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Morning Briefing

Summaries of health policy coverage from major news organizations

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Wednesday, Nov 30 2016

Full Issue

Perspectives: Aggressive Government Intervention On Prices Would Backfire

Read recent commentaries about drug-cost issues.

The rollout of new drugs like Sovaldi, the pricing revelations at Turing Pharmaceuticals, and the Epipen episode have fed both concerns about pharmaceutical pricing and problematic proposals to address these concerns. Three-quarters of Americans say they want more government interventions to address public alarm around drug prices. Clearly there is widespread unease about the pricing of treatments, availability of lower-cost generics, competition in the pharmaceutical sector, and the ability for patients to access the drugs they need. (Doug Holtz-Eakin, 11/29)

In the furor over high drug prices, both Congress and the media have largely focused on the role played by drug companies such as Turing Pharmaceuticals, Valeant, and Mylan. Another contributor — pharmacy benefit managers and the rebates they get from drug companies — is only now getting the attention it deserves. (Douglas Hoey, 11/28)

The most anticipated pharma news of 2016 lived down to expectations. Following in the footsteps of nearly every other company that has sought to treat Alzheimer's disease, Eli Lilly announced Wednesday that its Alzheimer's drug solanuzemab (sola) failed a huge Phase 3 clinical trial, sending shares down 10.5 percent. (Max Nisen, 11/25)

It's no secret that drug costs have been steadily increasing year by year. From 2014 to 2015, overall drug spending increased 12 percent, the highest rate of increase in more than a decade. It's not just specialty drugs increasing in price: Older generic drugs are becoming more expensive and scarce. At least 315 generics have doubled in price since 2012, many of which lack market competition. (Julia Michaloski, 11/27)

Actelion Ltd. is a $20 billion company with ambitious founder-owners known for spurning takeovers, two potential blockbuster drugs, and a strong late-stage research pipeline. If Johnson & Johnson is going to buy this company, then it will likely have to pay up. At first glance, such a deal would seem to run counter to J&J's promises to be disciplined about acquisitions. But some things are worth a higher price. (Max Nisen, 11/28)

If you can have your cake and eat it, why wouldn't you? That may be what Johnson & Johnson has to offer the managers of the Swiss biotech Actelion Ltd. to get some kind of deal done. The target is reportedly more open to merging some assets in return for a stake than being taken over outright. Actelion's managers would get the benefits of a tie-up while staying independent. What's in it for J&J is less clear. (Chris Hughes, 11/29)

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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