VHA has signed a five-year deal to add a broad portfolio of Bristol-Myers Squibb cancer drugs to its private label product line.
Under terms of the agreement, the Irving, Texas-based healthcare alliance expects to generate $600 million in sales of drugs used in cancer treatment, including Taxol.
In the private label program, called VHA Plus, the alliance affixes its own label and markets the products to members in exchange for price breaks and a marketing fee paid by the manufacturer. VHA's marketing fee for these drugs is dependent on it preserving Bristol-Myers Squibb's market share of about 60% for cancer drugs within the alliance.
In 1996, sales of VHA Plus products exceeded $500 million, about 7% of total purchases through VHA.