Morning Briefing
Summaries of health policy coverage from major news organizations
The Lucrative Practice Of Flipping Drugs: Buy The Rights, Hike The Price, Then Resell
Bloomberg: Investors Are Hooked On Flipping Pharmaceuticals
Dealmakers have always flipped companies. Lately, they’ve been flipping something else: aging pharmaceuticals. Take Actimmune, developed by Genentech Inc. decades ago. By 2012, sales were fizzling. Then rights to the immune-disorder treatment were acquired by a company backed by private equity. The price climbed, 434 percent in two years, and Actimmune was a hot property. Horizon Pharma Plc snapped it up. Or consider the old Novartis AG cold-sore cream Denavir, notching a 372 percent gain as it changed hands twice with private equity help. Or Dutoprol, 1,057 percent more expensive after a flip. Or Miacalcin, 3,259 percent higher. (Langreth, 11/2)
In other pharmaceutical news —
Reuters: Senator Grassley Asks Defense Department To Explain EpiPen Spending
U.S. Senator Chuck Grassley asked the Department of Defense and the Department of Veterans Affairs on Tuesday to explain spending trends for the EpiPen emergency allergy treatment. The request followed a recent report by Reuters detailing how EpiPen price hikes by manufacturer Mylan NV had added millions to U.S. Department of Defense spending since 2008 as the agency covered more prescriptions for the lifesaving allergy shot at near retail prices. (Beasley, 11/1)
The Wall Street Journal: Pfizer Cuts Outlook, Ends Development Of Cholesterol Drug
Pfizer Inc. ended its bid to return to the multibillion-dollar cholesterol market that long fueled the company, halting development of a once-promising drug candidate amid safety concerns and mounting pricing pressures confronting the industry. (Rockoff and Hufford, 11/1)
The Wall Street Journal: Valeant, In Push For Cash, Looks To Sell Stomach-Drug Business
Valeant Pharmaceuticals International Inc. is in advanced talks to sell a big stomach-drug business to Japan’s Takeda Pharmaceutical Co. for about $10 billion, a move seen easing pressure on Valeant over its hefty debt load. The companies could reach a deal for Salix Pharmaceuticals Ltd., which Valeant bought just a year-and-a-half ago for roughly $11 billion, in the coming weeks, people familiar with the matter said. (Benoit and Rockoff, 11/2)
For more news on high drug costs, check out our weekly feature, Prescription Drug Watch, which includes coverage and perspectives of the issue.
