Morning Briefing
Summaries of health policy coverage from major news organizations
Bayer Must Pay $1.56 Billion Over Claims Roundup Caused Cancer
Reuters: Bayer Ordered To Pay $1.56 Billion In Latest US Trial Loss Over Roundup Weedkiller
A Missouri jury ordered Bayer (BAYGn.DE) to pay $1.56 billion to four plaintiffs who claimed the company's Roundup weedkiller caused injuries including cancer, a verdict that could intensify investor pressure on the German drugs and agricultural chemicals company to change its legal strategy. The Cole County, Missouri jury found on Friday that Bayer's Monsanto business was liable for claims of negligence, design defects and failing to warn plaintiffs of the potential dangers of using Roundup, according to court documents. (Hals, 11/19)
Reuters: Bayer Woes Pile Up As Blood Thinner Drug Trial Fails
Germany's Bayer (BAYGn.DE) has aborted a large late-stage trial testing a new anti-clotting drug due to lack of efficacy, dealing a fresh blow to the embattled drugmaker and throwing its most promising development project in doubt. Its shares slid 16.4% at 0903 GMT on Monday to their lowest in 12 years, with separate news overnight the company had been ordered to pay $1.56 billion in the latest U.S. lawsuit over its commonly-used Roundup weedkiller also hitting sentiment. (Burger, 11/20)
In other industry news —
The Boston Globe: CVS Pharmacists Face Long Hours, Staff Shortages
CVS Health Corp.’s plans to transform into a 21st century health care organization is running smack into a twin reality: There are not enough pharmacists in the pipeline, and the ones the company employs are reaching a breaking point. CVS pharmacists recently staged a three-day walkout along with colleagues at Walgreens and Rite Aid, a sign of intensifying unease about working conditions. Pharmacists across the country have reported widespread staffing shortages, safety problems, and overloaded work schedules. (Lee, 11/19)
USA Today: UnitedHealth's Artificial Intelligence Denies Claims In Error, Lawsuit Says
For years, vital decisions about who got medical care coverage took place in back offices at health insurance companies. Now, some of those life-altering decisions are being made by artificial intelligence programs. At least that's the contention of the two families who sued UnitedHealth Group this week, saying the insurance giant used emerging technology to deny or shorten rehabilitation stays for two elderly men in the months before they died. (Alltucker, 11/19)
On financial matters across the industry —
Modern Healthcare: Tenet Healthcare To Sell 3 S.C. Hospitals To Novant In $2.4B Deal
Tenet Healthcare has agreed to sell three South Carolina hospitals and related facilities to Novant Health in a $2.4 billion cash deal, the health systems said Friday. The deal, expected to close in the first quarter of 2024, involves Coastal Carolina Hospital in Hardeeville, Hilton Head Hospital on Hilton Head Island and East Cooper Medical Center in Mount Pleasant, plus affiliated physician practices and operations. (Hudson, 11/17)
Reuters: Tenet Healthcare To Sell 3 South Carolina Hospitals For About $2.4 Bln
Tenet Healthcare (THC.N) said on Friday it would sell three of its hospitals and related operations in South Carolina for about $2.4 billion in cash, in a move aimed at reducing its debt. (11/17)
Modern Healthcare: Health Equity AI Intrigues Digital Health VC Investors
Amid a challenging venture capital market for digital health, AI remains a bright spot and an area of enthusiasm. According to a survey published in October from venture capital company GSR Ventures, 87% of healthcare investors are altering their strategies due to ChatGPT and other generative AI models. Investors see the potential of AI to improve efficiencies in healthcare and increase access for underserved patients. But VCs also recognize that AI can exacerbate issues of health equity. As a result, they want to know if portfolio companies are using unbiased AI datasets. (Perna, 11/17)
Stat: Hospitals Put Tech Spending On A Tight Leash, Raise The Bar For Pilots
Health systems whose budgets were squeezed dry during the pandemic are creeping back into the black, but they’re far from the days when they had cash to blow on flashy tech pilots that might never pan out. (Ravindranath, 11/20)
Modern Healthcare: FTC Will Sue To Block John Muir-Tenet Hospital Deal
The Federal Trade Commission will sue to block John Muir Health’s proposed $143 million acquisition of San Ramon (California) Regional Medical Center, alleging that it would increase costs and lower care quality. In January, Walnut Creek, California-based John Muir signed a definitive agreement to acquire San Ramon Regional from Tenet Healthcare Corp., a majority owner of the hospital also located in the East Bay near San Francisco. (Kacik, 11/17)
Modern Healthcare: UCLA Health Sues Mattel Over Reneged $49M Donation Promise
UCLA Health is suing Mattel Inc. over a $49 million pledge it alleges the toymaker failed to honor. Mattel, the company behind Barbie and Fisher-Price brands, agreed in 2017 to donate $49 million incrementally over 12 years to the Regents of the University of California, on behalf of UCLA Health, and the UCLA Foundation to expand care at UCLA's children's hospital in west Los Angeles. Mattel paid $2 million in 2017, and the health system renamed the facility UCLA Mattel Children’s Hospital, according to a lawsuit filed Nov. 9 by UCLA in the Superior Court of California. (Hudson, 11/17)
Also —
Bloomberg: AstraZeneca Starts Health-Tech Business, Evinova, To Add AI To Pharma
AstraZeneca Plc has formed a health-technology unit that strives to bring digital solutions and artificial intelligence to clinical trials. The unit, dubbed Evinova, will reduce the cost and time of clinical trials, Astra said Monday. Parexel and Fortrea, two of the world’s biggest drug-testers, have agreed to work with Evinova. (Mulier, 11/20)
Axios: Exclusive: CISA Rolls Out Guidance To Beef Up Health Care Sector Cybersecurity
The Cybersecurity and Infrastructure Security Agency is rolling out a new plan for health care organizations and hospitals trying to fend off an influx of ransomware and nation-state cyberattacks, an agency official first shared with Axios. Hospitals and health care organizations have become prime targets for ransomware hackers who are eager to steal sensitive patient information and shut down critical services in order to get a payout. (Sabin, 11/17)
Stat: Cedars-Sinai Essentially Gives The Insured 84% Off Its List Prices
Hospitals’ list prices for surgeries, therapies, and other procedures always come with massive discounts. Financial documents at a prominent hospital system in Los Angeles show just how large those discounts are — and how raw of a deal uninsured patients could be getting. (Herman, 11/20)
Bloomberg: Shortage Of Generic Vyvanse For ADHD Worsening On US Limits, Group Says
A US shortage of the new generic version of Vyvanse, an ADHD medication, is due in part to federal limits on production, according to an industry group representing generic drug makers. Manufacturers haven’t been able to secure enough raw material “to launch their products at full commercial scale,” according to a letter from the Association for Accessible Medicines addressed to the Drug Enforcement Administration, which sets the limits on production that the industry must follow. (Swetlitz, 11/17)
