Morning Briefing
Summaries of health policy coverage from major news organizations
Prosecutors Investigate Valeant's Link To Mail-Order-Pharmacy For Possible Fraud
The Wall Street Journal: Valeant Under Criminal Investigation
Federal prosecutors are investigating whether Valeant Pharmaceuticals International Inc. defrauded insurers by shrouding its ties to a mail-order pharmacy that boosted sales of its drugs, people familiar with the matter said. The lawyers, in the U.S. attorney’s office in Manhattan, are pursuing an unusual legal theory, previously unreported, that Valeant and a closely linked mail-order-pharmacy, Philidor Rx Services LLC, allegedly defrauded insurers by hiding their close relationship, the people familiar with the matter said. (McNish and Matthews, 8/10)
In other pharmaceutical news, the Food and Drug Administration OKs an anti-nausea medication and Eli Lilly stumbles with cancer drug —
The Wall Street Journal: FDA Approves Heron Therapeutics Anti-Nausea Drug Sustol
Heron Therapeutics Inc. shares rose as Sustol, the biotechnology company’s extended-release version of the chemotherapy anti-nausea drug granisetron, received U.S. Food and Drug Administration approval. The Redwood City, Calif., company’s shares, down 32% in the past year, rose 6.3%, to $21.12, in early trading. Leerink analysts said the approval of Sustol ends a long saga with the FDA and its review of the injectable therapy. (Stynes, 8/10)
The Wall Street Journal: Eli Lilly’s Investigational Cancer Drug Hits Snag In Breast Cancer Trial
Eli Lilly & Co. said Wednesday its investigational cancer-fighting drug failed to meet efficacy criteria in an interim analysis of a phase-3 trial for treatment of breast cancer. Shares slipped 1.8% to $80.00 in premarket trading. Eli Lilly stock had climbed 6% in the past three months through Tuesday’s close. The pharmaceutical manufacturer said the trial of the drug, Abemaciclib, will continue into the first half of 2017, at which point a final analysis of its primary endpoint—progression-free survival—will be disclosed, as well as overall survival and safety data. (Jamerson, 8/10)
Meanwhile, in California, pharmaceutical companies pour money to fight against a drug pricing ballot initiative —
Los Angeles Times: The Money Is Starting To Roll In On California's 17 Ballot Propositions. A Lot Of It.
The largest single block of campaign cash for November propositions is from the pharmaceutical industry in hopes of defeating Proposition 61. Drug companies, according to campaign records, have contributed more than $50 million this year. Of that amount, more than $35 million have been reported since July 1. Proposition 61 would ban state agencies from paying more for prescription drugs than the lowest price paid by the U.S. Department of Veterans Affairs. (Myers and Bollag, 8/11)
