1. Humira’s Best-Selling Drug
Formula: Start at a High Price. Go Higher.
The price of Humira, an
anti-inflammatory drug dispensed in an injectable pen, has risen from about
$19,000 a year in 2012, to more than $38,000 today, per patient, after rebates,
according to SSR Health, a research firm. Humira is among a new class of drugs
known as biologics, which are made from living cells rather than synthetic
chemicals. The industry has argued that high American prices are needed to fund
drug development, but a 2016 study published by the Journal of the American
Medical Association found “no evidence” of an association between research and
development costs and prices; rather, prescription drugs are priced in the
United States primarily on the basis of what the market will bear. https://www.nytimes.com/2018/01/06/business/humira-drug-prices.html
2. Fed Up with Drug Companies,
Hospitals Decide to Start Their Own
For years, hospital executives have
expressed frustration when essential drugs like heart medicines have become
scarce, or when prices have skyrocketed because investors manipulated the
market. Now, some of the country’s largest hospital systems are taking an
aggressive step to combat the problem: they plan to go into the drug business
themselves, in a move that appears to be the first on this scale. The idea is
to directly challenge the host of industry players who have capitalized on
certain markets, buying up monopolies of old, off-patent drugs and then sharply
raising prices. Several major hospital systems, including Ascension, a Catholic
system that is the nation’s largest nonprofit hospital group, plan to form a
new nonprofit company that will provide a number of generic drugs to the
hospitals. https://www.nytimes.com/2018/01/18/health/drug-prices-hospitals.html
3. Celgene Confirms $9B Juno Buyout,
Sees $3B Sales for JCAR017
Celgene has agreed to buy CAR-T
specialist Juno Therapeutics for around $9 billion in a deal that instantly
makes it a big cheese in this emerging therapeutic category. The definitive
terms of the deal—rumors of which hit the headlines —were laid out and revealed
Celgene’s lofty ambitions for Juno’s pipeline, including what it expects could
become $3 billion in sales for lead CAR-T JCAR017, assuming it gets FDA
approval next year. Celgene already owns a little under 10% of Juno and has
collaborated with the CAR-T specialist since 2015, when they signed a 10-year
collaboration to develop treatments for cancer and immune diseases but will now
take complete control of JCAR017—in phase 1 for non-Hodgkin’s lymphoma—as well
as eight additional clinical and preclinical projects.
https://www.fiercebiotech.com/biotech/celgene-confirms-9bn-juno-buyout-sees-3bn-sales-for-jcar017
4. Sanofi, Facing Threat from
Generics, Moves to Buy Hemophilia Drug Maker
The French drugmaker Sanofi stated
that it had agreed to acquire Bioverativ, a biopharmaceutical company focused
on treatments for hemophilia and other rare blood disorders, for $11.6 billion
in cash. Sanofi has sought use acquisitions to bolster its portfolio of drugs,
particularly because it faces declining sales for its diabetes drug, Lantus,
which has lost its patent protection. The Bioverativ deal would enhance
Sanofi’s presence in specialty care and leadership in rare diseases and creates
a platform for growth in other rare blood disorders.
https://www.nytimes.com/2018/01/22/business/dealbook/sanofi-hemophilia-bioverativ.html
5. New Index Rates Drug Companies in
Fight against ‘Superbugs’
GlaxoSmithKline and Johnson &
Johnson are the best of the big pharmaceutical companies at tackling the
growing “superbug” threat, according to an index released at the World Economic
Forum in Davos, Switzerland. The index, which rates companies on their
contributions in preventing the spread of bacteria that are resistant to
antibiotics, found Mylan to be the best of the generic drug makers and rated a
little-known company, Entasis, as top among biotechnology companies. Growing
numbers of people are dying from “flesh-eating” microbes; from infections
picked up in hospital and nursing homes; and from strains of pneumonia,
tuberculosis, gonorrhea and other diseases that are impervious to most drugs.
The Centers for Disease Control and Prevention estimates such infections kill
about 23,000 Americans a year. https://www.nytimes.com/2018/01/23/health/antibiotic-resistence-glaxo-johnson.html
6. Big Data Methods Applied to the
Fitness Landscape of the HIV Envelope Protein
There is still no effective vaccine
for the human immunodeficiency virus (HIV), although recent hope has emerged
through the discovery of antibodies capable of neutralizing diverse HIV
strains. However, HIV can sometimes evade known broadly neutralizing antibody
responses via mutational pathways, which makes it all the more difficult to
design an effective solution. An ideal vaccine would elicit broadly neutralizing
antibodies that target parts of the virus’s spike proteins where mutations
severely compromise viral fitness or the ability to replicate. To achieve this
goal, data scientists from the HKUST and their collaborators from MIT have
employed a computational approach to estimate the fitness landscape of gp160,
the polyprotein that comprises HIV’s spike.
