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ARTICLE | Company News

Horizon falls on Duexis, Vimovo coverage concerns

July 29, 2014 12:26 AM UTC

Horizon Pharma Inc. (NASDAQ:HZNP) dropped $4.69 (34%) to $9.20 on Monday after disclosing that pharmacy benefit managers CVS Caremark Corp. (NYSE:CVS) and Express Scripts Holding Co. (NASDAQ:ESRX) notified the company that arthritis drugs Duexis ibuprofen/famotidine ( HZT-501) and Vimovo naproxen/esomeprazole will no longer be on their formularies and will be placed on their exclusion lists effective January 1, 2015. Horizon, which reported 1Q14 U.S. sales of $34 million for Vimovo and $13.9 million for Duexis, estimates about 20-30% of Duexis and Vimovo prescriptions could be affected.

Horizon said it will "immediately accelerate its patient- and physician-focused commercial model to focus prescriptions through other channels," work with other PBMs and "evaluate price increases." According to the Red Book, the average wholesale price (AWP) of Vimovo increased 597% on Jan. 1, 2014, and the AWP of Duexis has gone up 473% since launch in 2011. Each drug has a wholesale acquisition cost (WAC) of $799.20 for a 30-day supply. ...