Morning Briefing
Summaries of health policy coverage from major news organizations
Beyond The Politics And Finger-Pointing: The Day-To-Day Reality Of Living With High Drug Costs
ProPublica and The New York Times: The Price They Pay
Drug makers have raised prices on treatments for life-threatening or chronic conditions like multiple sclerosis, diabetes and cancer. In turn, insurers have shifted more of those costs onto consumers. Saddled with high deductibles and other out-of-pocket costs that expose them to a drug’s rising list price, many people are paying thousands of dollars a month merely to survive. For more than a year, President Donald Trump and Democrats in Congress have promised to take action on high drug prices, but despite a flurry of proposals, little has changed. These are the stories of Americans living daily with the reality of high-cost drugs. And there are millions of others just like them. (Thomas and Ornstein, 3/5)
NPR: Probe Into Generic Drug Price Fixing Set To Widen
Forty-five states and the Department of Justice are claiming that generic drug prices are fixed, and the alleged collusion may have cost U.S. business and consumers more than $1 billion. In their complaint, prosecutors say that when pharmacies asked drug makers for their lowest price, the manufactures would rig the bidding process. (Lane, 3/7)
NBC Connecticut: Democrats Take Aim At High Prescription Drug Prices
Prescription drug prices have some state officials fed up and looking for answers. Increased prices years after year on some life-improving drugs have led to a push to force pharmaceutical companies to provide the reasoning for the cost increases. “I think the people of Connecticut would want to know why their drug prices are increasing every time they go to the pharmacy,” said Rep. Sean Scanlon, who rolled out the legislation along with State Comptroller Kevin Lembo, also a Democrat. (Reiss, 3/6)
Stat: Lawmaker Wants Drug Makers To Explain How Tax Law Money Will Be Used
In the wake of changes to the federal tax code, one lawmaker wants to know why so many drug makers are sharing their windfalls with stockholders and not lowering prices. The new tax law, you may recall, slashed the corporate tax rate and made it easier for companies to repatriate overseas cash, making dividends and share buybacks quick and appealing options. And in fact, nine drug makers are spending a combined $50 billion on new share buyback programs, all of which were announced during or after passage of the tax bill, according to a recent tally by Axios. (Silverman, 3/6)
Stat: Oregon Legislature Passes A Drug Price Transparency Bill
You may soon be able to add Oregon to the growing number of states with laws that require drug makers to report and justify price hikes for some medicines. In a bipartisan vote late Friday, the Oregon Senate overwhelmingly passed such a bill, 25-to-4, just a few days after the same legislation was approved by the House. The legislation, called the Prescription Drug Price Transparency Act, now goes to Gov. Kate Brown, who is expected to sign it. (Silverman, 3/5)
Stat: How The 'Right-To-Try' Movement Muscled Its Way Into Washington
Five years ago, the phrase “right to try” wasn’t yet an inkling in the minds of its staunchest advocates. Today, the pithy shorthand for the campaign to get dying patients access to experimental treatments has been slapped on bumper stickers, emblazoned on T-shirts, and uttered by some of the most powerful figures in Washington. ... But the story of the five-year fight over “right to try” actually starts at a small lunch meeting of Republican health care experts in Phoenix. It then winds through more than three dozen state legislatures and into the stately meeting rooms of Capitol Hill, where pharmaceutical company lobbyists, Food and Drug Administration officials, and libertarian leaders are still pushing to shape or even upend the ultimate package. (Mershon, 3/7)
Politico Pro: Patients' Bills May Surge Due To New Insurer Policy On Drug Coupons
Patients with severe, often life-threatening illnesses could see steep and unexpected drug costs in the coming weeks due to an arcane change in the way many insurers handle drug maker discounts. (Demko, 3/2)
Stat: McCaskill Seeks To End Tax Breaks For Consumer Drug Ads
Once again, a congressional lawmaker is introducing legislation that would end the tax break that drug makers can take for advertising medicines to consumers. Called the End Taxpayer Subsidies for Drug Ads Act, the bill reflects concerns that drug makers are spending too much to market high-priced medicines at a time of growing anger over the cost of prescription drugs, according to U.S. Sen. Claire McCaskill (D- Mo.), who introduced the bill. She noted that only the U.S. and New Zealand allow consumer advertising of pharmaceuticals. (Silverman, 3/1)
