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Wednesday, Feb 15 2017

Full Issue

Next Up On The Pharma Rebranding Bandwagon: Generics

News outlets report on stories related to pharmaceutical drug pricing.

The Generic Pharmaceutical Association is no more. Meet the Association for Accessible Medicines. Every industry group invested in the drug-pricing debate is gearing up and burnishing its brand. PhRMA, the brand-name pharmaceuticals lobby, has its 鈥淕o Boldly鈥 campaign. Now the generics lobby is launching its own 鈥渆ducation campaign鈥 under a whole new name. (Scott, 2/14)

Drug makers are promising to create tens of thousands of American jobs if President Donald Trump follows through on his promise to give them a big tax break if they 鈥渞epatriate鈥 cash they鈥檝e stashed overseas. But that鈥檚 not what happened last time pharma got a tax holiday. Instead, drug makers used the tens of billions they brought back to the US to enrich their CEOs and drive up their stock prices. Rather than adding jobs, they laid off thousands of workers. (Garde, 2/10)

If President Donald Trump keeps his promise, the world鈥檚 biggest drug makers will soon get access to billions of dollars siloed overseas. And if investors and analysts are right,聽much of that money will聽go toward acquisitions. So what might pharma buy with its freed-up capital? According to a recent investor survey by聽EvercoreISI,聽these are 2017鈥檚 most likely takeout targets. (Garde, 2/10)

U.S. President Donald Trump's vow to roll back government regulations at least 75 percent is causing anxiety for some pharmaceutical executives that a less robust Food and Drug Administration would make it harder to secure insurance coverage for pricey new medicines. The prospect of big change at the regulatory agency comes as drugmakers are under fire for high prices, including Marathon Pharmaceuticals LLC, which said Monday it was "pausing" the launch of its Duchenne muscular dystrophy drug after U.S. lawmakers questioned its $89,000 a year price. (2/15)

The CEO of the latest drugmaker to face criticism over聽a product鈥檚 high price has a history of steep hikes on other drugs and at past companies. Marathon Pharmaceuticals LLC Chief Executive Officer Jeffrey Aronin, under fire聽for setting an $89,000 price on the company鈥檚 drug for a rare, deadly muscle disease, was questioned聽in a letter more than two years ago by Washington lawmakers about mark-ups on two heart drugs.聽Years earlier, as the leader of another company, Aronin took high price increases on a drug used to treat babies with a congenital defect. (Greifeld and Langreth, 2/14)

In the fast-moving Washington game of who鈥檚 to blame for high U.S. drug prices, an often-overlooked industry is readying its defenses against pharmaceutical companies that fault other parts of the health sector for the costs faced by patients. Known as pharmacy benefits managers, or PBMs, the industry includes giants such as Express Scripts Holding Co. and CVS Health Corp., which negotiate prices with drugmakers, work with pharmacies and help set the co-pays patients pay out of pocket. Now these聽middlemen are now taking it from all sides. (Tracer, Langreth and Edney, 2/8)

Concerned about the way that some drug makers report earnings in their financial statements, the US Securities and Exchange Commission recently indicated plans to evaluate pharmaceutical industry accounting practices.The plans were聽disclosed in a Jan. 11 letter that the agency sent to Allergan over GAAP, or generally accepted accounting principles. (Silverman, 2/13)

The price of a drug that has saved the lives of more than 800 people overdosing on heroin or other opioids in Baltimore is rising rapidly.The antidote known as naloxone revives addicts after they've stopped breathing, with either a simple spray in their nose or an injection.聽The use of naloxone is a centerpiece of Baltimore public health officials' wide-ranging efforts to battle the growing heroin epidemic, but the rising price of the antidote could constrain the campaign to stop or at least slow the rate of overdose deaths. (Cohn, 2/13)

Calling it 鈥渁 travesty on the taxpayers,鈥 U.S. Sen. Angus King is pressing to secure congressional approval to let Medicare negotiate lower prescription drug prices. The proposal would allow the government health care program for seniors to seek volume discounts from pharmaceutical companies that provide drugs for Medicare Part D鈥檚 41 million participants. (Collins, 2/13)

Aformer head of a pharmacy benefits manager pleaded guilty in federal court in Texas on Monday to paying kickbacks in order to win business from government health plans. Between 2001 and 2013, Douglas Pick, who was once chief executive at Pharmaceutical Technologies, orchestrated nearly $3.6 million in combined payments to the head of a health plan, as well as several individuals who were hired to boost business for the PBM, according to court documents. Pick faces up to three years in federal prison, according to the US Department of Justice. (Siverman, 2/14)

After losing one challenge to Gilead Sciences patents on hepatitis C drugs in India, patient advocacy groups are now challenging still other patents the company holds for its drugs in the country. At the same time, the groups are also challenging Gilead patents in Argentina, moves that reflect an ongoing strategy to widen patient access to the medicines. (Silverman, 2/14)

A coalition of Tennessee patient and health care provider groups backed by major U.S. drug companies is behind a bill that would stop聽insurance companies from switching the medications they cover to cheaper substitutes midway through a coverage year. The Reliable Coverage Act聽would require聽insurance companies to keep providing聽the same medication coverage they promise when enrollees sign up each year. Currently insurers can change the medications they cover midway through an enrollment year by ending coverage of a particular drug entirely, which聽increases out-of-pocket costs for a drug or requires聽additional approval by the insurance company before a drug is covered. (Wadhwani and Boucher, 2/13)

The just-departed commissioner of the Food and Drug Administration has concerns about plans to speed up drug approvals and dramatically reduce regulations at the agency, as advocated recently by President Donald Trump. Dr. Robert Califf, who stepped down last month, shared his thoughts about keeping Americans safe 鈥 and making sure drugs actually work 鈥 after about a year overseeing the federal agency. (Lupkin and Tribble, 2/14)

Controversial former pharmaceutical executive Martin Shkreli is set to speak at Harvard while out on bail awaiting his federal securities fraud trial. The former CEO of Turing Pharmaceuticals is expected to talk about investing and healthcare at an event organized by the Harvard Financial Analysts Club. The talk on Wednesday is open to the Harvard community only. (2/12)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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