Analysis: Prices On 7 Common Drugs Raised With No Proof Of New Benefits

Prescription Drug Watch: For more news on rising drug costs, check out our weekly roundup of news coverage and perspectives of the issue.

Stat: The Prices Of 7 Drugs Were Hiked Without Proof Of New Benefits
During 2020, drug makers raised prices on seven widely used medicines by substantial amounts without any new clinical evidence to justify the increases, leading patients and health insurers in the U.S. to spend an additional $1.67 billion last year, according to a new analysis. Much of the added spending was attributed to just one drug – AbbVie’s (ABBV) Humira treatment for rheumatoid arthritis and other ailments. The price rose by 9.6%, after rebates and discounts, which led to an extra $1.4 billion in spending had the price not been raised, according to the analysis by the Institute for Clinical and Economic Review, a nonprofit that mostly assesses the cost effectiveness of new medicines. (Silverman, 11/16)

Modern Healthcare: Unsubstantiated Drug Price Hikes Cost $1.67B Last Year
Pharmaceutical companies continue to increase the prices of their most profitable drugs despite minimal year-over-year improvements, according to a new report. Seven of the top 10 drugs that inflated U.S. healthcare spending in 2020 due to price increases did not offer substantial clinical benefits, the Institute for Clinical and Economic Review's analysis found. The price hikes of those seven drugs increased healthcare spending by an estimated $1.67 billion last year, with AbbVie's rheumatoid arthritis biologic accounting for $1.4 billion alone. (Kacik, 11/16)

Axios: Viatris' Biosimilar Insulin Semglee Is Priced Almost The Same As Lantus 
Drug company Viatris has priced its new generic insulin, called Semglee, at almost $270 per vial, a mere $20 cheaper than the longstanding competitor that has existed for years. The rollout of Semglee highlights the specific warped incentives within the insulin market, where diabetes patients have struggled to afford their insulin for years. (Herman, 11/17)

On network contract matters —

KHN: Patients Get Stranded Out Of Network As Insurer-Hospital Contract Talks Fall Apart
In September, when Shelly Azzopardi went to Wellstar Kennestone Hospital with abdominal pain, she didn’t worry about her insurance. Doctors said she had a case of appendicitis. But she also tested positive at the hospital in Marietta, Georgia, for covid-19. Physicians decided not to do surgery and treated her with antibiotics and painkillers. Azzopardi, 47, went home after a couple of days in the hospital, feeling better. But in October, the appendix pain again flared. Her husband took her to the same hospital, where surgery was performed successfully. This time, though, she ran into a snag with her insurance. (Miller, 11/17)

In other industry news —

The Wall Street Journal: GE Pounces On Surging Healthcare Demand With Spinoff
In spinning off its healthcare business, General Electric Co. GE -3.11% is betting on the fast-growing diagnostic-imaging-equipment market, a sector facing disruption from artificial intelligence and growing competition from startups as well as established players. GE Healthcare—which makes MRI, ultrasound and other healthcare equipment—will be spun off in early 2023, with GE planning to retain a 19.9% stake in the new firm. Already dominant in the sector, as a stand-alone it would be able to move faster and have more capital to scoop up companies and technologies, analysts said. (Kantchev, 11/16)

Modern Healthcare: SCAN Group Launching In-Home, Virtual Medicare Advantage Provider
SCAN Group announced Tuesday it's launching a new medical group specializing in virtual and in-home primary care for Medicare Advantage members, many of whom will be covered under its own health plan subsidiary. Long Beach, California-based SCAN, whose holdings include the Medicare Advantage plan SCAN Health Plan, said the new company will be called Welcome Health. SCAN Group, which will be Welcome's majority owner, said the for-profit provider will offer affordable care to members of SCAN Health Plan and other Medicare Advantage plans. (Bannow, 11/16)

AP: Northern California Kaiser Permanente Pharmacists Reach Deal
Kaiser Permanente reached a tentative agreement on a three-year contract with pharmacists in its Northern California region early Monday, the company said. “In light of this, the Guild for Professional Pharmacists has canceled the strike that was expected to begin November 15 and our pharmacies will return to normal operations later today,” Kaiser Permanente said in a statement. (11/15)

