Governors Propose Methods To Curb High Drug Prices, Ranging From Seizing Patents To Subscription Programs

Stat: National Governors Association Promotes Ideas To Lower Drug Costs
As cash-strapped states across America struggle with their drug spending, the National Governors Association has suggested several ways to address the problem, from bulk purchasing and alternative payment plans to the use of metrics for assessing the value of medicines. The ideas were released in a long-awaited report by the group, which has sought ideas from economists and public health officials for containing rising prescription drug expenses. The initiative was triggered, in particular, by two events over the past few years: revolutionary but pricey new medicines for combating hepatitis C, and the rising costs of coping with the ongoing opioid crisis. (Silverman, 8/14)

Bloomberg: Generic Drugmakers Struggle Despite U.S. Push For Copycats
Generic drugmakers are being crushed by the very forces that the Trump administration is counting on to drive down prescription costs. While policy makers are betting that opening the market to a deluge of new medicines and reforming the drug supply chain will help contain rising prices, many widely used copycat medications are already seeing their prices fall at such a rapid rate that their makers are struggling to keep their heads above water. (Koons, 8/9)

Axios: Wall Street Still Isn't Scared Of Trump's Drug Price Plan
Wall Street still mostly believes President Trump's drug pricing blueprint doesn't present any immediate, large-scale disruptions to the industry as the Trump administration remains focused on changing things like rebates instead lowering net prices. (Herman, 8/13)

PBS NewsHour: Do Prescription Drug Middlemen Help Keep Prices High?
Americans pay more for prescription drugs than any country in the world, and the pharmaceutical industry earns billions in profits each year. Critics blame pharmacy benefit managers, or PBMs, for a portion of those high costs through their role as middlemen between insurance plans, drug makers and pharmacies—but PBMs say they save consumers money. (Thompson and Rothman, 8/11)

Stat: Ohio Medicaid Cancels Contracts With Two Big PBMs Over 'Spread' Pricing 
In an unexpected move, Ohio officials are immediately ending contracts with two of the largest pharmacy benefit managers over pricing practices that cost the state tens of millions of dollars. The decision comes amid controversy over the fees that PBMs pay pharmacies for medicines and what they bill back to the Ohio Medicaid program, a practice known as spread pricing. A report commissioned by state officials found that two PBMs — CVS Caremark (CVS) and OptumRx — reaped more than $223 million by working on behalf of state Medicaid plans during a recent 12-month period. (Silverman, 8/14)

Axios: When Combining Aleve And Nexium Equals A High Drug Price
Common medications like ibuprofen or naproxen don't cost a lot on their own. But in several instances, drug manufacturers blend those kinds of medicines into one tablet and then sell the combined drug for hundreds or even thousands of dollars. (Herman, 8/13)

San Antonio Press-Express: The Real Reason Texans Are Grappling With High Drug Costs
Pharmacy benefit managers, or PBMs, the obscure firms that administer prescription drug plans for insurers, are milking the system. Their unique perch between drug companies and pharmacies keeps them out of the spotlight — and has enabled them to boost their profit margins by saddling patients with ever-rising pharmacy bills. (Bearden, 8/12)

Kaiser Health News: Pharmacy-Made Pain Creams Flagged On Fears Of Medicare Fraud And Risk
Medicare pays hundreds of millions of dollars each year for prescription creams, gels and lotions made-to-order by pharmacies — mainly as pain treatments. But a new report finds that officials are concerned about possible fraud and patient safety risks from products made at nearly a quarter of the pharmacies that fill the bulk of those prescriptions. “Although some of this billing may be legitimate, all of these pharmacies warrant further scrutiny,” concludes the report from the Office of the Inspector General for the Department of Health and Human Services. (Appleby, 8/9)

Reuters: Biogen's Pricey Muscle Drug Spinraza Too Costly For Britain
Biogen's muscle disease treatment Spinraza has been deemed too expensive for use on Britain's state-run health service, even after a price discount offered by the U.S. drugmaker. Spinraza, which has a U.S. list price of $750,000 in the first year of treatment, is a big money-spinner in Biogen's home market. But Britain's healthcare cost agency NICE said on Tuesday it could not recommend it as a cost effective treatment. (8/13)

Stat: Gilead Patent For Its Hepatitis C Drug Is Invalidated By Chinese Authorities
In a setback for Gilead Sciences (GILD), Chinese authorities have rejected a key patent for its Sovaldi hepatitis C medicine, opening the door to generic versions of the groundbreaking pill a few years sooner than might have occurred otherwise. The decision emerges from an ongoing effort by different advocacy groups to challenge Gilead patents for its hepatitis C medicines around the world in hopes of widening access. Although Gilead’s hepatitis C drugs have revolutionized treatment, they have also strained budgets, especially among cash-strapped governments with large numbers of citizens who are infected with the virus. (Silverman, 8/13)