As Legalization Looms, AbbVie And Other Major Pharma Players Set Sights On Cannabis Market
A recent report from the U.S. Federal Trade Commission (FTC) has brought attention to the substantial influence of pharmacy benefit managers (PBMs) on drug pricing due to market consolidation. This situation raises important questions about the future of the cannabis industry, particularly in the context of potential federal legalization.
PBMs such as UnitedHealth Group’s Optum, CVS Health’s CVS Caremark, and Cigna’s Express Scripts play a crucial role in negotiating discounts, determining medication lists covered by insurance, and reimbursing pharmacies. According to the FTC’s interim report, these three PBMs manage nearly 79% of U.S. prescription drug claims, which gives them considerable power over drug prices and availability.
Potential Impacts on the Cannabis Industry
The consolidation trend observed in the pharmaceutical sector could offer a glimpse into the future of the cannabis industry. Roy Bingham, CEO of BDSA, forecasts the U.S. cannabis market to grow to $46 billion by 2028, driven by the expansion of adult-use markets …