diversified clinical expertise and experience to roll out enhanced and affordable biosimilar-first solutions from early 2016. These solutions are of immense use to payers as well. Per the internal data of Magellan Rx, they have to pay up to 40% less for biosimilars when compared with their respective reference brands.
Going forward, such savings are anticipated to increase further owing to uptick in number of customers joining Magellan Rx’s medical pharmacy program. These management programs are likely to give the company an edge in the U.S. biosimilar market, which holds immense growth potential.
Per Fortune Business Insights, the affordable nature is one of the primary factors propelling the U.S. biosimilar market growth. This has led to reduction in expenses related to market access, marketing and post-marketing R&D. Hence, biosimilars can be made easily available to people and the approval process for the same is comparatively seamless than branded original biologics. The research firm further estimates the U.S. biosimilar market to witness a CAGR of 46.2% over the 2020-2027 period.
Moreover, cancer has been a leading cause of fatality globally and is accompanied with high treatment costs. Hence, there is a dire need of reducing cancer treatment costs and as a result, several U.S. healthcare providers have been undertaking measures to address critical needs of cancer patients.
In May 2021, UnitedHealth Group Incorporated’s (UNH - Free Report) subsidiary Optum, through its division USMD, unveiled opening of three cancer care and infusion centers to offer enhanced and cost-effective cancer treatment across Texas. Other healthcare providers offering cancer treatment to Americans include Centene Corporation (CNC - Free Report) and Humana Inc. (HUM - Free Report) .
Besides, Magellan continues to benefit from its robust behavioral health, specialty health and pharmacy businesses, which has enabled it to expand existing capabilities.
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Magellan (MGLN) Unit Generates Cost Savings With Biosimilars
Magellan Health, Inc.’s unit Magellan Rx Management recently informed that five of its health plan members, who were among the earliest embracers of its oncology biosimilar medical pharmacy solution, benefited with annualized savings worth more than $40 million.
Notably, the solution, which was launched back in 2019, is part of Magellan Rx’s medical pharmacy program inclined toward biosimilar management. The program aims to offer high-quality care to its members and generate cost savings while undergoing oncology drug expenditures. Members, who put the program into effect on or prior to January 1 of 2020, benefited from usage of the biosimilar solution.
The abovementioned program basically intends to encourage usage of three cost-effective oncology therapeutic biosimilars as substitutes for expensive reference products. It has to be noted that majority of the $40 million annualized savings has stemmed from the first two products, which held biosimilar availability. Further, initial results achieved with the third product have highlighted the product’s prospects.
Magellan Rx has made utmost use of its diversified clinical expertise and experience to roll out enhanced and affordable biosimilar-first solutions from early 2016. These solutions are of immense use to payers as well. Per the internal data of Magellan Rx, they have to pay up to 40% less for biosimilars when compared with their respective reference brands.
Going forward, such savings are anticipated to increase further owing to uptick in number of customers joining Magellan Rx’s medical pharmacy program. These management programs are likely to give the company an edge in the U.S. biosimilar market, which holds immense growth potential.
Per Fortune Business Insights, the affordable nature is one of the primary factors propelling the U.S. biosimilar market growth. This has led to reduction in expenses related to market access, marketing and post-marketing R&D. Hence, biosimilars can be made easily available to people and the approval process for the same is comparatively seamless than branded original biologics. The research firm further estimates the U.S. biosimilar market to witness a CAGR of 46.2% over the 2020-2027 period.
Moreover, cancer has been a leading cause of fatality globally and is accompanied with high treatment costs. Hence, there is a dire need of reducing cancer treatment costs and as a result, several U.S. healthcare providers have been undertaking measures to address critical needs of cancer patients.
In May 2021, UnitedHealth Group Incorporated’s (UNH - Free Report) subsidiary Optum, through its division USMD, unveiled opening of three cancer care and infusion centers to offer enhanced and cost-effective cancer treatment across Texas. Other healthcare providers offering cancer treatment to Americans include Centene Corporation (CNC - Free Report) and Humana Inc. (HUM - Free Report) .
Besides, Magellan continues to benefit from its robust behavioral health, specialty health and pharmacy businesses, which has enabled it to expand existing capabilities.
Zacks Rank & Price Performance
Shares of this Zacks Rank #1 (Strong Buy) healthcare provider have gained 29.7% in a year compared with the industry’s rally of 27.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>