Drugs Can Often Ride A Wave Of Novelty And Marketing Before Reality Crashes Down

The Washington Post: The Growing Case Against IV Tylenol, Once Seen As A Solution To The Opioid Crisis
In the midst of the opioid crisis, Boston Medical Center added an intravenous version of Tylenol to its arsenal of drugs for pain management. But IV Tylenol was expensive, and after drugmaker Mallinckrodt Pharmaceuticals increased the price, the hospital projected it was on track to spend $750,000 in 2015 on acetaminophen (the active ingredient in Tylenol) in injectable form. "It was going to cost us, without the intervention that happened, more than any other drug on our formulary. Think of the most expensive cancer drug,” said David Twitchell, Boston Medical Center’s chief pharmacy officer. “To me, that didn’t seem justified.” (Johnson, 6/19)

Stat: Lawmaker Calls For Scrutiny Of Drug Discounts — But Not Broader Changes
A key Senate Republican renewed his commitment to ramping up oversight of a controversial drug discount program in a hearing Tuesday. Sen. Lamar Alexander of Tennessee, who chairs the Senate health committee, called for stricter reporting requirements and a closer examination of participants in the so-called 340B program, under which drug makers must give eligible hospitals discounts on their medicines. The hearing was his panel’s third examination of the program. (Mershon, 6/19)

The New York Times: Trump’s Plan To Lower Drug Prices Tests Limits Of The Law
In his effort to bring down prescription drug prices, President Trump is testing the limits of a law that prohibits the government from interfering in negotiations between drug manufacturers and insurance companies that provide drug coverage to more than 42 million people on Medicare. The prohibition was adopted 15 years ago when a Republican Congress added drug benefits to Medicare, and since then Republicans have repeatedly invoked it to quash Democratic demands for the government to rein in drug costs. (Pear, 6/16)

Miami Herald: HHS Secretary Azar Talks Prescription Drug Prices In Miami
With one of the nation's largest Medicare populations, South Florida is home to thousands of seniors who struggle to afford their prescription drugs — precisely the audience that Health and Human Services Secretary Alex Azar wanted to meet with in Miami on Tuesday. ...Though President Donald Trump has said he expects major drug companies to slash prices soon, Azar said discounting medications is easier said than done because — unlike in a typical free market system — lowering prices can put pharmaceutical manufacturers at a competitive disadvantage. (Chang, 6/19)

Stat: FDA Says Drug Shortages Fell Last Year, But Don't Blame The Agency For Persistent Problems 
There’s good news and bad news in the latest report on shortages from the Food and Drug Administration. There were fewer ongoing shortages at the end of last year, but the number of new shortages rose in 2017. To be specific, the number of new shortages totaled 39 drugs and biologics, bucking a downward trend that was registered during each of the previous two years, when new shortages amounted to 26, according to a new FDA report. On the bright side, this is also much less than the 251 new shortages that occurred in 2011. (Silverman, 6/19)

Modern Healthcare: MACPAC Proposes Changes To Medicaid Drug Rebate Program 
The Medicaid and CHIP Payment and Access Commission called on Congress to make key changes to the Medicaid drug rebate program to cut spending on drugs for low-income people. Under the program, Medicaid covers drugs if the pharmaceutical companies are willing to have a national rebate agreement with HHS. Manufacturers must pay a rebate on drugs purchased by Medicaid programs. (Dickson, 6/19)

Marketplace: Senate To Scrutinize Hospitals On Low-Income Patient Profits And Spending
This morning, a Senate committee checks in to see how the cuts to the so-called 340B program, which allows hospitals to buy drugs at a discount, are impacting hospitals and patients. Critics say there’s little evidence that hospitals used the savings to help patients. (Gorenstein, 6/19)

The Hill: Bipartisan Group Of Senators Asks FDA To Examine Drug Shortages
A bipartisan group of senators is asking the head of the Food and Drug Administration (FDA) to provide recommendations to Congress on how to address nationwide drug shortages. Sens. Chris Murphy (D-Conn.) and Bill Cassidy (R-La.) led a letter to FDA Commissioner Scott Gottlieb. They, along with 29 of their Senate colleagues, asked the agency to convene its Drug Shortages Task Force in an effort to determine the causes of these shortages and craft policy recommendations on how to fix them by no later than the end of 2019. (Roubein, 6/18)

