Merck & Co signs performance-based contract with CIGNA

US health insurer CIGNA has reached an agreement with drug major Merck & Co that it says is unique in the industry. The agreement will benefit  CIGNA customers through increased discounts on Merck's oral  anti-diabetes medications Januvia (sitagliptin) and Janumet  (sitagliptide/metformin HCl), which together generated global sales for  the durg firm of $539.0 million in the first quarter of this year  (Marketletter April 27). These drugs are used in conjunction with diet  and exercise to improve glycemic (blood sugar) control in adults with  type 2 diabetes, a condition that has reached epidemic proportions in  the USA.

"Merck should be recognized as the first major pharmaceutical company  to offer increased discounts on its oral antidiabetic products,  supporting CIGNA's efforts to reduce A1C levels for individuals with  diabetes, regardless of what medication they may be taking," said Eric  Elliott, president of CIGNA Pharmacy Management.

CIGNA will review available A1C lab values for people taking any oral  antidiabetic medications and, if at the end of the year these have  improved, the discounts Merck offers on Januvia and Janumet will  increase. In an effort to help improve medication adherence, CIGNA will  also review claims data for individuals with the firm's pharmacy  benefits who are on the two drugs during that same time period to  determine if these individuals are taking the medications as prescribed  by their physicians. If they are, Merck will increase the discounts it  offers CIGNA on these medications even more. These savings can be shared  in various ways with CIGNA's customers.