Morning Briefing
Summaries of health policy coverage from major news organizations
Staggering Drug Price Hikes As High As 1,200% Driven By Hedge Funds, Activist Group Says
CNN Money: Sticker Shock: Drugs With Price Hikes Of Up To 1,200%
A new analysis by an activist group called Hedge Clippers shows that at least 19 other drugs have experienced stunning price hikes of between 300% and 1,200% in just the past two years. In most of the cases, the drugs are produced by firms that have either been backed by hedge funds, private-equity firms or venture capital firms. (Egan, 10/20)
NBC News: Drug Firms Stave Off Generics, Costing Consumers Billions, Critics Say
While sharp overnight increases in the cost of prescription drugs have recently dominated headlines, critics say another pharmaceutical industry practice that has added billions of dollars to the price that consumers pay for their medicines continues unabated. Known as "reverse settlement payments," or "pay-to-delay" deals, the financial arrangements are a unique but common practice in the pharmaceutical industry. Essentially, they allow drug manufacturers in some instances to pay competitors not to manufacture generic versions of their products, thereby ensuring that they maintain patent protection for as long as possible. (Thompson, 10/21)
In other pharmaceutical news -
The Boston Globe: Rough Week Puts Biotech Boom In Perspective
In the booming biotech world, it’s easy to forget that there are speed bumps. ... “You’re going to see more of these setbacks,” said former venture capitalist Jonathan J. Fleming, president of the Network for Excellence in Health Innovation, a Cambridge health policy institute. “We’ve had an investment boom since 2013 that has seen 138 new biotech companies going public. Just the law of averages tells you that all their drugs can’t work.” (Weisman, 10/21)
