UNH - Is Big Pharma Poised To Take Over Cannabis? 3 Companies Already Manage 8 In 10 Drug Prescriptions In The US | Benzinga
The U.S. Federal Trade Commission (FTC) recently highlighted the significant influence of pharmacy benefit managers (PBMs) on drug prices due to market consolidation. This trend raises critical questions about the future of the cannabis industry, especially if cannabis is federally legalized.
The Role Of PBMs And Market Influence
PBMs, such as UnitedHealth Group (NYSE: UNH)'s Optum, CVS Health (NYSE: CVS)'s CVS Caremark and Cigna (NYSE: CI)'s Express Scripts, negotiate discounts, create medication lists covered by insurance and reimburse pharmacies.
The FTC's interim report revealed that these three PBMs manage 79% of U.S. prescription drug claims, consolidating their power and impacting drug prices and accessibility.
Impact On Cannabis With Federal Legalization
The consolidation seen in the pharmaceutical industry provides a cautionary tale for the cannabis sector. Roy Bingham, CEO of BDSA, projects the U.S. cannabis market will reach $46 billion by 2028, driven by the expansion of adult-use markets and new regulated markets.
The rescheduling of cannabis to Schedule III is expected to open new avenues for medical research and investment, potentially leading to pharmaceutical ...