Kalderos' 2021 annual report sets a vision for tech-enabled, patient-centered solutions in Drug Discount Management

The inaugural annual report from Kalderos, a healthcare technology startup, includes data-driven insights on systemic inefficiencies in the drug channel and charts the company's rapid growth

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Kalderos

Apr 20, 2021, 11:54 ET

CHICAGO, April 20, 2021 /PRNewswire/ -- Innovative tech company Kalderos today released its 2021 annual report. The report highlights the company's perspective on key challenges in the drug channel, leverages unique data to provide insights into drug discount programs, and advocates for a new model that utilizes platform technology to make drugs more affordable for patients.

"As we dive deeper into 2021, we see big developments on the horizon for the business of healthcare," said Kalderos CEO Jeremy Docken. "Industry trends are driving change and so is the massive impact of COVID-19. A new administration is tackling drug pricing. During this pivotal moment, it's the perfect time to launch our inaugural annual report."

The report, which contains never-before-published insights leveraged from Kalderos' proprietary data, examines systemic inefficiencies in the drug distribution system, the failure of past interventions to make prescription drugs more affordable for patients, and how a digital platform can address these challenges.

Launched in 2016, the Kalderos platform for Drug Discount Management integrates systems, makes them compatible, and ultimately makes participating in drug discount programs like the 340B Drug Pricing Program simpler and more efficient for all stakeholders. The platform also enabled the creation of the nation's largest dataset of confirmed duplicate discounts, driving unique and unprecedented understanding on how the 340B program operates, and the extent and causes of inaccurate payments.

These original findings include Kalderos' estimated total duplicate discounts between the 340B Drug Pricing Program and the Medicaid Drug Rebate Program. The company's projections suggest that these duplicate discounts, which are prohibited by statute, reached anywhere from $933 million to $1.6 billion in 2019. The company estimates that 68% of this 2019 total originates from managed Medicaid programs (MCOs).

Additional insights from the Kalderos data science team track the growth of drug rebates and discounts across Medicaid, Medicare Part D, commercial insurance and 340B. Their findings show a compound annual growth rate of 47% in 340B from 2014-2019, highlighting the significance of this program and the crucial need for program stakeholders to solve program challenges through trust, transparency and collaboration.

The report also charts the growth of the company since its launch in 2016, $7 million in Series A funding in 2019 and $28 million in Series B funding in 2020. Since receiving its Series B funding in June 2020, the company added 67 new hires to the team, more than doubling in size.

Likewise, the company has dramatically expanded its network of stakeholder partners in 340B. Kalderos' drugmaker partners now account for around a quarter of all Medicaid prescription drug spend. More than half of all hospitals who participate in the 340B program now use Kalderos' provider-facing Discount Monitoring tool. And nearly every state Medicaid agency has worked with Kalderos to identify and resolve duplicate discounts.

The 2021 annual report charts this history, but also sets a vision for the company's future as it continues its trajectory of rapid scaling. The company's product roadmap includes an expansion into data-driven, transparency-minded platform solutions for other drug discount programs.

Titled "Making health policy work for patients: how platform solutions enable more affordable drugs," the 2021 annual report is freely available to download now.

About Kalderos

Kalderos created the world's first Drug Discount Management platform, which uses sophisticated models and machine learning to resolve noncompliance in drug discount programs. The company's solutions include Discount Monitoring, which identifies and resolves historical instances of noncompliance, and 340B Pay, which allows providers of any size to request 340B rebates and manufacturers to verify and pay them through a third party payment partner. Based in Chicago, Kalderos was founded in 2016 by a team dedicated to reducing inefficiencies in the U.S. healthcare system, empowering everyone to focus on the health of people. Learn more at kalderos.com.

SOURCE Kalderos