Managed care favors Novartis

The two pharmaceutical companies that merged to become Novartis - Sandoz and Ciba - topped managed care executives' list of "best" drug firms, according to a fall 1996 audit of managed care pharmacy executives.

Scott-Levin, Newtown, PA, asked executives from health maintenance organizations and pharmacy benefit managers how they would rate drug companies in terms of contracts, value-added services, knowledgeable sales reps and overall best service during an eight-week period last fall. The survey respondents represented 77% of lives covered by managed care in the United States.

"Both Sandoz and Ciba are extremely respected by managed care organizations and continue to be role models for pharmaceutical firms that want to improve their relationships with managed care," said Joy Scott, CEO of Scott-Levin.

Two new entries in the top 10 are Bayer Corp. and Boehringer Mannheim. Bayer's experience makes it a good case study of how managed care marketing works, Scott said. Bayer made the list partly because managed care executives are impressed with the company's pull-through program for the calcium channel blocker Adalat CC, which offers savings if the managed care organizations increase Adalat CC's market share.

Managed care decision-makers are responding by increasing Adalat CC's formulary presence at the expense of Pfizer's Procardia XL, according to Scott-Levin. Pfizer has countered Bayer's initiative by attempting to convince pharmacy executives to use its own new product, Norvasc, over Procardia XL.

Boehringer Mannheim made the top 10 list because its value-added servicesfor its diabetes product line are a big hit with managed care, according to Scott-Levin. PR