Morning Briefing
Summaries of health policy coverage from major news organizations
Post-Bankruptcy Rite Aid Will Function As A Private Company
Rite Aid will operate as a private company after it successfully completed its financial restructuring and emerged from Chapter 11 bankruptcy, the U.S. drugstore chain said on Tuesday. The pharmacy has used its bankruptcy to close hundreds of stores, sell its pharmacy benefit company Elixir, and negotiate settlements with its lenders, drug distribution partner McKesson and other creditors. (9/4)
The U.S. Drug Enforcement Administration (DEA) has allowed an increase in Vyvanse production of around 24 percent to help with the ADHD drug shortage nationwide. The DEA greenlighted the spike in production following a Food and Drug Administration (FDA) request, according to a notice first reported by Bloomberg News. The FDA’s request came in July. (Timotija, 9/4)
Walgreens is facing a proposed class action lawsuit brought on Wednesday by customers who say they weren’t warned that the pharmacy chain’s generic version of cold medicine Mucinex contains a cancer-causing chemical. The lawsuit, filed in Chicago federal court, claims Walgreens did not label the products or otherwise warn customers that they contained benzene, a known carcinogen. (Jones, 9/4)
Johnson & Johnson plans to pay an additional $1.1 billion to resolve tens of thousands of legal actions alleging its baby powder and other talc products caused cancer, two people familiar with the matter said. The increase would boost the size of the settlement to more than $9 billion paid over 25 years. J&J on Wednesday said it reached an agreement with a plaintiffs' lawyer representing 12,000 clients to recommend the settlement offer to them, adding to support already received from other claimants. (Spector and Knauth, 9/4)
On weight loss drugs —
Ochsner Health is expanding its digital medicine program to offer weight management, the health system said Wednesday. Some patients in the program will have access to popular weight loss medications including glucagon-like peptide agonists, Ochsner said in a news release. The digital medicine program has previously focused on patients with hypertension, Type 2 diabetes and hyperlipidemia. (Perna, 9/4)
The U.S. military spends $1.24 billion each year to address obesity in the ranks, but Defense Department policies have been slow to adopt weight management treatments, including therapies and medications such as Wegovy or Zepbound, to address a major readiness concern, according to new research. Obesity is the main reason potential recruits are disqualified from serving -- preventing an estimated 52,000 from joining last year -- and is a leading cause of separation from duty, with roughly 101,000 troops leaving from 2018 to 2022 for weight-related reasons, according to a paper published Wednesday by the American Security Project think tank. (Kime, 9/4)