California Healthline: States Strive To Curb Costs For A Crucial — But Exorbitant — Hemophilia Treatment
The child is well-known in the halls where state bureaucrats oversee health care for millions of Californians — not by name, but by a number: $21 million. His medications alone cost state taxpayers that much in a single year, not including other health care. The boy, whose identity has not been released, was California’s most expensive Medicaid patient in recent years. His case was singled out in a tweet last year by the state’s top health care official to highlight the public insurance program’s extraordinary obligations as a backstop for low-income patients. (Ostrov, 3/5)
Stat: Regeneron Drug Being Kept Out Of Many Patients' Hands By Payers
Shortly before Regeneron Pharmaceuticals won the right last year to sell a new drug for severe eczema, the company’s chief executive promised to price the medicine “responsibly” in order to avoid the anger over high drug prices. At first blush, he appeared to have succeeded – the $37,000 price tag for Dupixent was in line with an evaluation by a closely followed cost-effectiveness watchdog. But a year later, the effort has not produced all of the desired results. Regeneron has, indeed, escaped public criticism for its pricing, which is something of a moral victory for Dr. Len Schleifer, the outspoken chief executive. (Silverman, 3/1)
Stat: Nearly 90 Countries Sidestepped Patents To Bring Down Drug Prices
In 2001, a modified World Trade Organization agreement ushered in a new era of access to medicines by giving countries the right to sidestep drug makers that charged unaffordable prices. But since then, the number of instances in which a country has pursued any of the sanctioned measures was believed to be rather small, especially since the pharmaceutical industry has often raised strenuous objections. (Silverman, 3/5)
Forbes: In Two Months, Biotech Startups Raised More Money Than In All Of 2013
If there are any worries about the future of biotech, don't tell the venture capitalists. Last week, biotechnology firms raised $758 million from VCs and angel investors, according to an analysis by Pitchbook, a data provider that tracks venture and private equity investments. In the year-to-date, venture capitalists have poured $2.8 billion into biotechnology startups. That means that in the first two months of 2018, venture capitalists have invested more in biotechnology firms than they did in all of any year before 2014. (Herper, 3/5)
Reuters: Big Pharma, Big Data-Why Drugmakers Want Your Health Records
Drugmakers are racing to scoop up patient health records and strike deals with technology companies as big data analytics start to unlock a trove of information about how medicines perform in the real world.Studying such real-world evidence offers manufacturers a powerful tool to prove the value of their drugs - something Roche aims to leverage, for example, with last month's $2 billion purchase of Flatiron Health. (Hirschler, 3/1)
The Wall Street Journal: How Missed Red Flags Derailed A Drug Deal
A bombshell revelation seems likely to derail a generic-drugs merger. Investors could have avoided the mess altogether by taking some red flags more seriously.German health-care company Fresenius SE said Monday it was investigating “alleged breaches of [Food and Drug Administration] data integrity requirements” at generics-drug manufacturer Akorn, which Fresenius agreed to purchase last year for $3.7 billion. For their part, Akorn said in a statement that its own investigation “has not found any facts that would result in a material impact on Akorn’s operations” and that the investigation shouldn’t affect the deal’s closing. (Grant, 2/27)
Stat: Novartis Accused Of 'Bullying Tactics' Against Poor Countries
Nearly a dozen advocacy groups began a series of protests against Novartis this week for using “lies, threats and bribes” to pressure developing countries not to pursue measures to widen access to medicines. The groups are targeting Novartis because the drug maker figures prominently in an intensifying effort by the U.S. Trade Representative and pharmaceutical industry trade groups to lean on the Colombian government to revamp its policies toward pricing and patents. (Silverman, 3/2)
Stat: FDA Pressed To Explain Why It Won’t Shed Light On Ebola Drug Decision
The Food and Drug Administration will have to explain to a court this week why it won’t shed more light on an internal decision to allow at least two Americans who contracted Ebola to take a drug that wasn’t yet approved. It’s the latest salvo in a legal case that could have broader implications for the ongoing campaign to pass a federal “right-to-try” law, in which advocates are aiming to help dying patients get access to other drugs the FDA hasn’t yet approved. (Mershon and Swetlitz, 3/5)
