New Research Shows where all the Drug Supply Chain Money Really Goes

Big Pharma’s billion-dollar PR campaign has successfully painted PBMs as the money-hungry middlemen of America’s pharmaceutical supply chain.  

But the facts simply don’t back up the story Big Pharma is telling.

According to a new report from the Berkeley Research Group, only 6 percent of total prescription drug spending goes to health insurers and PBMs.  

94 percent goes to Big Pharma, pharmacists, 340B hospitals who profit on huge drug markups, and wholesalers.

The vast majority – 56 percent – goes to Big Pharma. That’s more than eight times what goes to PBMs and health insurers.

Pharmacists come in at 22 percent, or more than triple PBMs and health insurers.

340B hospitals and entities double PBMs and health insurers at 12 percent.

Big Pharma has done a good job making PBMs look like the bad guy in the drug supply chain.

But the numbers don’t match up.

Big Pharma, pharmacists, and 340B hospitals are making billions more off the supply chain than PBMs and insurers.