US health plans sue to end Big Pharma co-pay coupons

Large pharmaceutical companies are in the midst of a wave of patent expirations that is threatening their profitability. As drugmakers face numerous impending patent expirations, they are exploring new options to squeeze revenue out of expiring products, says pharma intelligence GlobalData.

In the USA, one of the most important tools in pharmaceutical companies’ arsenal is co-pay coupons, designed to let patients obtain branded drugs for generic prices. Unfortunately for these companies, a group of health plan providers has sued to force them to stop using co-pay coupons. These coupons are just one of many creative tools that companies are using in the face of generic challengers, notes GlabalData. Payers are hoping to put a limit, however, on what companies can get away with.

Usually, the co-pay for branded drugs, which is the out-of-pocket expense of prescriptions for consumers, is higher than for generic competitors. In order to keep customers from switching to generics, branded drugmakers issue these patients coupons covering the extra out-of-pocket cost of the branded version.