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Morning Briefing

Summaries of health policy coverage from major news organizations

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Monday, Dec 10 2018

Full Issue

How An Antitrust Lawsuit Exploded Into A Massive Investigation Of Generic Drug Companies' Alleged Price-Fixing

The unfolding case is rattling an industry that has been portrayed as a savior to the high drug pricing problem. “This is most likely the largest cartel in the history of the United States,” said Joseph Nielsen, an assistant attorney general and antitrust investigator in Connecticut who has been a leader in the probe. He cited the volume of companies and drugs involved in the schemes. In other pharmaceutical news: shingles vaccine shortage, overcharging Medicaid for drugs, and a new CEO at Gilead.

The Washington Post: Generic Drug Price-Fixing Investigation Expands To 300 Drugs And 16 Companies

Executives at more than a dozen generic-drug companies had a form of shorthand to describe how they conducted business, insider lingo worked out over steak dinners, cocktail receptions and rounds of golf. The “sandbox,” according to investigators, was the market for generic prescription drugs, where everyone was expected to play nice. “Fair share” described dividing up the sales pie to ensure that each company reaped continued profits. “Trashing the market” was used when a competitor ignored these unwritten rules and sold drugs for less than agreed-upon prices. (Rowland, 12/9)

The Washington Post: Shingles Vaccine: Shingrix Shortage Worsens As Demand Soars

A national shortage of a new vaccine to protect against the painful rash known as shingles is worsening, even as the manufacturer announced plans this week to boost deliveries. Demand for the two-dose Shingrix vaccine has skyrocketed since it became broadly available in the United States in the spring, say pharmacists. The new vaccine provides much greater protection than an older, single-shot vaccine from a disease that affects 1 in 3 adults and can cause debilitating nerve pain that can last months, or even years. Demand is also surging because federal health officials recommended it last year for healthy adults at age 50 – a decade earlier than previous recommendations. (Sun, 12/7)

WBUR: The Scramble For Shingrix: What To Know About The Shingles Vaccine Shortage

The Food and Drug Administration approved Shingrix late last year, and in January, the CDC recommended that adults 50 or older get the vaccine. For years, public health officials struggled to get people vaccinated with Zostavax, so similar struggles were expected with Shingrix.But by May, the proverbial floodgates were open, and it was apparent to GlaxoSmithKline that demand was far outpacing supply. (Wasser, 12/7)

The Hill: House Set To Vote On Bill Cracking Down On Drug Companies Overcharging Medicaid

The House is expected to vote next week on a bill to crack down on drug companies that overcharge the government, according to two House aides. The bipartisan bill is aimed at stopping a repeat of the actions from Mylan, the maker of EpiPen, which made headlines last year for overcharging the Medicaid program for its commonly used product by as much as $1.27 billion over 10 years. (Sullivan, 12/7)

The Wall Street Journal: Roche Executive Daniel O’Day Is Named Gilead CEO

Gilead Sciences Inc. has named industry veteran Daniel O’Day to take the helm and help the drug company revive sales and recover from a disappointing deal. Mr. O’Day, whose hiring was announced early Monday, will become Gilead CEO after a long career at Switzerland’s Roche Holding AG, most recently running its pharmaceuticals group. In the role, Mr. O’Day oversaw successful launches of several new cancer and other drugs and turned the business into a top industry performer. (Rockoff and Walker, 12/10)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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