"merger and acquisitions" taped on a binder with graphs and glasses laying beside it

Each January millions of people renew their anticipation for the New Year with romantic ideals of new unions. Similarly, a large number of payers, providers and pharmaceutical manufacturers are searching for the most compatible mate, leading to a flurry of headlines and opportunities for each proposed merger and acquisition. If Pfizer and Allergen are able to withstand the winter winds of an early alliance, a key aspect to watch will be Pfizer’s significant gain of market access to consumers with coverage of Allergen’s core products.

DRG analysis finds that Allergan’s leading position in the Ophthalmics market will give Pfizer access to millions of Medicare patients. As a leader in ocular treatments, Allergen’s sales of the drug therapy top ~$3B and offer coverage to over 30.3M lives through formularies with national and regional carriers. United’s current coverage of Restasis, a leading optical drug, gives Pfizer a new playing field of 6.5 million members able to access the optical allergy relief through the AARP formulary. A deeper look at DRG’s formulary lives show that a gain of the Alphagan medicated drops alone will connect Pfizer to more than 6.7 million Medicare members, many of whom will be seeking treatment for glaucoma. These members will now become much more familiar with the Pfizer suite of products, which should help bolster consumer usage for Pfizer’s larger portfolio of solutions.

As a seasoned participant in mergers, Pfizer believes in the benefit of bringing in a new partner for financial gain and the accompanying market access. With the 1999 acquisition of Warner-Lambert, Pfizer paid upwards of $80B for a significant strengthening of its established cardiovascular therapy offerings, and therefore access to millions of covered patients. Similar to the current Allergan acquisition, Warner-Lambert also brought a set of early pipeline drugs to perpetuate Pfizer’s long-term success. The bolstering of the Research & Development arena will help open new doors for the behemoth company in the future, in addition to getting Allergen established market access on leading managed care formularies. According to DRG formulary data, Allergan’s Alphagen drops alone will give Pfizer access to Medicare patients covered by UnitedHealth Group, Aetna, and other insurers who place the drug on the preferred brand tier.

It is clear that this year’s largest proposed merger brings together a new family of connections and access. For Pfizer, making the most of Allergen’s coverage with national MCOs will bring in a new batch of consumers who are already familiar with Allergan’s coverage on their preferred carrier’s formulary. In terms of both market access and formulary coverage, Pfizer stands to continue its role as a goliath in even more therapy areas. For more coverage of market access mergers, formulary covered lives and managed markets data check out https://decisionresourcesgroup.com/solutions/us-managed-markets-solutions/drg-knows-lives/.

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