Gilead, Purdue Pharma In The Hot Seat

Stat: State AGs Urge HHS To Sidestep Gilead Patents To Boost Remdesivir Access
A bipartisan group of state attorneys general is urging the federal government to sidestep the patents held by Gilead Sciences (GILD) for remdesivir, the only authorized treatment for Covid-19, over frustration with pricing and supplies set by the manufacturer. In arguing their case, the state officials maintain Gilead has been “unable to assure” a sufficient supply of the medication to hospitals across the U.S. and has “[placed] its profit margins” over patients by charging the federal government $2,340 for a five-day treatment course, even though U.S. taxpayer dollars contributed to the discovery of the drug and manufacturing costs are reportedly low. (Silverman, 8/4)

The Wall Street Journal: Justice Department Seeks As Much As $18.1 Billion From Purdue Pharma 
The Justice Department is seeking as much as $18.1 billion from bankrupt opioid maker Purdue Pharma LP, new filings show, a demand that could disrupt the company’s monthslong effort to reach a settlement with states and local communities that accuse it of helping fuel the opioid crisis. The filings, made by the Justice Department in connection with Purdue’s bankruptcy case, also telegraph for the first time the nature and scope of yearslong criminal and civil investigations into the OxyContin maker. (Randazzo, 8/4)

In other pharmaceutical news —

CNN: How Kodak Went From Photography Pioneer To Government-Appointed Pharmaceutical Producer 
Kodak is back in the news again after some time flying under the radar, and for a somewhat surprising reason: The Trump administration has tapped the legacy film and photography pioneer to produce pharmaceutical ingredients. The company will receive a $765 million government loan to launch a new division called Kodak Pharmaceuticals, which will eventually produce as much as 25% of the active ingredients for generic medications in the United States. The deal helps fulfill a key Trump administration priority to reduce dependence on foreign production of drugs and other crucial products. (Duffy, 8/4)

Stat: What If A Pricey Rare-Disease Drug Works As A Covid-19 Treatment?
Some of the existing drugs scientists are testing as Covid-19 treatments have a special status for rare disease treatments, and the price tags to match — prompting early warnings from academics and drug pricing reform advocates that if one is effective, access could be an issue. At issue are so-called “orphan drugs,” which get special exclusivity perks from the Food and Drug Administration because they treat a rare disease. Drugs get to keep that designation — and the perks — even if they’re later approved for a broader category of patients. That exclusivity often translates into higher prices, especially for rare disease drugs where demand is expected to be low. (Sokolow, 8/5)