Morning Briefing
Summaries of health policy coverage from major news organizations
Perspectives: Technologies Like Artificial Intelligence Poised To Bring Skyrocketing Drug Prices Down To Earth
Forbes: Drug Prices Are Too Expensive: Here's How Technology Can Fix That
The cost of drug development has skyrocketed, but disruptive technologies can bring it back down to earth. Over the past several decades, drug-development costs have risen significantly, from $250 million per approved drug prior to the 1990s to $403 million in the 2000s and $873 million in 2010 ($1.778 billion if capitalization over the 14-year approval period is accounted for). Costs are distributed across the development cycle, with about one-third in discovery/preclinical development, two-thirds in clinical development and 5% in submission-to-launch. (Gunjan Bhardwag, 4/16)
Bloomberg: Johnson & Johnson Earnings: Fine For Now
Johnson & Johnson is in rarefied air. The world's largest health-care company (at $348 billion in market value, topping Pfizer by more than $130 billion) on Tuesday reported quarterly earnings and revenue that beat analyst estimates -- which has become a routine -- and raised its sales forecast for the year. But for all of its strengths, the company's hefty valuation leaves it little room for error. (Max Nisen, 4/17)
The Washington Examiner: To Bring Down Prescription Prices, Trump Should Make Foreign Governments Pay More For US-Made Drugs
As President Trump seeks to lower drug prices, he should consider introducing an export price floor on foreign drug sales. That course of action would allow U.S. drug manufacturers to earn higher revenue on their foreign sales and thus offset the exorbitant prices they charge U.S. consumers. But an export price floor would also offer a moral market correction.After all, the current U.S. export market for drug sales is neither fair on U.S. consumers nor reflective of free market forces. (Tom Rogan, 4/17)
Hartford Courant: Stabilize Naloxone Prices
ver the last decade, the price of naloxone, a medication used to reverse the effects of opioids and prevent overdoses, has skyrocketed. One naloxone delivery system, Evizo, was priced at $690 in 2014 but is $4,500 today, a price increase of more than 500 percent, which makes it impossible for most Americans to access.In response, Connecticut lawmakers have proposed legislation that could help stabilize the price of this life-saving medication. (Nicholas John and Carrie Wade, 4/16)
Forbes: Novartis CEO: How To Create Cheaper Alternatives To The Most Expensive Drugs
Recently, FDA Commissioner Scott Gottlieb addressed those in attendance at America’s Health Insurance Plans’ (AHIP) National Health Policy Conference. His comments created a lot of visibility around several critical topics, including patient access to innovative treatments, cost-effectiveness, and the role that biosimilars – biologic products that are highly like already-approved and marketed medicines (called reference or originator products) – play in helping deliver access and cost-savings. A report from the Kaiser Family Foundation in 2015 found that 29 of the 50 most expensive drugs by Medicaid spending per prescription are biologics, many of which have faced no competition in the U.S. for more than a decade. (Vas Narasimhan, 4/12)
Bloomberg: Private Equity Shapes Up For A Drugs Duel In Europe
After losing out on one of the biggest leveraged buyouts in recent years, Advent International Corp. is getting its own back. The private equity firm is in exclusive talks to buy Sanofi's European generic drugs business -- almost a year after trying to land German peer Stada Arzneimittel AG and being outbid by Bain and Cinven. (Chris Hughes, 4/17)
