Morning Briefing
Summaries of health policy coverage from major news organizations
Drugmakers Push Boundaries On Challenging 340B Discounts
Modern Healthcare: Drugmakers Crack Down On 340B Discounts, Demand Data
Drugmakers in recent weeks have taken increasingly aggressive actions to crack down on 340B drug discounts through contract pharmacies and demand more data from healthcare providers. Pharmaceutical companies appear to be testing how far they can challenge subregulatory guidance issued by the Health Resources and Services Administration that allows 340B providers to receive discounts for working with multiple contract pharmacies. If the trend continues at its current clip, the limitations on discounts could have a big impact on some covered entities' finances. (Cohrs, 8/19)
In financial news —
Stat: Johnson and Johnson To Buy Momenta Pharma To Bolster Autoimmune Disease Pipeline
Health care giant Johnson & Johnson said Wednesday that it is acquiring Momenta Pharmaceuticals, gaining access to a promising experimental treatment for autoimmune diseases. Momenta is being acquired for $52.50 per share, or a 73% premium to Tuesday’s closing price. The all-cash deal values the company at $6.5 billion. (Feuerstein, 8/19)
Modern Healthcare: Digital Diagnostics Acquires AI Company 3Derm Systems
Artificial-intelligence diagnostics company Digital Diagnostics said Tuesday it has purchased 3Derm Systems, a move to expand its technology to detect more illnesses. Digital Diagnostics, formerly known as IDx, scored Food and Drug Administration approval for its medical device that uses AI to detect diabetic retinopathy without input from a doctor. It's the first such device with that approval. Now, the company hopes to develop 3Derm's AI system, which detect skin cancer. (Cohen, 8/19)
Stat: Turning Point Releases Positive Data For Targeted Cancer Drug
Turning Point Therapeutics, a San Diego developer of targeted cancer drugs, released positive data Wednesday on repotrectinib, its treatment for non-small cell lung cancer and other cancers, and said the Food and Drug Administration might allow it to file for approval sooner than previously expected. Repotrectinib is a medicine targeted against cancers driven by a rare mutation in which DNA becomes rearranged, called a Ros1-fusion. (Herper, 8/19)
Stat: Otsuka Approved To Buy Bankrupt Smart-Pill Maker Proteus’ Assets
The Japanese drug maker Otsuka has been approved to purchase the assets of bankrupt smart pill maker Proteus Digital Health for $15 million — capping off a spectacular fall for Proteus, which raised close to $500 million and soared to a valuation of $1.5 billion on the promise that its sensor technology could revolutionize how medications are taken and tracked. The sale, approved on Wednesday by a federal bankruptcy court judge in Delaware after a three-day hearing, overcame the fierce objections of a group of Proteus investors that included the pharma giant Novartis. (Robbins, 8/19)