Reuters: Gilead Sues Lupin Over Proposed Generic Of Symtuza HIV Drug
Gilead Sciences Inc has said an Indian generic drugmaker's proposed version of the HIV drug Symtuza infringes its patents, in a lawsuit in Delaware federal court. Gilead accused Lupin Pharmaceuticals of infringing two patents with its Abbreviated New Drug Application for the generic in a complaint entered on Tuesday. ANDAs, which companies file for U.S. Food and Drug Administration approval of generic drugs, assert that the relevant drug patents are invalid or that the generic wouldn't infringe, and open the applicant to infringement claims from the patent owner. (Brittain, 11/16)

Reuters: Roche Walks Away From Atea Partnership To Develop COVID-19 Pill
Roche Holding AG has ended a partnership with Atea Pharmaceuticals Inc to jointly develop a COVID-19 antiviral pill, the Swiss drugmaker said on Tuesday, a month after the drug failed to help patients in a small study. Boston-based Atea's shares fell 11% to $10.08 in extended trading, set to add to the 72% slump this year. Many companies are racing to develop an oral pill as it can be taken as an early at-home treatment to help prevent COVID-19 hospitalizations and deaths, a promising new weapon in the fight against the pandemic. (11/16)

Modern Healthcare: LifePoint Health Launching Health Tech Incubator
LifePoint Health is teaming up with venture studio 25madison and Apollo Global Management to launch a startup incubator for health tech in Nashville, according to a news release Tuesday. Dubbed 25m Health, the new venture will kick off with $20 million in seed funding. The companies hope combining LifePoint’s healthcare knowledge with 25madison’s startup experience will help spawn a wave of innovative companies, products and services to improve healthcare quality, access and patient outcomes and lower costs at the same time. (Brady, 11/16)

Stat: Nancy Hopkins Wins STAT Biomedical Innovation Award
Nancy Hopkins, an MIT professor who has made significant strides in molecular biology and a tireless advocate for gender equity in science, was named the recipient of STAT’s 2021 Biomedical Innovation Award on Tuesday. “It’s very easy to forget how much progress there has been because we haven’t arrived where we’d like to be. So we see the problems that still lie ahead. But you periodically have to pause and say, ‘Oh, my gosh, look how far we came,’” said Hopkins at the 2021 STAT Summit, where she was honored for her work. (Cueto, 11/16)

In news on antibiotic resistance —

CIDRAP: Scottish Report Shows 5-Year Decline In Human Antibiotic Use
A report today from Scotland highlights reduced antibiotic use in the country since it adopted a One Health approach to combatting antimicrobial resistance (AMR). The report, from Antimicrobial Resistance and Healthcare Associated Infection (ARHAI) Scotland, shows that total antibiotic use in people was 19.2 defined daily doses per 1,000 population per day in 2020, a 17.1% reduction since 2016. The report notes that the 11.8% reduction from 2019 to 2020 likely reflects the impact of the COVID-19 pandemic, which affected antibiotic use in all healthcare settings. (11/16)

CNBC: Antibiotic Resistance Could Be The Next 'Hidden Pandemic': UK Experts
The coronavirus pandemic grabbed the world’s attention in early 2020 and has failed to let go ever since, but U.K. experts are warning that antibiotic-resistant infections, often described as a “hidden pandemic,” should be the next big concern. One in five people in the U.K. with a bloodstream infection in 2020 had an antibiotic-resistant one, according to the U.K Health Security Agency, and that was even after a decline in the number of antibiotic resistant infections recorded in 2019. There are now fears that, as winter approaches and we slowly emerge from the global Covid-19 outbreak, antibiotic resistance could increase again. (Ellyatt, 11/17)

Also —

Modern Healthcare: Studies Show Less Staffing, More Surprise Bills After Private Equity Takeovers
Plenty of lawmakers, consumer advocates and others are leery of private equity’s growing presence in the healthcare sector. They worry investors will cut corners when it comes to staffing, supplies or safety in the name of saving a buck. There have been examples of private equity firms eliminating less profitable service lines after buying providers. On the revenue side, private equity has paid tens of millions of dollars to settle allegations that it fraudulently oversold products or services, including to the government. (Bannow, 11/16)