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Morning Briefing

Summaries of health policy coverage from major news organizations

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Wednesday, Jun 13 2018

Full Issue

Despite All The Talk About Cutting Drug Costs, Triple-Digit Spikes In Prices Are Still Around

News outlets report on stories related to pharmaceutical pricing.

Even as the Trump administration looks for ways to mollify angry consumers over rising drug prices, some companies continue to push the proverbial envelope. Take Bayer. Late last month, the drug maker boosted wholesale, or list, prices for two cancer drugs by 7.9 percent. And that followed 5 percent price hikes last December. In other words, prices rose by 13 percent for each drug in half a year, greatly exceeding inflation and above the 10 percent annual cap that some drug makers have voluntarily embraced. (Silverman, 6/7)

Two weeks after President聽Trump in May unveiled a plan to lower drug prices聽for Americans, promising 鈥渋t will start to take effect very soon,鈥澛爐he drug company Bayer hiked the list prices of two cancer drugs by more than $1,000 per month. Bayer wasn't alone. A research note by Wells Fargo analyst David Maris found that although fewer drug-price increases occurred in May than in previous months, dozens of increases did occur.鈥淲e believe drug pricing remains a risk for the pharmaceutical industry,鈥 Maris wrote. 鈥淭he President has highlighted lowering the cost of healthcare as a key objective and we do not expect the negative commentary around the cost of medicines will soon subside.鈥 (Johnson, 6/8)

Bringing more generic drugs to market is a critical component of lowering drug prices, but it is not a panacea, according to a new report. The U.S. Food and Drug Administration has looked to increase generic competition as the primary lever to stem sky high drug prices. While the agency has succeeded in doing so, there's a ceiling on the ultimate impact of that plan, researchers from PricewaterhouseCoopers said. (Kacik, 6/12)

Under federal pressure to tighten the pharmaceutical supply chain and keep drugs from falling into the wrong hands, drug companies are ramping up experiments with promising but unproven blockchain technologies. AmerisourceBergen Corp. and Merck & Co. Inc. plan to expand a test project completed last year that tracked the ownership of drugs moving through the health-care supply chain. The new test will increase the number of drugs and health-care devices and perform more complex transactions, said Dale Danilewitz, chief information officer at the drug distributor. (Nash, 6/6)

Sprout Pharmaceuticals Inc. is relaunching Addyi, the first-ever approved drug for low libido in women -- and it鈥檚 slashing the drug鈥檚 price in half. The new price will be $400, down from $800 for a monthly prescription. The uninsured and those not covered for the treatment will pay no more than $99. It鈥檚 a rare step for a pharmaceutical company: Drugs typically go up in price on an annual basis, sometimes even twice a year. (Koons, 6/11)

Despite mistrust of the pharmaceutical industry, most people who participate in clinical trials are willing to have their data shared with researchers who work at drug companies, although concerns remain that the information may be used for marketing purposes, according to a new study. Specifically, 44 percent of clinical trial participants who were queried indicated that they have little to no trust in drug makers, yet overall, 82 percent said they were very or somewhat likely to allow scientists at for-profit companies to access their data. (Silverman, 6/11)

Eli Lilly & Co. and AstraZeneca Plc ended two late-stage trials of an experimental drug for Alzheimer鈥檚 disease after the treatment failed to show any signs of working, adding to a litany of disappointments for the memory-robbing illness. An independent data-monitoring committee found that the medicine, lanabecestat, was unlikely to meet the goals of the studies, one for early Alzheimer鈥檚 and the other for mild dementia related to the disease, the companies said in a statement Tuesday. There were no safety concerns, they said. (Serafino, 6/12)

AstraZeneca PLC and Eli Lilly & Co. on Tuesday scrapped two late-stage trials of an experimental Alzheimer鈥檚 drug they were co-developing, the latest blow in the long quest to find a breakthrough for the memory-robbing disorder. The companies said the decision was taken after an independent data-monitoring committee concluded that trials associated with lanabecestat, the experimental drug, wouldn鈥檛 achieve their original goals. The companies said the treatment wasn鈥檛 working as well as they had hoped and that ending the trials wasn鈥檛 a result of any safety concerns. (Rana and Loftun, 6/12)

To ensure a new drug works properly after marketing approval is granted, the Food and Drug Administration regularly requires a drug company to run a so-called post-marketing study. But a new analysis found a troubling lack of timely follow-through as well as basic information. Specifically, one in four studies was never publicly disseminated. Meanwhile, there was often little information about post-marketing requirements 鈥 the median description was just 44 words 鈥 and some were difficult to categorize. There was also a lack of up-to-date information on the progress of about one-third of these study requirements. (Silverman, 6/12)

It鈥檚 a small update to a Food and Drug Administration policy first launched by the Obama administration, but top Trump health officials 鈥 and key congressional Republicans and drug makers 鈥 are nonetheless touting it as a central part of the Trump camp鈥檚 efforts to lower prescription drug prices. On Tuesday, the FDA finalized guidance documents, released in draft form in mid-January 2017, making it clear that drug and device companies are allowed to share with insurers information that is not in the FDA-approved labeling. Insurers can use that information to determine how much they should pay for the drugs, FDA commissioner Scott Gottlieb said in a statement. (Swetlitz, 6/12)

Johnson & Johnson said it will move forward with the $2.1 billion sale of its diabetes monitoring unit LifeScan Inc. to Platinum Equity, a private investment firm. J&J said in March that it had received a $2.1 billion binding offer from Platinum Equity. On Tuesday, it said it had formally accepted that offer. The health-care company said it expects the deal to close by the end of the year. (Armstrong, 6/12)

Local companies have already produced revolutionary treatments for rare diseases, cancer and more. And there's promise and hope for cures and treatments still to come. ... Biotech companies often go public even if they haven't yet put a product on the market, let alone turned a profit. (Joliocoeur and Mullins, 6/8)

Dealing with the ever-changing landscape of prescription drug costs can be challenging. High drug prices are among the top reasons our viewers reach out to our consumer team, viewers like Larry Hammons, who depends on medication to control his seizures. Like million of Americans, he is on a fixed income, so he also depends on his medication being affordable but recently, in a pinch, he tried a different pharmacy than his usual and found his medication was triple was he normally pays.聽(Castro, 6/11)

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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