Celebrating 30 Years of Shared Success

Three Decades of Innovation, Independence, and Expertise at PSG

“Our values don’t change. They are enduring,” said PSG President Michael Lonergan in an interview celebrating PSG’s 30th anniversary. Lonergan was drawn to PSG by his “respect for the people and PSG’s reputation for being tough but fair and smart.” He is amazed at how far PSG has evolved since he joined around 8 years ago. Yet, as he noted, much has remained constant – the culture of trust, willingness to innovate, and subject matter expertise driving the market forward. PSG’s mission is to relentlessly advocate for clients as it partners together to develop innovative drug management solutions that deliver exceptional insights with financial and clinical value. After 30 years, that mission rings truer than ever. Join us in reflecting on three decades of market-leading pharmacy insights and uncompromising client support.

The Early Years

Pharmaceutical Strategies Group (PSG) was founded in 2003 by Dave Borden. Having previously worked with leading benefit consulting firms, he spotted an unmet market opportunity to apply his expertise to help healthcare payers navigate an emerging pharmacy benefit ecosystem that was rapidly increasing in complexity. However, we must rewind further to find the true beginning.

In 1994, Don Lea founded AELRx, built on client advocacy evident to its municipal, broker, and major payer clients. AELRx exemplified expertise and client-centricity which aligned perfectly with Dave Borden’s vision when he acquired the company in 2004, renaming it to Pharmaceutical Strategies Group (PSG).

“Dave said countless times that when he founded PSG, it was to create a place for great people to do great work,” said Rebekah Gregg, COO at PSG. “He anchored that goal with an unwavering commitment to the core values of integrity, shared success, innovation, excellence, and stewardship.” These values have become deeply rooted within the culture of PSG over time.

From internal meetings that welcomed families to ongoing generosity toward employees, Dave prioritized PSG’s people. New hires gained the chance to create a positive impact through meaningful work. They did not come to PSG for complacency – they came to challenge themselves and solve problems. Over the years, that’s exactly what PSG’s people have done.

Adapting to a Changing Landscape

When asked how PSG evolved to meet changing market demands, Gregg said, “Clients turned to PSG for their most complex challenges, and our people were there to meet them.” Innovation has always been a large part of PSG’s culture, and over the years, PSG innovated to address the increasingly complex issues brought by clients.

Market events such as the change in average wholesale price (AWP) reporting, the introduction of hepatitis C drugs which were considered very expensive at the time, the “generic cliff,” the growth of specialty drugs, COVID-19, constant legislative changes, and the rise of biosimilars are just a few of the key areas that stood out as times where PSG adapted to address the market, according to Senior Vice President and Practice Lead for Plan Sponsors, Mike Medel. “We’re not set in the way we do things,” said Medel. “We have a constant focus on adapting to meet the unique needs of our clients because the industry is constantly adapting. We are always looking forward and are not afraid of digging deeper into areas that the industry may struggle with.” Leveraging this adaptive mindset, PSG has launched numerous innovative services over the years to answer the call of our clients and the industry, including a recent few listed below.

2011	PSG acquires Artemetrx, a robust health analytics platform
2014	PSG enhances Artemetrx to address rising specialty drug costs
2019	PSG Complete launches, a comprehensive pharmacy benefit solution
2020	Modernization developments are made to the Artemetrx analytics platform
2022	PSG strengthens Artemetrx to amplify reporting capabilities and PBM oversight

However, it hasn’t always been smooth sailing for PSG, which faced its share of challenges over the years. “We don’t sweep these under the rug. They’re as vital to our success as the wins,” said Lonergan. Although infrequent, PSG has lost important clients from time to time. In these moments, Lonergan was amazed by the team’s response as they absorbed the hardships and rebounded while clinging to a continued belief in PSG’s mission and values. This collective and individual fortitude has enabled PSG to withstand the test of time. “PSG’s survival and success has always hinged on our people,” Gregg stated.

