Obscure But Vital Source Of Cash May Be Sword Valeant Dies On
News outlets report on the pharmaceutical drug industry.
The New York Times:
How Valeant Cashed In Twice On Higher Drug Prices
The mania surrounding Valeant Pharmaceuticals International hit its peak a year ago. Strange as it may seem today after all that has happened, on Aug. 5, 2015 — two weeks after a dazzling second-quarter earnings report — the drug company’s stock closed at $262.52. J. Michael Pearson, Valeant’s chairman and chief executive at the time, took a victory lap when he announced those earnings. “We once again exceeded our guidance and delivered our fourth consecutive quarter of greater than 15 percent organic growth,” he said. (Morgenson, 7/29)
The Wall Street Journal:
CVS Drops Coverage Of 2 Branded Biotech Drugs In Favor Of Copies
CVS Health Corp. is embracing new, cheaper copies of biotech medicines in an attempt to combat rising prescription drug costs. CVS, whose Caremark unit administers drug-benefit plans for employers and insurers, said Tuesday it would drop coverage of two higher-priced medicines used in diabetes and cancer treatments. It will instead cover their replica versions, sometimes called biosimilars, for many of its drug-plan members. (Walker and Ziobro, 8/2)
Morning Consult:
Prescription Drugs Aren’t The Largest Driver Of Premium Increases
Despite all the emphasis being put on the cost of prescription drugs, outpatient spending is expected to be the largest driver of premium increases in 2017, according to an analysis by Avalere Health, an independent consulting firm. The research found that outpatient spending accounts for 29.9 percent of rate increases and makes up 27.4 percent of insurance plans’ spending. Contrary to recent headlines and claims from insurers that prescription drugs are to blame for rising insurance costs, the analysis found that prescription drug spending represents a smaller portion of rate increases. (Owens, 8/2)
Modern Healthcare:
Apps For Rx Sticker Shock
For many patients ..., especially those with high-deductible insurance plans, the price of filling a prescription is largely unknown until they get to the pharmacy. That can leave some patients shocked at the register, sometimes unable or unwilling to pay. That's not good for patients or for healthcare. When people don't take their drugs or take less than the prescribed dose, the result can be disastrous. ... A number of insurers, pharmacy benefit managers and technology companies are developing smartphone and computer apps to provide that information for patients and physicians. They provide coverage information before patients reach the pharmacy, inform patients where their prescription can be filled at the lowest cost, and offer alternatives that may be cheaper. (Rubenfire, 7/30)
Stat:
Why Democratic Convention Viewers Saw So Many Drug Ads
Democratic politicians made a few jabs at the pharmaceutical industry at their convention this week, but viewers tuning in at home saw something of a counterargument during commercial breaks: a stream of ads promoting drugs — and the drug industry. Pfizer, for instance, ran 25 ads across all six major networks carrying the Democratic National Convention, according to the media research firm iSpot.tv. (Robbins, 7/29)
Politico Pro:
Drug Lobby Gears Up For Massive PR Campaign
Here’s what K Street’s powerhouse drug lobby wants you to know: PhRMA is back, PhRMA is big and PhRMA is ready to defend drug prices after the presidential election. The group’s playbook for 2017 includes adding new members, raising dues and retooling a lobbying machine that insiders say atrophied since achieving many of its top goals with Obamacare’s passage six years ago. Now it’s ready to shout its message not just inside the corridors of power but beyond the Beltway, with a massive campaign expected to cost a few hundred million dollars — easily eclipsing the $20 million that health insurers spent on the iconic “Harry and Louise” campaign credited with sinking Hillary Clinton’s health reform plan in the early 1990s. (Karlin-Smith, 8/2)
Stat:
Biotechs Say That Controversy Over Pricing Is A Bigger Risk Each Year
The clamor over prescription drug pricing is weighing more heavily on biotech managements. A recent review of risk factors cited by the 100 largest companies listed in the Nasdaq Biotechnology Index found 89 percent cited worries over pricing pressures, according to the BDO advisory and consulting firm, which examined filings with the US Securities and Exchange Commission. And concern has been steadily rising. In 2015, the firm noted that 79 percent of biotechs cited anxiety over pricing as a risk factor to their businesses, while 68 percent did so in 2014 and 66 percent in 2013. Thanks to increased controversy over the cost of medicines, pricing is now the 16th most worrisome issue. (Silverman, 8/1)
USA Today:
Critics Target Institute That Evaluates Price, Value Of Drugs
Federal regulators this spring boosted the profile of a once-small academic institute that compares the value and price of prescription drugs, and now the group is coming under attack from pharmaceutical companies and allied patient groups. The pharmaceutical companies are threatened by a potential drop in payments for their drugs by the federal government, and the patient groups — often subsidized in large part by drug companies — say they're worried life-saving drugs may get delayed or rationed. (Crescente and O'Donnell, 7/28)
Stat:
Pharmacy Benefit Managers Are Restricting Access To Lots Of Drugs Next Year
In the latest bid to control prescription drug spending, the nation’s largest pharmacy benefits managers are again excluding dozens of medicines from their lists of products that are covered by health insurance, which are known as formularies. PBMs, you may recall, are crucial, behind-the-scenes middleman who negotiate drug prices on behalf of companies, unions, and government agencies. On Monday, Express Scripts notified its customers that next year, 85 medicines will be excluded from its national formulary, and, as a result, the PBM hopes to recognize about $1.8 billion in savings, up from $1.3 billion this year. (Silverman, 8/2)
The Fiscal Times:
Why Lower Profits From Gilead's Wonder Drugs Are Good News For Taxpayers
With consumers and federal and state health care providers reeling from the staggering cost of expensive miracle drugs for treating the deadly hepatitis C virus, Congress has been under pressure to either rein in pharmaceutical companies’ prices or provide increased government funding to cover the expanding costs. State Medicaid officials recently turned to Congress for assistance in meeting the fast-rising demand for the drugs, which can cost as much as $95,000 for a 12-week treatment. Many state officials worry about the implications of a recent federal court ruling in Seattle that Washington state’s Medicaid system must rescind a year-old policy limiting the treatment only to patients with the most severe cases of hepatitis C infections. (Pianin, 7/27)