Judge Considers Delaying CVS-Aetna Merger, Citing Potential Anti-Competitive Harms
But antitrust experts say it's only possible for the Department of Justice to block the merger. DOJ approved the $70 billion deal in October. Meanwhile, CVS and Aetna are moving ahead with integration plans. Other industry news looks at CVS' new prescription drug-price plans and rising costs of Pitocin and Ketamine.
The Hill:
Judge Adds New Hurdle To CVS-Aetna Merger
A federal judge could throw a wrench into the mega-merger between health giants CVS and Aetna. U.S. District Court Judge Richard Leon in Washington said this week he is considering delaying the $70 billion merger, and keeping the companies separate until he has a chance to weigh in. (Weixel, 12/6)
Stat:
Will A New CVS Pricing Model Lower Drug Costs For Health Plans?
As criticism of pharmacy benefit managers intensifies, CVS Caremark (CVS) plans to roll out a new prescription-drug pricing model next month for health plans that the company maintains will “simplify” costs and simultaneously add a dose of transparency to a highly opaque system. In short, the PBM will offer so-called guaranteed net pricing for average prescription claims, whether medicines are purchased by mail or from retail or specialty pharmacies. CVS says it will pass through all rebates and administrative fees to its clients while assuming responsibility for manufacturer price hikes and shifts in the mix of brand and generic drugs. (Silverman, 12/5)
Reuters:
CVS Offers 'Guaranteed Net Cost' For Pharmacy Benefit Clients
Pharmacy chain and benefits manager CVS Health Corp on Wednesday said as of Jan. 1 it will offer a new prescription benefit option guaranteeing its health plan clients 100 percent of any rebates, discounts or other fees paid by drugmakers. The new plan model is aimed at providing greater drug cost simplicity, predictability and transparency, CVS said. (12/5)
Bloomberg:
Pitocin And Ketamine Prices Are Surging As Shortages Drag On
The price of a drug given to millions of women in the U.S. every year to help speed up labor or recover from childbirth more than doubled this week, in a sign of deepening market dysfunction that has left some health-care providers scrambling to find critical medicines. Endo International Plc raised the price of a one milliliter single-dose vial of Pitocin at the start of December to $3.60, according to its wholesale acquisition cost, up from $1.68 previously. (Koons and Griffin, 12/6)
And news on two industry recalls —
Atlanta Journal-Constitution:
Infant Ibuprofen Sold At Walmart, CVS, Family Dollar Recalled
Tris Pharma Inc. is recalling three lots of infants' liquid ibuprofen sold at Walmart, CVS and Family Dollar stores in the U.S., the Monmouth, New Jersey-based drug company announced in a news release Wednesday. (Ewing, 12/6)
Miami Herald:
Valsartan Recall: Mylan Expands Drug Alert Due To Cancer
A week after two more blood pressure drugs were recalled because they have a possible cancer-causing ingredient, the U.S. based Mylan Pharmaceuticals expanded its consumer-level voluntary nationwide recall to include all lots of Valsartan-containing products within dates of expiration. (Cohen, 12/5)
From Kroger, Walgreens, Bayer, Takeda and more companies —
The Washington Post:
Kroger And Walgreens Want You To Have A One-Stop Shop For Food And Drugs
A one-stop shop for your grocery and pharmacy needs is what Kroger and Walgreens have in store. Through “Kroger Express,” the grocer will add more 2,300 products at 13 Walgreens locations in Northern Kentucky, selling dairy, meat, produce, frozen foods and more. The first pilot store is already open in Florence, Ky., with the remaining 12 locations debuting early next year. Shoppers can also order Kroger groceries online to be picked up at Walgreens. (Siegel, 12/5)
The Wall Street Journal:
Bayer Lays Out Plans In Hopes Of Easing Investor Headaches
Germany’s Bayer AG Wednesday laid out ambitious sales and profit targets in its latest effort to convince the market it is serious about boosting profits, reducing debt and stopping a downward spiral in its stock price that has put management under heavy pressure. (Bender, 12/5)
Reuters:
Takeda Clears Key Hurdle As Investors Back $59 Billion Shire Deal
Takeda Pharmaceutical has won shareholder approval for its $59 billion takeover of London-listed Shire, creating a global powerhouse that has a stronger drugs pipeline but is also saddled with massive debt. Takeda will be joining the ranks of the world's top 10 drugmakers and gaining expertise in rare diseases through the deal, the biggest overseas acquisition by a Japanese company. (12/5)
Stat:
This Biotech VC Firm Was Called An Agent Of China. It's Run By U.S. Citizens
When the Trump administration accused China of “unfairly” using venture capital to acquire technologies last month, it singled out the firm 6 Dimensions Capital, calling it a suspicious agent of the Chinese government bent on acquiring U.S. biotechnology. That came as a surprise to 6 Dimensions’ CEO, Leon Chen, who said neither he nor anyone at his firm had ever been contacted by the U.S. trade representative, which issued the report naming his firm. (Robbins, 12/6)
Stat:
Legendary Biotech VC Steven Burrill Sentenced To 2.5 Years For Fraud
Famed biotech venture capitalist G. Steven Burrill is headed to federal prison after pleading guilty to defrauding his investors and falsifying tax returns. Burrill, 74, faced up to 30 years in prison and $750,000 in fines, but he will serve just 30 months and pay $200 after signing a sealed plea agreement last year. Burrill will surrender to authorities on March 4, according to court documents. (Garde, 12/5)
