Morning Briefing
Summaries of health policy coverage from major news organizations
Perspectives: Importing Drugs Isn't The 'Nuclear Option' The Industry Paints It To Be
The New York Times: How To Stop Drug Price Gouging
If Mr. Trump wishes to show he’s serious about his populist promise, the place to start is by declaring war on the price gougers. The key power is found in the “import relief” law — an important yet unused provision of the Medicare Modernization Act of 2003 that empowers the Food and Drug Administration to allow drug imports whenever they are deemed safe and capable of saving Americans money. The savings in the price-gouging cases would be significant. Daraprim, the antiparasitic drug whose price was raised by Mr. Shkreli to nearly $750 per pill, sells for a little more than $2 overseas. The cancer drug Cosmegen is priced at $1,400 or more per injection here, as opposed to about $20 to $30 overseas. The remedy is simple: The government can create a means for pharmacies to get supplies from trusted nations overseas at much lower prices. Doing this would not only save Americans a lot of money but also deflate the incentive to engage in abusive pricing in the first place. (Tim Wu, 4/20)
RealClear Health: Does Crime Pay When It Comes To Fake Drugs?
The purpose of penalties such as fines and jail time is to address and correct perpetrators’ bad behaviors, whilst signaling to others that illicit behavior will not be tolerated – “crime will not pay.” However, when it comes to the business of counterfeit prescription medications, law enforcement falls far short as an effective deterrent. (Steve Pociask, 4/26)
Bloomberg: Express Scripts' Anthem Loss Goes Deeper Than Numbers
In losing Anthem Inc. as a client, Express Scripts Holding Co. is surrendering more than just its biggest customer and 18 percent of its revenue. Its very identity is now at risk. The PBM on Monday night said it expected to lose Anthem's business at the end of 2019 after a long, bitter pricing dispute. Through Monday's trading, Express Scripts shares had fallen more than 20 percent since the Anthem squabble began in December 2015 -- so this news was somewhat priced into the stock. (Max Nisen, 4/25)
CNN: How To Cut The Price Of Prescription Drugs
Reducing the cost of medical care, rather than health insurance, is so often underemphasized or even absent from discussions of reforming the health care system. And yet lowering costs of medical care is essential for broadening access to care, reducing insurance premiums and ultimately ensuring better health. (Atlas, 4/20)
Bloomberg: Generic Drug Woes Aren't Going Away
Cardinal Health Inc. on Tuesday announced a $6.1 billion deal for a Medtronic PLC medical supplies unit. But this deal was overshadowed by the gruesome earnings forecast Cardinal released at the same time. The company warned 2017 earnings will be at the low end of its already lowered guidance and said 2018 would miss Wall Street expectations. Cardinal shares fell 12 percent on Tuesday.That's bad news for the drug distributor and its peers McKesson Corp. and AmerisourceBergen Corp. as they enter earnings season. It also confirms a multi-year price crunch in generic and specialty drugs may not be going anywhere soon -- just as the market for such assets appears to be getting hot. Buyer beware. (Max Nisen, 4/19)
East Bay Times: Pass Bill To Sunshine Prescription Drugs Prices
Pharmaceutical companies need an intervention to address their addiction to prescription drug price gouging. Californians should demand that Big Pharma be more transparent about drug-pricing habits and put an end to pharmaceutical industry practices that state Sen. Ed Hernandez says “literally rape the American people at the expense of the taxpayer.” (4/24)
The Oregonian: Oregon Must Address Drug Costs And Transparency
The rising cost of prescription drugs in Oregon should worry us all. I often hear from neighbors and constituents about the real challenges of out-of-pocket costs for prescription medicines. Given that the clock usually resets for a patient's insurance deductible responsibility in January, this time of year can be especially difficult for Oregon families who depend on expensive prescription drug treatments. (Bill Kennemer, 4/21)
Bloomberg: An Alcon Sale Will Take A Bargain Price
Novartis AG's consideration of a spinoff or sale of its Alcon eye-care business just got serious; Bloomberg News reported Thursday the company has hired Bank of America to review its options. It's eminently reasonable for the company to consider it, as my colleague Chris Hughes and I wrote when the company aired the notion in January. The declining business has become more trouble than it's worth. And Novartis could use the money to supplement its growing generics business, or to bolster its all-important pharma division as its best-selling medicine Gleevec faces generic competition. (Max Nisen, 4/20)
