SOURCE: Pharmaceutical Strategies Group

February 12, 2007 08:00 ET

PSG Saves Employers and Health Plans Over $500 Million in Drug Spend in 2006, Realizes Significant Growth

Pharmacy Benefits Consultancy Also Added Industry-Leading Coalition for Small/Mid-Sized Employers

DALLAS, TX -- (MARKET WIRE) -- February 12, 2007 --Dallas-based Pharmaceutical Strategies Group (PSG), the largest independent pharmacy benefits consultancy in the U.S, reports saving its employer and health plan clients over $500 million in 2006. These savings were generated through more than 50 highly-competitive procurement engagements on behalf of PSG's impressive client roster, which includes Fortune 50 employers, Blue Cross and Blue Shield plans, large government purchasers, regional managed care organizations (MCOs) and one of the nation's largest international unions. In 2006, when the cost of pharmacy benefits was soaring, the average reduction in PSG's clients' program costs was 11 percent.

"Our significant growth and cost savings achieved for our clients in 2006 is a testament to PSG's in-depth knowledge and expertise of the pharmaceutical industry and trends, pharmacy benefit management (PBM) capabilities and internal processes that enables us to help our clients streamline their procurement and utilization management strategies," explains Tim Watson, Pharm.D., M.B.A. and principal of PSG. "Our goal in 2007 is to continue to assist our clients in formulating pharmacy benefit strategies that will result in long-term program savings as well as improved health outcomes. The marketplace response to our product and service offerings has continued to escalate, and we expect at least 20 percent additional growth in 2007."

The soaring cost of pharmacy benefits has encouraged employers and other plan sponsors to seek PSG's customized, objective analysis, program design and management services to implement pharmacy benefits programs that meet their operational, financial and employees' needs. Areas addressed include:

--  Environmental analysis & plan design
--  Utilization strategies
--  Plan performance and benchmarking
--  Vendor procurement and contracting
--  Management of implementation process
--  PBM vendor management
--  Clinical program support
--  Data warehousing and analytics
--  Contract compliance support
    
In 2006, PSG also created an industry-leading national purchasing coalition for middle-market employers, which focuses on a full transparency/pass-though model in pharmaceutical benefits management. Through this coalition, PSG has been able to deliver significant cost savings for enrollees, ranging from 8-25 percent, achieved through a very competitive PBM agreement, adoption of targeted clinical programs, and minimizing waste.

According to Dave Borden, Principal of PSG, "This coalition allows medium-sized employers to take advantage of the purchasing leverage and economies of scale typically available to the largest purchasers, without sacrificing flexibility in key areas of importance to plan sponsors such as plan design and choosing from a myriad of program management options. The immediate benefits to coalition members fueled significant growth during 2006 with over 40 employers now enrolled in the coalition, with others in various stages of implementation. Based on the initial market response, and the number of purchasers that have already committed or expressed interest in enrolling in the coalition in the next few months, we expect the enrollment to more than double in 2007."

In its continuing effort to build the broadest and deepest talent in pharmacy benefits consulting, PSG welcomed six highly qualified professionals with decades of PBM experience to its corporate staff in 2006.

About Pharmaceutical Strategies Group

The Pharmaceutical Strategies Group, based in Dallas, Texas, assists plan sponsors in designing, implementing and managing programs that will maximize the value of pharmaceuticals in their population. PSG serves over 200 clients, including leading employers, health plans, unions and public sector entities. The strategies employed by PSG consultants allow plan sponsors to gain immediate control over their pharmacy benefit spend, while positioning their program to successfully negotiate pharmacy benefit challenges of the future. For more information, visit www.psgconsults.com.

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