Morning Briefing
Summaries of health policy coverage from major news organizations
Perspectives: States Should Be Able To Demand Fair Price On What They Pay For Drugs
Bloomberg: Medicaid Is Right To Demand Lower Drug Prices
Last week, as President Donald Trump delayed announcing his plan to bring down high drug prices, about a dozen physicians, pharmacists, actuaries and economists in Albany, New York, tried to make a difference. The state Medicaid program's Drug Utilization Review Board voted 10-0 to lower the price New York would pay for Orkambi, Vertex Pharmaceuticals' cystic fibrosis drug, to $83,000 per year, from $250,000. (Peter B. Bach, 5/1)
The Hill: A Supreme Court Victory For Lowering Drug Prices
A recent Supreme Court decision on patents — Oil States v. Greene’s Energy Group — marks an understated victory, with far-reaching consequences that will positively impact families and communities across America. This case has deep implications for basic economic fairness, with the judiciary recognizing the importance of keeping critical checks in systems that have become far too imbalanced. In the national media, this case is being held up as a victory for Silicon Valley and the wealthy tech elites. Perhaps this makes sense: The decision handed down April 24 preserves a process for disputing and overturning unmerited patents, helping curb the glut of patent trolls polluting the industry. But this is not just a victory for the ensconced Palo Alto bubble — working families are silent winners of this week’s Supreme Court decision. (Priti Krishtel, 4/28)
Forbes: As Specialty Drugs Gain Share, Trump Looks To Curb Prices
The share specialty drugs have of total U.S. pharmaceutical sales is hurtling toward 50% just as the Donald Trump White House prepares next week to unveil proposals to curtail the nation’s tab for prescription drugs. Specialty drugs as a percent of U.S. pharmaceutical sales are already at 40% , but new data Avalere Health released Tuesday at the annual Asembia Specialty Pharmacy Summit shows that is only expected to grow. Data from Avalere, a health research and consulting firm, shows 50% of all newly approved drugs in 2015 alone “were considered specialty” and another 900 specialty drugs are currently in development. (Bruce Japsen, 5/1)
Bloomberg: Merck’s Dangerous Keytruda Success
Is it possible for things to go too well for a drugmaker’s most important franchise? That’s an important question for Merck & Co. Inc. It announced first-quarter earnings Tuesday, and immune-boosting cancer drug Keytruda was the star. The drug’s sales more than doubled from the same period last year, and helped prompt Merck to boost its full-year earnings and sales guidance. But Keytruda’s success has convinced Merck to commit heavily to the medicine, to the risky exclusion of other efforts. (Max Nisen, 5/1)
Stat: Breakthrough Therapy Label For Promising Cancer Drugs Is Good For Patients
One exciting component of the Food and Drug Administration Safety and Innovation Act was the creation of the breakthrough therapy designation. It allows an all-hands-on-deck approach at the FDA to determine the best path forward when the early clinical promise of a drug is so significant and meaningful beyond existing therapies — or lack of other meaningful therapies — for serious or life-threatening illnesses. Although the validity of the breakthrough designation was questioned recently in a tone-deaf article in the New England Journal of Medicine, this designation has provided patients with tremendous benefit since it was passed into law in 2012. (Jeff Allen, 4/27)
Bloomberg: Allergan May Need More Than A Facelift
In just about two years, Allergan PLC has gone from a pharma darling on the verge of a massively lucrative Pfizer Inc. buyout to something of a pariah.Its stock has fallen 38 percent in the past nine months. Shareholders are reportedly recruiting activists. On its first-quarter earnings call on Monday, Allergan said it is in the midst of an “urgent” strategic review. But it also made it clear it doesn’t think the company needs a reinvention. It shouldn’t be so sure. (Max Nisen, 4/30)
Bloomberg: AbbVie Must Escape The Shadow Of Humira's Decline
There’s a shadow hanging over AbbVie Inc., even on days when it shines.The maker of the blockbuster inflammation drug Humira is doing great by many metrics, thanks to that medicine’s success. AbbVie released first-quarter results on Thursday that beat analyst earnings and revenue expectations and raised its full-year EPS guidance. Adjusted earnings grew a stunning 46 percent from the same period last year. Shares jumped in early trading, but are still down 22 percent from this year’s highs. Investors still have plenty of reasons to wonder how long the party will last. (Max Nisen, 4/26)
