Morning Briefing
Summaries of health policy coverage from major news organizations
Silicon Chip Shortage Pushes Medical Tech Makers To Front Of Queue
The Wall Street Journal: Pacemaker, Ultrasound Companies Seek Priority Amid Chip Shortage
In the race to secure computer chips amid a global shortage, medical device makers say they have found their ace card: their products save lives. While only a tiny fraction of the world’s chips end up in medical equipment compared with cars and consumer electronics, the components are key to a range of vital devices like MRI machines, pacemakers and blood-sugar monitors for diabetes. To win priority over larger buyers, medical device makers say their most effective tactic is to raise awareness with executives at chip suppliers. (Roland, 10/3)
In other pharmaceutical and biotech industry news —
Stat: Generic Drug Makers To Pay $450 Million To Settle Price Fixing Charges
Three generic drug makers agreed to pay nearly $450 million to resolve civil allegations that they conspired to fix prices for numerous medications, which caused U.S. federal government health care programs and their beneficiaries to overpay for the treatments. In each instance, the companies — the Sandoz unit at Novartis (NVS), Taro Pharmaceuticals and Apotex — admitted to working with rivals to set prices and supplies, and allocate customers for different medicines between 2013 and 2015, according to the U.S. Department of Justice. The drugs included treatments for high cholesterol, pain, fungal infections, and skin infections, among other maladies. (Silverman, 10/1)
Stat: Pfizer Loses A Lawsuit Over Use Of Patient Copay Assistance Programs
In a setback to the pharmaceutical industry, a federal judge ruled that programs Pfizer (PFE) wanted to launch to provide copay assistance to Medicare patients would likely violate kickback laws, a controversial notion that has caused numerous drug makers to pay large fines. The ruling came in a closely watched lawsuit Pfizer filed in July 2020 that argued rules prohibiting companies from funding programs — either directly or indirectly — were unconstitutional. In one, Pfizer sought to provide direct financial assistance to Medicare beneficiaries using a heart failure drug. The other program would have used a charity to run a program to cover patient copays. (Silverman, 10/3)
The Washington Post: Major Pharmacies Face First Federal Trial Over Role In Opioid Crisis
In a span of eight years, 10 pharmacies dispensed nearly 49 million prescription pain pills in two counties near Cleveland — enough to provide about a dozen doses to each man, woman and child who lived there every 12 months. Now Lake and Trumbull counties are set to face off against four of the nation’s largest chain pharmacies in a federal trial that could serve as a litmus test for thousands of cities and counties looking to hold them accountable for their role in the nation’s opioid crisis. (Kornfield, 10/3)
Anchorage Daily News: More Counterfeit Painkillers Are Showing Up In Anchorage, Raising Risks Of Overdose
The people trading in used needles at Anchorage’s lone syringe exchange are more worried than ever about dying from a drug overdose. The nonprofit’s staff hear about it anecdotally in short conversations with clients returning old needles for clean new ones, and in the frequency of requests for overdose-reversing medication. “Guys got Narcan?” asked one man, who later declined to speak with a reporter, as did several others on a recent weekday afternoon. (Hughes, 10/3)
In updates on the Theranos trial —
CNN: The Elizabeth Holmes Trial Ended Its Fourth Week. Here's What We Learned
The trial of Theranos founder Elizabeth Holmes concluded its fourth week on Friday, with the lengthiest witness testimony of the trial so far. That testimony has come from former Theranos lab director Adam Rosendorff, who has been on the stand for four days and will continue his testimony Tuesday. Rosendorff said on the stand that he "felt pressured to vouch for tests that I did not have confidence in" and that he "felt obligated from a moral and ethical perspective" to tell the public what was happening at the company. (Iyengar and O'Brien, 10/2)
