Morning Briefing
Summaries of health policy coverage from major news organizations
As Pharmaceutical CEOs Bow Out, One Leaves Mixed Legacy And The Other Stability
The Wall Street Journal: Glaxo, Rio Bosses Out: Which CEO Departure Brings Real Relief?
The departure of a chief executive is a moment—sometimes marked by worries about the future; sometimes accompanied by relief that change is coming. Share-price reactions Thursday to news that the bosses at global mining heavyweight Rio Tinto and pharmaceutical giant GlaxoSmithKline are departing are a poor guide to which one’s which. Rio’s stock jumped while Glaxo fell. (Thomas, 3/17)
In other pharmaceutical news, other firms are affected by Valeant's bad news, a drugmaker's repurchase plan comes amid stock-price decline, and Turing executives appear before the Senate Committee on Aging —
The Wall Street Journal: Valeant Jitters Infect Specialty Drug Sector
Worries about Valeant Pharmaceuticals International Inc. seem contagious. Shares of other specialty pharmaceutical firms have fallen this week, as the Canadian drugmaker on Tuesday cut its earnings guidance and warned about a potential default on its debt due to a delayed filing. Among those also pummeled: some drug companies where investors see a resemblance to Valeant’s business model. (Farrell, 3/17)
The Wall Street Journal: Drugmaker Mallinckrodt Increases Stock Buyback
Mallinckrodt PLC said its board authorized the repurchase of an additional $350 million of the specialty biopharmaceutical company’s stock, which is trading around multiyear lows. Mallinckrodt, spun off from Covidien PLC in 2013, said in a news release Thursday that the latest stock-buyback plan reflects its “strong current performance and future prospects” as well as its “inherent long-term earnings power and free cash generation capacity.” Shares of Mallinckrodt have been under pressure amid investor concerns about the company’s business model. (Stynes, 3/17)
The Associated Press: Lawmakers Challenge Turing Executives On Drug Price Hikes
The former top lawyer for Turing Pharmaceuticals said Thursday that he and other executives warned Martin Shkreli against the drastic price hike that triggered a national backlash against the company and its then-32-year-old CEO. The Senate Committee on Aging subpoenaed current and former Turing executives to appear Thursday and explain the fiftyfold price hike of Daraprim, a drug used to treat a life-threatening parasitic infection. Lawmakers struggled to describe the company’s behavior, which Sen. Bob Casey, D-Pa., called “pure evil.” (Perrone, 3/17)
