Morning Briefing
Summaries of health policy coverage from major news organizations
Federal Prosecutors Investigate Drug-Pricing Practices By Merck, Lilly
U.S. drugmakers Merck & Co and Eli Lilly & Co are being investigated by federal prosecutors over their drug-pricing practices, the companies disclosed. The exact nature of the investigations and where they might lead was not immediately clear. Lilly, in an Oct. 30 regulatory filing, said the Philadelphia U.S. Attorney's Office and the civil division of the U.S. Department of Justice are investigating its distribution agreements with wholesalers. The agreements are used to determine Average Manufacturer Prices that are the basis of required rebates to the Medicaid healthcare program. (Pierson, 11/19)
A decades-old drug whose price surged after its maker was acquired is back in the spotlight thanks to a notorious short-seller’s scrutiny. H.P. Acthar Gel, extracted from the pituitary glands of pigs and used for patients with lupus, multiple sclerosis and other conditions, rose from $1,235 a vial in 2005 to $29,086 a vial in 2008, according to Red Book, a directory of drug prices. The increase caused an uproar, long before such price hikes became so common that they’re now an issue in the presidential campaign. A vial now costs about $35,000, according to price comparison site GoodRx. (Koons and Langreth, 11/10)
Pfizer Inc. and Allergan Plc are moving toward a plan to make Brent Saunders chief executive officer if the two drug giants reach a takeover agreement, according to people familiar with the matter. A combined Pfizer and Allergan would probably split into two companies eventually, with Allergan CEO Saunders taking the helm of the faster-growing business of new brand-name drugs, said the people, who asked not to be identified because negotiations are private. The other unit would contain older products at or near the end of their patent lives. (Campbell, David and Koons, 11/10)
Elsewhere, President Barack Obama expresses concern about drug-pricing issues but also talks about the important role the U.S. plays in the development of new medicines -
President Barack Obama says he’s worried about rising prescription drug prices, but consumers need to take into account the United States’ role in the development of new medications, he told WUSF in a one-on-one interview. Lawmakers are pointing to prescription drugs costs as a main culprit in rising health care costs, from Florida to the U.S. Capitol, where new hearings on price gouging were announced last week. The President said part of the problem is that the U.S. doesn’t negotiate drug prices, even for programs like Medicare. And it’s also the world leader in developing new drugs. (Shedden, 11/8)
