AbbVie wins hep C contract with Washington state in latest 'Netflix' deal

Subscription-based contracts for pharmaceuticals is a relatively new concept. But it's one quickly moving into practice, with Louisiana and Washington both expecting to start these programs this summer.

One industry analyst predicts these programs could spread.

"We fully expect other states to step in and take advantage of these contracts," Ronny Gal, an analyst at Bernstein wrote in an email to BioPharma Dive. "The public health value is compelling."

Gal added that these types of deals also make sense for the companies, as long as the final discounts they concede are relatively modest. "The predictability of earnings is worth a lot," he added.

That's particularly the case in the hepatitis C market, where declining patient starts have made revenue growth a more uncertain prospect.

Washington hopes to finalize the contract and begin the program by July 1, Judy Zerzan, chief medical officer for the Washington State Health Care Authority, said in an interview with BioPharma Dive. That will coincide with the state completing the drafting of its broader plan to eliminate hep C in a decade.