MS drug Rebif added to outcomes-based rebate program

EMD Serono Inc. signed an outcomes-based rebate contract with pharmacy benefit manager Prime Therapeutics LLC (St. Paul, Minn.) covering multiple sclerosis drug Rebif interferon beta-1a. Under the contract, EMD will pay rebates to Prime on the utilization of Rebif if patients have a higher overall total cost to their plans than patients on a different MS drug, or if the medication adherence rate remains above a specified level. According to Prime, rebates for high medication adherence rates are similar to volume discounts, where the manufacturer earns less profit per prescription, but recoups it in the additional volume sold. EMD is a subsidiary of Merck KGaA (Xetra:MRK). The contract took effect Jan. 1.

Prime launched the outcomes-based CareCentered Contracting program last year. The first two drugs under the program were osteoporosis drug Actonel risedronate from Warner Chilcott plc (NASDAQ:WCRX) and diabetes drug Januvia sitagliptin from Merck & Co. Inc. (NYSE:MRK). ...