Centene’s Drug Pricing Battles Force It To Restructure PBM Business
The drugmaker said it will restructure its pharmacy-benefits management business following claims by several states it had inflated drug costs and cost taxpayers money. Texas' $290 million opioid settlement and Rafael Pharma's pancreatic cancer trial are also in the news.
Centene To Restructure Drug-Benefit Business After Legal Battles Over Pricing
Centene Corp. said it will restructure its pharmacy-benefits management business following claims by several states that it had inflated drug costs at taxpayers’ expense. The health insurer recorded a $1.1 billion accounting charge earlier this year in anticipation of resolving disputes with states that alleged that the company overcharged their Medicaid programs for prescription drugs. On Tuesday, Centene said it will seek new proposals from outside companies to help it manage what it expects to be more than $30 billion in annual drug spending in the years to come. The company’s existing contract for pharmacy services runs out at the end of 2023. (Tozzi, 10/27)
Texas Reaches $290 Million Settlement With Opioid Manufacturer Johnson & Johnson
The state of Texas has settled with drug manufacturer Johnson & Johnson for its role in the nationwide opioid epidemic, with the company agreeing to pay $290 million to partly fund addiction recovery efforts in cities and counties, Attorney General Ken Paxton announced Tuesday. About $3.9 million will go directly to Harris County if approved by commissioners, according to Harris County Attorney Christian Menefee. (Gill, 10/26)
6 Things To Know Before Rafael Pharma's Pancreatic Cancer Drug Readout
Pancreatic cancer is hard to detect early and notoriously resistant to treatment, making it the deadliest type of major cancer. Rafael Pharmaceuticals, a small drug maker backed by a telecom billionaire, hopes to deliver better news for patients and investors with the readout of a large clinical trial within the next two months. It’s an inordinately risky challenge for Rafael, but with a giant payoff if successful. Here are six things to know about the company and its drug, devimistat, before Phase 3 pancreatic cancer study results are announced. (Feuerstein, 10/27)