Imprimis Signs Agreement With One Of Nation's Largest Pharmacy Benefit Managers; CEO Talks Disruption

Pharmaceutical compounder Imprimis Pharmaceuticals Inc IMMY first stepped onto the national stage in December 2015, when the company announced its partnership with Express Scripts Holding Company ESRX to distribute a $1 Daraprim alternative following Martin Shkreli and Turing Pharmaceuticals’ infamous price hike. Since then, CEO Mark Baum has continued to both speak and act out against price hikes in the pharmaceutical industry.

According to Baum, with their current business model, Imprimis will be able to accomplish three things simultaneously: provide access to patients, drive down cost and create profits for shareholders.

PBM Agreement

On November 10, Imprimis announced it had signed an agreement with the specialty pharma division of one of the nation's largest pharmacy benefit managers (PBMs). With the recent agreement, according to Baum, the PBM will be offering the Imprimis Cares® formulary to their entire network of 65 million covered individuals.

“It's a significant institution, it’s an important institution, it's a very innovative institution and we’re really happy to be working with them, and we think it’s going to drive a lot of value for our shareholders ultimately,” said Baum.

Policy Makers, Researchers And Insurers Take Note

Policy makers and healthcare policy research institutions are taking note, according to Baum, who admits that their business model was met with initial skepticism of its efficacy, safety and potential impact.

“Insurance companies and PBMs,” said Baum, “large institutional customers are interested in this model because they’re the ones that have to deal with these massive price increases.”

According to Baum, Imprimis has been working with these other firms to develop a portfolio of products insurance companies, patients and physicians want.

Baum Talks Disruption

While Imprimis’ business model breaks the mold and counteracts big pharma, according to Baum, recent years have seen similar disruption in other areas, specifically in the U.S. presidential race and in company’s like Dollar Shave Club, which sold to Unilever plc (ADR) UL for $1 billion this summer.

“We’ve talked publicly about our program for an epi-pen alternative after one of Mylan NV MYL’s product has seen dramatic price increases,” explained Baum. “Our approach to product development for that market was really inspired by dollar shave club. I happen to be a member of dollar shave club.”

Donald Trump And Broad Implications

What Donald Trump demonstrated, according to Baum, is that rethinking a political campaign can have broad sweeping impacts.

“This guy didn’t have any of the resources that the Clinton campaign had, but yet he managed to pull of a victory, without going into whether that’s a good thing or a bad thing, he demonstrated that. He was able to develop a completely disruptive way to run a political campaign.”

This disruptive way of approaching issues, according to Baum, is occurring in industries across the spectrum and having immense impacts.

“If you think about what Donald Trump achieved,” explained Baum, “he achieved winning an election. If you think about what dollar shave club did when they rethought this 100-year-old industry, they ended up selling out for a fortune. They created a tremendous amount of value. I like to think we’re approaching drug development and innovation in the pharmaceutical space in the same light."