PBM Harmonization

CASE STUDY

A global conglomerate with diverse businesses including cosmetics, media and military equipment realized $16.6M in annual synergies by harmonizing pharmacy benefits.

DEAL SNAPSHOT

  • Client Type: Family Holding Company
  • Employees: ~20,000 at start of deal
  • Baseline Rx Cost: $160M 2020-2022
  • Projected Savings: $11.2M/year 2020-2022
  • Actual savings: $16.6M/year 2020-2022
  • Additional Projected Savings 2023-2025:
  • 6.9% (year 1) • 14.0% (year 2) • 20.3% (year 3)

CURRENT

Diversified holding company client with 5 portcos seeks to leverage the aggregated PBM spend across the portfolio to create value through harmonization

ACTION

Client engaged Optimatum To:

  • Perform a forensic analysis of the current pharmacy benefits and vendors.
  • Manage a PBM consulting firm to conducted an RFP for a unified PBM vendor.
  • Evaluate RFP responses based on plan design, financial offerings, disruption analysis and stakeholder feedback
  • Partner with key stakeholders to ensure an efficient implementation and successful Day-One .

OUTCOME

$50M Rx savings initial 3 years of the program, additional $12M for second 3 years