Facing Public Anger Over Fatalities From Insulin Rationing, Express Scripts To Cap Prices At $25 A Month For Some Patients
Under the new plan, employers who cover their workers through Cigna and Express Scripts can opt into the program, and the extra costs will be picked up by the three drugmakers that sell insulin — Eli Lilly, Novo Nordisk and Sanofi. Cigna and Express Scripts said the average out-of-pocket cost for consumers under their existing plans was $41.50 for a 30-day supply of insulin.
The New York Times:
Express Scripts Offers Diabetes Patients A $25 Cap For Monthly Insulin
Consumers whose drug benefits are managed by Express Scripts could see their out-of-pocket costs for insulin limited to $25 a month under a plan announced on Wednesday. The move is aimed at addressing rising anger over the cost of the lifesaving product, whose list price has skyrocketed in recent years. Express Scripts said about 700,000 people filed a claim for insulin last year through its Cigna or Express Scripts plans. The average monthly savings for those whose employers opted into the plan would be about $16 a month. (Thomas, 4/3)
The Wall Street Journal:
Express Scripts To Offer A Way To Lower Insulin Costs
The cap, if picked up by employers, would save the average patient about $15 a month, or 40%, and even more for patients covered under a typical high-deductible health plan, according to Express Scripts. Patients could start benefiting from the lower out-of-pocket costs in the next few months, depending on when employers decide to opt-in, a company spokesman said. The offering will include all insulin types, including those made by Eli Lilly & Co., Novo Nordisk AS and Sanofi SA, three of the biggest makers of diabetes drugs. Express Scripts and Cigna insure about 700,000 patients taking insulin, said Glen Stettin, chief innovation officer at Express Scripts. (Walker, 4/3)
The Hill:
Cigna Says It Will Cap Insulin Costs At $25 A Month For Some Patients
"We are confident that our new program will remove cost as a barrier for people in participating plans who need insulin," said Steve Miller, Cigna's executive vice president and chief clinical officer. "Better care and better outcomes are rooted in greater choice, affordability, and access, and we can bring all of these to people with the greatest needs." (Hellmann, 4/3)
NPR:
Express Scripts Takes Steps To Cut Insulin's Price To Patients
Insulin has become a major focus. A Minnesota man died last year, according to his mother, when he tried to ration his insulin because he couldn't afford the $1,300 monthly cost. Though the drug has been in use for more than a century, its price in the U.S. is 10 times higher than it was 20 years ago, according to a report by the House of Representatives released last week. (Kodjak, 4/3)
Modern Healthcare:
Cigna To Cap Insulin Cost Amid Federal Drug Pricing Scrutiny
A January report from the Health Care Cost Institute found that Type 1 diabetes costs alone rose from $12,467 in 2012 to $18,494 in 2016. For patients, the average annual out-of-pocket spending for insulin jumped from $2,864 to $5,705 in that same time frame, according to the study. More than 1.2 million Americans live with Type 1 diabetes, according to the American Diabetes Association. Type 1 patients do not make insulin and need several doses a day. But there are millions of others with Type 2 diabetes who may also need insulin. (Livingston, 4/3)
Prescription Drug Watch: For news on rising drug costs, check out our weekly roundup of news coverage and perspectives of the issue.
In other pharmaceutical news —
The Wall Street Journal:
Sorrento Therapeutics Sues Billionaire Soon-Shiong Over Development Of Cancer Drug
Sorrento Therapeutics Inc. alleges billionaire Patrick Soon-Shiong and one of his companies stopped development of an experimental cancer drug because its success would hurt sales of a rival drug sold by Celgene Corp. CELG 0.44% that Dr. Soon-Shiong invented, according to a civil complaint filed in Los Angeles Superior Court. Sorrento sold the cancer drug Cynviloq to Dr. Soon-Shiong’s NantPharma LLC in a deal valued at up to $1.3 billion in 2015. Sorrento received more than $90 million in cash, with the remaining funds tied to regulatory and sales milestones if the drug received regulatory approval. (Hopkins, 4/3)
Los Angeles Times:
Sorrento Therapeutics Sues Soon-Shiong, Alleging It Was Shortchanged In Cancer Drug Sale
In the arbitration case, the biotech firm charges that Soon-Shiong purchased and then sought to kill Sorrento’s experimental drug, Cynviloq, before it could reach market. The drug candidate was lauded as a next-generation spin on Abraxane, the anti-cancer drug Soon-Shiong sold to Celgene for $2.9 billion in 2010. Soon-Shiong later “orchestrated a secret, illegal transaction” to recoup the funds he paid for Cynviloq, according to the civil case. In an emailed statement, Soon-Shiong denied the allegations. (Van Grove, 4/3)
Stat:
A Drug Maker Accuses Soon-Shiong Of A 'Catch-And-Kill' Scheme
The lawsuit is only the latest in a long-running series of skirmishes involving Soon-Shiong. The billionaire, who owns the Los Angeles Times, has generated controversy over moves made by his biotech companies and his philanthropy. In one high-profile case, Cher alleged she was duped into selling her shares in a small biotech called Altor BioSciene to Soon-Shiong at a fraction of their value. A $12 million gift the University of Utah received from him in 2014 advanced medical research at the university, but the contract was worded in such a way that most of the money Soon-Shiong donated ended up coming back to his company to pay for the genetic sequencing required to carry out that research, bringing him commercial benefit. (Silverman, 4/3)
Bloomberg:
Blink Health’s Plan To Shake Up The Online Drug Market Got Messy
Six years ago, the Yale-educated Chaiken brothers, Geoffrey and Matthew, had an audacious idea: Upend the $333 billion U.S. prescription drug market by selling medicines online at big discounts and create a health-care startup that could stand alongside the giants of tech. One pitch included a slide that put their ambitions in the same league as Uber and Amazon. It hasn’t worked out that way so far. Their company, Blink Health, has snared more than $165 million in venture capital, including from former Morgan Stanley Chairman John Mack. But the brothers and their startup have been entangled in lawsuits and shadowed by deals that saw industry partners turn from friend to foe, competition from two defecting employees, a threat from Amazon itself and no end of bad blood along the way. (Langreth, 4/4)
