CVS to launch ICER-restricted formulary

CVS Health Corp. (NYSE:CVS) plans to offer a new formulary restricted to drugs deemed cost-effective by the Institute for Clinical and Economic Review (ICER). CVS believes the formulary will pressure manufacturers to moderate launch prices of drugs. It is one of three new strategies CVS's PBM business CVS Caremark is undertaking to reduce the cost of drugs.

The new program allows clients to exclude from their plan any drug with a launch price that exceeds a cost-effectiveness ratio of $100,000 per quality-adjusted life year (QALY) gained as determined by ICER...