Study Links Delayed Medical Device Recalls To CEOs’ Share Holdings
A new study suggests the percentage of CEO stock ownership in a company correlates with the speed the company issues medical device recalls: perhaps unsurprisingly, more shares equals slower recalls. Also in the news: a shortage of Black Widow spider bite drugs, CVS is reducing expenses, and more.
The Wall Street Journal:
Timing Of Medical-Device Recalls Linked To CEO’s Ownership Stake In The Company
CEO stock ownership might play a role in delays of medical-device recalls. A new study suggests that there is a correlation between the percentage of shares a company’s chief executive has and the speed at which the company initiates recalls of medical devices. In essence, the more shares, the slower the recall. (Bhattacharyya, 7/30)
Axios:
Public Health Crises Collide In New Chemical Regulation
Medical device makers and health care providers want to move away from using a likely carcinogenic gas to sterilize devices — but they say it's not that simple. Because eliminating ethylene oxide is expected to take so long, federal regulators must weigh the risks and benefits of using the chemical, also known as EtO, at its current scale — and stakeholder groups are at odds over the right path forward. (Goldman, 8/2)
On drug shortages —
Bloomberg:
Black Widow Spider Bite Treatment In Short Supply
“People can’t describe it very well, but they’re writhing in agony on their bed in the emergency department,” says Richard Dart, a poison expert who runs Rocky Mountain Poison & Drug Safety, part of the Denver Health system. “And I mean writhing in agony.” There’s an antivenom that can drastically relieve the pain. But the medicine — like over 300 other drugs in the US — is in short supply. The reasons for the shortage — and the potential solutions — are illustrative of how drugmakers and hospitals might alleviate supply crunches of other medicines. (Swetlitz, 8/3)
CIDRAP:
Most Drugs Made At Tornado-Ravaged Pfizer Plant Available From Other Suppliers, Experts Say
While Pfizer has identified 65 injectable drugs that may be in short supply following extensive tornado damage at its Rocky Mount, North Carolina, plant on July 19, experts say most are available from other suppliers. In a July 21 letter to US hospitals, Pfizer listed the 65 at-risk drugs by name and formulation. The list includes forms of epinephrine, fentanyl, heparin, lidocaine, and sodium chloride. The company said it didn't have an estimated date for resumption of drug production at the plant, but that it would "continue to fill orders of products for which we have inventory in the distribution chain at 100 percent of historical levels." (Van Beusekom, 8/2)
More pharmaceutical news —
Modern Healthcare:
CVS Health To Cut Up To $800 Million In Expenses
CVS Health seeks to reduce expenses by $800 million through restructuring and layoffs to compensate for rising expenses, soft retail performance and Oak Street Health expansion costs, executives told investors Wednesday. The healthcare conglomerate reported a 37% decline in net income to $1.9 billion, or $1.48 per share, on Wednesday. Revenue increased 10.3% to $88.9 billion. CVS shares opened on the New York Stock Exchange at $72.49 Wednesday, down 2% from the closing price on Tuesday. (Tepper, 8/2)
Stat:
Humana, CVS Hope To Turn Members Into Patients At Clinics
Both Humana and CVS Health on Wednesday touted plans to aggressively scale their primary care clinics for seniors and funnel Medicare members into those clinics. It’s a formula that’s been mastered by UnitedHealth Group, which is both the country’s largest Medicare Advantage insurer and one of the biggest physician employers. Even so, investors signaled they think Humana and CVS can catch up, sending both companies’ stock prices higher after their respective second quarter earnings calls Wednesday morning. (Bannow, 8/2)
Stat:
Pharma Showers House GOP Doctor With Campaign Cash
The pharmaceutical industry has been flooding the campaign coffers of Rep. Larry Bucshon, a cardiothoracic surgeon and Republican from Indiana, according to a STAT analysis of this quarter’s filings. CEOs of pharmaceutical giants, executives of the brand-drug lobby PhRMA, and companies’ political action committees all gave in higher-than-usual numbers to the rank-and-file House member last quarter. The total was nearly $56,000 between April 14 and June 30. (Cohrs, 8/3)
