Biogen's innovative drug contracts are making a difference in Medicaid

As the healthcare industry continues to face financial strains brought on by the COVID-19 pandemic, the USA’s Medicaid programs need ways to reduce drug spend.  

Given this scenario, US biotech major Biogen (Nasdaq: BIIB) has teamed up with pharmacy benefit manager (PBM) Abarca to create the first outcomes-based contract to apply to Medicaid populations two years ago - and it is already providing critical relief to a program that receives one of the nation's lowest reimbursement rates.

Abarca, which is disrupting the industry with a new approach to technology and business practices released a new case study detailing a value-based agreement with Biogen for Avonex (interferon beta-1a) and Tecfidera (dimethyl fumarate), select products in the drugmaker's leading multiple sclerosis (MS) portfolio. Originally launched in 2017, this was the first publicly disclosed value-based agreement to serve Medicaid populations.

Alleviating financial strain for Medicaid clients