Amgen Enters Direct-to-Consumer Market with Discounted Cholesterol Drug
Pharmaceutical giant Amgen has announced the launch of AmgenNow, a direct-to-consumer program offering its cholesterol medication Repatha at a cash price nearly 60% below the current list price. This initiative is available to all patients, including those without insurance or with high-deductible plans, enabling them to purchase the drug directly from Amgen at $239 per month. Amgen’s pricing matches the lowest it receives in any developed economy, marking a significant step toward improving drug affordability in the U.S. This move follows a broader industry trend and political pressure to make medications more accessible and affordable.
Pharmaceutical Industry Accelerates Direct-to-Consumer Sales Efforts
- Eli Lilly: Launched LillyDirect in January 2024, focusing on weight loss drug Zepbound and other treatments, offering telehealth prescriptions and home delivery with significant discounts.
- Novo Nordisk: Offers weight loss drug Wegovy and diabetes medication Ozempic at reduced prices through NovoCare, targeting cash-paying patients without insurance coverage.
- Pfizer: Introduced PfizerForAll, a platform for telehealth scheduling, prescription fulfillment, and savings programs for migraine, Covid-19, and flu medications.
- AstraZeneca: Launched AstraZeneca Direct, selling diabetes and asthma drugs at discounts up to 70% for cash-paying U.S. patients.
- Novartis: Plans to launch a platform offering immunology drug Cosentyx at a 55% discount, with potential expansion to other medicines.
- Bristol Myers Squibb: Expanded direct sales with discounted offerings for blood thinner Eliquis and psoriasis drug Sotyktu.
These programs typically provide free shipping and bypass intermediaries such as pharmacy benefit managers, allowing manufacturers to capture revenue currently distributed across the supply chain.
Political Momentum and Regulatory Initiatives Drive Change
The Trump administration has actively encouraged drugmakers to adopt direct-to-consumer sales models as part of a broader strategy to reduce drug prices. In July, President Trump sent letters to 17 pharmaceutical companies urging specific actions to lower patient costs, including launching direct sales platforms. Central to this effort is the proposed “most favored nation” policy, which aims to link U.S. drug prices to lower international benchmarks. Additionally, the administration plans to launch TrumpRx.gov, an online portal offering discounted branded drugs, with Pfizer agreeing to provide many treatments at average discounts of 50%, reaching up to 85%.
CMS Administrator Dr. Mehmet Oz Endorses Affordability Initiatives
Dr. Mehmet Oz, Administrator of the Centers for Medicare & Medicaid Services (CMS), has expressed strong support for efforts to make prescription drugs more affordable. He anticipates that by the end of President Trump’s term, 95% of drugs in the U.S. will be priced at levels that the public can be proud of. Dr. Oz highlights the importance of the Trump administration’s drug pricing policies, such as the most favored nation rule and the TrumpRx platform, alongside Medicare drug price negotiations under the Inflation Reduction Act. He also acknowledged ongoing discussions about insurance coverage for high-cost weight loss drugs like GLP-1s.
FinOracleAI — Market View
The pharmaceutical sector is undergoing a significant shift as direct-to-consumer drug sales gain traction amid political and regulatory pressures to reduce costs. Amgen’s recent launch of AmgenNow exemplifies this trend, signaling potential for broader adoption industry-wide. By bypassing traditional intermediaries and offering discounted cash prices, drugmakers can improve affordability for patients, particularly the uninsured or underinsured, while capturing additional revenue streams. However, this model’s long-term impact on insurance dynamics and pharmacy benefit managers remains uncertain.
- Opportunities: Increased patient access through discounted pricing and telehealth integration; revenue capture by manufacturers; potential to reshape drug pricing structures.
- Risks: Possible resistance from intermediaries and insurers; regulatory challenges; uncertain insurance coverage for high-cost specialty drugs.
Impact: The direct-to-consumer drug sales movement is poised to disrupt traditional pharmaceutical distribution channels, potentially lowering costs for patients and reshaping industry economics over the next several years.