Stat: Can A Federal Drug Discount Program Unlock Savings For State Prisons? 
As prices for medicines continue to rise, state prisons are spending more to treat inmates, a problem that has strapped budgets and prompted prisoners to file lawsuits against some state agencies. But a novel workaround might help the states lower their costs. The idea is a bit complicated and not yet vetted but is, nonetheless, intriguing because it would require testing an exemption in the Medicaid program. By doing so, state correctional facilities, which are estimated to spend 15 percent of health care costs on prescription drugs, may be able to save money, according to a new proposal from analysts at The Pew Charitable Trusts, who explored the possibility. (Silverman, 6/14)

CBS News: Study: Almost Half Of Diabetics Skip Medical Care Due To Costs
Almost half of diabetics are cutting back on treatment because of costs, according to a new survey that comes as the skyrocketing price of insulin is prompting lawmakers and physicians to call for more oversight. The American Medical Association, the largest association of physicians in the U.S., last week called for federal intervention to protect diabetics from being exploited by price gouging on insulin products. The group wants the Federal Trade Commission and the Justice Department to track insulin pricing and market competition to protect consumers. (Gibson, 6/18)

The Philadelphia Inquirer: High Insulin Costs Have Diabetes Patients, Doctors Scrambling For Answers
Federal authorities, who frown on people carrying large amounts of foreign drugs into the county, may not agree. But the rising cost of insulin and other supplies required to manage diabetes is such a huge issue that [Mark] Schutta’s suggestion could sound like a great idea to many people. (Rush, 6/20)

The Philadelphia Inquirer: 10 Ways To Save Money On Diabetes Care - And Get Healthier In The Process
On average, people with diabetes spend about $16,750 a year on health care, more than half of which goes to the costs of managing the condition and its many side effects. That’s more than double the bill their peers who don’t have diabetes can expect, according to the American Diabetes Association. (Rush, 6/20)

The Wall Street Journal: Roche To Pay $2.4 Billion For Full Control Of Foundation Medicine
Roche Holding AG on Tuesday said it would pay $2.4 billion to buy the shares it doesn’t already own in Foundation Medicine Inc., furthering its bet on personalized cancer care.The Swiss drug giant, which already owns roughly 57% of Foundation, will pay $137 a share for the U.S.-based company, valuing it at $5.3 billion. (Lombardi, 6/19)

Stat: Investor Coalitions Pushing Drug Makers On Pricing And Opioid Distribution
A pair of investor coalitions is successfully using shareholder proposals to pressure drug makers and wholesalers to change their pricing and oversight of opioid distribution, respectively. And the outcomes reflect the extent to which concerns over these issues are resonating with stockholders. Example one: On Friday, 28 percent of Biogen (BIIB) shareholders voted in favor of a proposal that requires the drug maker to compile reports about the risks created by high prices and examine how pricing strategies propel executive compensation. (Silverman, 6/15)

FierceHealthcare: Experts: High Drug Prices Are Forcing Patients To Make Risky Choices
The "broken" drug pricing system in the U.S. is forcing some patients to make decisions that can negatively impact their health, experts warn. Sameer Awsare, M.D., an internist and associate executive director for The Permanente Medical Group, said an example of this is one of his congestive heart failure patients, who ended up in the emergency room because of poor care management. She had only been taking her medications every other day because she was unable to afford them, Awsare said. (Minemyer, 6/18)

Stat: CAR-T Startup Allogene Picks Up Veteran Analyst Eric Schmidt As CFO
Veteran Cowen biotech analyst Eric Schmidt is joining Allogene Therapeutics, the new CAR-T cancer therapy startup, as its chief financial officer. The formal announcement was made Monday in a joint statement issued by Allogene and Cowen. Arie Belldegrun, the former Kite Pharma CEO and now co-founder and chairman of Allogene, had been recruiting Schmidt for some time, as previously reported by STAT in May. (Feuerstein, 6/18)

Columbus Dispatch: Ohio Workers' Comp Expects To Save Money With New Pharmacy Contract
The Ohio Bureau of Workers’ Compensation is dumping its pharmacy benefits manager of more than a decade and hiring a new one after discovering the bureau was overcharged millions for prescription drugs. ...A recent audit by the Columbus-based Healthplan Data Solutions found Optum RX overcharged the bureau $5.6 million in 2017. (Candisky, 6/16)