Florida talks to Pfizer, others, over drug plan

Negotiations have reportedly reached an advanced stage between Pfizerand the US state of Florida, under which the company's products would be listed on the prescription drug formulary to be set up under state legislative proposals, in return for Pfizer giving drugs free and setting up education and disease-monitoring programs for Medicaid recipients.

The legislation, which has been passed by the state legislature and awaits signing into law by Governor Jeb Bush, would require manufacturers to provide rebates and health services in order for their products to be included on the Medicaid formulary. Eligible patients would still be able to obtain non-formulary treatments, but only on prior authorization.

Medicaid officials said they have also been in talks on the plan with Bristol-Myers Squibb, GlaxoSmithKline, Johnson & Johnson, Eli Lilly and Merck & Co, but these were reportedly not as far advanced as those with Pfizer. Under the agreement, 23 Pfizer drugs would be placed on the formulary, after having undergone the same review process as for any other drug, in return for the firm establishing and running the programs in state hospitals for Medicaid patients with chronic conditions such as asthma, diabetes and congestive heart failure. Pfizer would guarantee savings as a result, and make payments if these savings were not met.