Supreme Court Agrees To Hear Potentially Monumental Case Over Extent To Which States Can Regulate PBMs

Stat: Supreme Court Will Review Arkansas Law Governing PBMs
In a move with the potential to affect health care costs, the U.S. Supreme Court agreed to review a case that will determine the extent to which the states can regulate pharmacy benefit managers, the controversial middlemen in the pharmaceutical supply chain. At issue is an Arkansas law that governs the reimbursements rates that pharmacy benefit managers, or PBMs, must pay to pharmacies. Specifically, the law requires PBMs to reimburse pharmacies at or above their wholesale costs paid for generic drugs. (Silverman, 1/11)

Politico Pro: Supreme Court To Review States' Ability To Regulate PBMs
The Supreme Court will hear a case that could determine the extent states can regulate pharmacy benefit managers, a prominent target of federal and state attempts to control drug costs. Justices today accepted Arkansas' request to review an appeals court ruling that blocked the state from regulating the companies that administer drug benefits for health plans on the grounds such activity is preempted by the federal Employee Retirement Income Security Act. (Karlin-Smith, 1/10)

The Wall Street Journal: Geneticists Call On Myriad To Share Proprietary Data To Aid Gene Tests
A leading medical society is calling on Myriad Genetics Inc. and other lab companies to share proprietary data from their genetic testing in a public database, to help the scientific community better assess the disease-causing risk of mutations. The call by the board of the American College of Medical Genetics and Genomics, a professional organization that also publishes influential guidelines on classifying genetic variants, came in response to a Dec. 20 article in The Wall Street Journal. (Marcus, 1/12)

Modern Healthcare: Government Watchdog Finds Lax Oversight Of 340B Discounts
A government watchdog found that deficiencies in federal oversight of the 340B drug discount program may have allowed some nongovernmental hospitals that do not meet eligibility requirements to participate anyway.Hospital participation in the 340B discount program has tripled since 2009, and as of January 2019, 67% of those hospitals are private, not-for-profit hospitals. To participate in the 340B discount program, these hospitals have to prove that they have a contract with state or local governments to provide healthcare services to low-income individuals who are not eligible for Medicare and Medicaid, but the Government Accountability Office found several weaknesses in how the Health Resources & Services Administration oversaw these contracts. (Cohrs, 1/10)

The Wall Street Journal: High Drug Prices? Pharma Startup Thinks It Has The Right Medicine
A startup pharmaceuticals company wants to capitalize on the backlash against high drug prices by developing slightly different versions of expensive brand-name drugs and selling them at a significantly lower price than competitors. The new company, EQRx Inc., aims to bring 10 drugs to market over the next decade and sell them for perhaps as little as one-third to one-fifth of rivals’ prices, the company’s co-founder and Chief Executive Alexis Borisy said. (Walker, 1/12)

Stat: Agios CEO Forecasts 'Line Of Sight' To More Approved Drugs And Profits
Agios Pharmaceuticals intends to double the number of approved medicines it sells from two to four within the next six years, while also expanding into new indications and deepening its pipeline by another two programs. The new Agios (AGIO) strategic plan — including a mandate to trim financial losses and become cash-flow positive — was announced Sunday ahead of a presentation by CEO Jackie Fouse on Monday morning at the J.P. Morgan Healthcare Conference. (Feuerstein, 1/12)

Stat: Lilly To Acquire Dermira For $1.1 Billion, Adding Eczema Drug To Its Pipeline
Eli Lilly said Friday that it will acquire Dermira, a small biotech developing drugs for chronic skin conditions, for $1.1 billion. The centerpiece of the deal is the Dermira drug called lebrikizumab that aims to treat people suffering from moderate-to-severe atopic dermatitis, the most common form of eczema, a disease characterized by inflamed, itchy, and scaly skin. (Feuerstein, 1/10)

Boston Globe: Cambridge Startup Debuts With A Bold Promise: To Make Drugs With Dramatically Lower Prices
Countless biotechs are launched with promises of “game-changing” medicines. But a Cambridge startup that debuted Sunday is pledging something seldom heard from drug makers: dramatically lower prices. With $200 million in venture capital at their disposal, the leaders of EQRx say they plan to create innovative patented prescription medications — not generics — that will be at least as good as those on the market and cost a third of the rival products. (Saltzman, 1/12)

Miami Herald: Epilepsy, Bipolar Drug Recalled After Contamination Found
One lot of epilepsy and bipolar disorder tablets got recalled Friday after someone discovered a cross-contamination with a drug used in heart and blood pressure medication, according to the FDA-posted recall. The epilepsy and bipolar medication is Lamotrigine 100mg. Lamotrigine is also sold under Lamictal brand names. (Neal, 1/11)

The Wall Street Journal: Bristol’s Merger With Celgene Is Already Paying Dividends, CEO Says
Bristol-Myers Squibb Co., BMY -0.34% fresh off completing one of the largest drug-industry mergers ever, is counting on the acquisition to pay off quickly with new products and ease Wall Street concerns. Bristol waited nearly 11 months for its controversial $74 billion deal for Celgene to close, in November. During that span, U.S. regulators approved two cancer drugs from Celgene, and a third, for treating multiple sclerosis, could get the go-ahead by March and eventually provide what analysts see as $3 billion in annual sales. (Hopkins, 1/12)