Innovation and resiliency remain crucial to PSG’s identity. As current challenges arise in areas like GLP-1s and cell and gene therapy, PSG continues to educate and drive strategy for clients. Most recently, it is leading the market in developing and supporting the PSG Modular PBA® model, in which payers unbundle pharmacy benefits administration services across multiple vendors to enhance control and provide a best-in-class pharmacy benefit. “Innovations like the PSG Modular PBA® model are at the very core of how PSG operates. By anticipating market trends, we ensure our clients receive cutting-edge support that not only meets but exceeds the evolving needs of our clients,” said Senior Vice President and Practice Lead for Health Plans, Beth Hebert-Silvia.

Steadfast Independence and Expertise

In addition to innovation, a commitment to independence and expertise has always been at the forefront of PSG’s values. From the organization’s beginning, PSG consultants demonstrated this, serving clients from several different market areas while ensuring that the best interest of the client was their guiding principle. “Everyone says they put their clients first, but it’s been incredible to see PSG embody this commitment. There is a reason the saying ‘PSG relentlessly advocates for its clients’ exists,” said Medel. This breadth of experience laid a strong foundation for growth and allowed the company to gain invaluable insights across various sectors. As PSG’s client base expanded, the company strategically evolved, developing specialized areas of expertise to cater to plan sponsors, health plans, labor unions, health systems, and more. This specialization enabled PSG to offer more tailored, in-depth solutions to its clients. PSG now supports clients of all sizes and markets with their pharmacy benefits, and is even more equipped to do so after a recent strategic partnership.

In 2021, Dave Borden made the decision to find the right company to help elevate PSG’s growth. He was very thoughtful to ensure he found a proper cultural fit to continue the legacy that had been built. EPIC, PSG’s current parent company, not only shared that culture but valued PSG’s unique expertise in the pharmacy benefit space. EPIC is known for unique and innovative approaches coupled with a depth of industry expertise across key lines of insurance, qualities appreciated by PSG. The partnership was a great fit and continues to thrive today. Another example of PSG’s independence is shown in this observation by Gregg, “If we hadn’t prioritized independence and instead took additional or third-party fees for our services, our consulting business could have grown much larger and faster. However, organizations started to seek us out because they prioritized that independence and our commitment to our values.” PSG proudly serves clients’ best interests and continues to be set apart by its independence.

This independence is backed by unparalleled pharmacy benefits expertise. Nearly 20% of PSG staff are pharmacists, and most consultants have been in the industry for over 20 years, coming largely from similar organizations to those they now support. PSG has a unique perspective on pharmacy benefits because it has walked in the same shoes as its clients. PSG publishes four renowned annual industry research reports, and its experts are regularly asked to speak at conferences to share their insights on the market. As PSG leader Beth Hebert-Silvia says, “We challenge the status quo and drive the market towards meaningful change for our clients to deliver sustainable health care.”

The Road Ahead

As PSG continues to honor a legacy of innovation, independence, and expertise, it is always looking forward. “As much as I’m excited about what we’ve done, I’m equally excited about what’s next,” said Lonergan. “The market will keep evolving, and we’ll evolve with it – grounded in principles that won’t change. Data and analytics will be crucial functions within our clients’ ecosystems, needing meaningful business application.” Several examples of this can be seen in upcoming initiatives. New Artemetrx solutions continue to be developed to address key challenges in the industry such as gene therapy costs and PBM contract performance transparency. PSG’s Medicare expertise has expanded with the addition of new talent and a broadened service offering. The Modular PBA model is becoming more prevalent, and PSG leads the market in supporting clients through every step of the process.

PSG is primed to continue its growth in the years to come, backed by a singular theme that has remained since 1994: people. As long as PSG has great people who maintain and protect its guiding principles, it will continue flourishing. As Michael Lonergan affirmed, “Our people and our values are what stand out most about PSG. We’ve codified our beliefs and now need to continue to be good stewards of that framework.” Thirty years of excellence is quite an accomplishment, but judging by PSG’s driven team, it is nowhere near the end. Reach out and experience it for yourself. Our team of innovative, passionate, and reliable experts would be honored to partner with you toward your success.