https://medicalxpress.com/news/2018-02-big-methods-landscape-hiv-envelope.html
7. From Clinics to Child Insurance,
Budget Deal Affects Health Care
The budget deal in Congress is
billed as a measure to grant stability to a government funding process that has
lurched from crisis to crisis — but it is also stuffed with provisions that
will broadly affect the nation’s health care system, like repealing an advisory
board to curb Medicare spending and funding community health centers. Among the
more significant provisions is one that would eliminate a powerful 15-member
panel, known as the Independent Payment Advisory Board, created by the
Affordable Care Act to control the rising costs of Medicare. Now, under the
budget deal, it would be eliminated. The Congressional Budget Office estimated
that killing the panel would increase federal spending by $17.5 billion over 10
years. https://www.nytimes.com/2018/02/08/us/politics/budget-deal-health-care.html
8. FDA Clears Insulin Dose
Calculator That’s Connected to a Smartphone App
The US Food and Drug Administration
has cleared a mobile system that could simplify diabetes management for some
patients. Glooko’s Mobile Insulin Dosing System allows doctors to set a dosage
and pulls data from the patient’s glucose monitor to recalculate levels based
on the reading. It’s integrated into Glooko’s existing mobile app and sends
reminders to patients’ cellphones when it’s time to take another dose. Now that
the system is approved, Glooko will start commercializing it and work through
reimbursement. Glooko already has a partnership with Novo Nordisk, which
produces Levemir and Tresiba.
https://www.cnbc.com/2018/02/14/fda-approves-insulin-dose-calculator-thats-connected-to-a-smartphone-app.html
9. How Dental Inequality Hurts
Americans
Not being able to see a dentist is
related to a range of health problems. Periodontal disease (gum infection) is
associated with an increased risk of cancer and cardiovascular diseases. In
part, this reflects how people with oral health problems tend to be less
healthy in other ways; diabetes and smoking, for instance, increase the chances
of cardiovascular problems and endanger mouth health. But the problems go
beyond health. People with bad teeth can be stigmatized, both in social
settings and in finding employment. Studies document that we make judgments
about one another — including about intelligence — according to the aesthetics
of teeth and mouth. https://www.nytimes.com/2018/02/19/upshot/how-dental-inequality-hurts-americans.html
10. Deal Making Just Got Tougher for
Struggling Generic Drugmaker
Generic drugmakers are being
squeezed from both sides. Prices are falling because the companies that buy the
drugs have consolidated, putting the relatively fragmented drugmakers at a
disadvantage. And, the Food and Drug Administration has sped up approvals for
new generic drugs, adding new competition to the market. Mergers among
manufacturers would, in theory, help the industry get its bargaining power
back, and there are some small deals awaiting regulatory approval. Teva
Pharmaceutical Industries told that it is considering additional asset sales as
a way to help reduce its high debt burden. https://www.wsj.com/articles/deal-making-just-got-tougher-for-struggling-generic-drugmakers-1519209002?mod=searchr
esults&page=1&pos=7
11. How Amazon, JPMorgan, Berkshire
Could Transform American Health Care
With the world’s three richest
people leading the charge – Amazon CEO Jeff Bezos and Berkshire CEO Warren
Buffett – as well as JPMorgan Chase CEO Jamie Dimon, the newly minted coalition
is hoping to lower health care costs for the companies’ employees and deliver
significant advancements for all patients. One sign the new alliance is
building momentum is that more companies are interested in joining them.
Perhaps the biggest key to the coalition leaders’ strategy is their disavowal
of profit motives. The new company they plan to establish will not seek to
profit off of health care, unlike the industry’s leading for-profit insurers,
drug makers and many health care providers. https://www.usatoday.com/story/money/2018/02/25/amazon-jpmorgan-berkshire-health-care
12. Discovery Reveals Way to Stop
Inflammation in Alzheimer’s, Arthritis, More
A new discovery about the immune
system may allow doctors to treat harmful inflammation that damages the brain
in neurodegenerative diseases such as Alzheimer’s. It might also let doctors
save patients from the potentially deadly inflammation of sepsis, a full-body
infection that kills a quarter-million Americans every year. UVA’s Carter
Immunology Center’s new finding, involving important immune cells known as
macrophages, could offer a way around that. The center has identified a
specific electrical switch, known as an ion channel, within macrophages that
controls the flow of calcium into the cells. By targeting this switch with tiny
molecules, researchers could deny the macrophages calcium and prevent
inflammation - even in the brain.
https://www.sciencedaily.com/releases/2018/02/180226122511.htm
13. States Consider Bringing
Prescription Drugs from Canada to US as Costs Soar
In the face of surging prescription
drug prices, some US states are proposing to import medicines in bulk from
Canada, where many drugs are cheaper thanks to government price controls.
Vermont lawmakers are considering legislation to create an agency which would
buy popular prescription medicines in bulk from Canada, and then distribute to
pharmacies in the state. Utah, Oklahoma and West Virginia have proposed similar
measures. The desperate move comes as the cost of pharmaceuticals is expected
to grow faster than other US healthcare spending in the next decade.
https://www.theguardian.com/us-news/2018/mar/01/prescription-drugs-costs-us-import-canada
14. Opioid Maker Insys Still Has
Fans on Wall Street
Insys Therapeutics has lost its
former CEO and co-founder, John Kapoor, and several top executives, all charged
with conspiracy to illegally distribute an addictive prescription painkiller.
The company has lost more than 80% of its market cap since its peak price in
2015 amid declining sales and multiple lawsuits from states over how it
marketed Subsys, a mouth-spray version of the potent opioid painkiller fentanyl
that is approved by the Food and Drug Administration to treat cancer-related
pain. But Insys hasn’t lost all of its following on Wall Street. Four of the
six analysts who cover Insys still recommend buying the stock. Despite the
threat of looming litigation, they note the possibilities in the company’s
pipeline and the potential stabilization of Subsys sales, among other things. https://www.wsj.com/articles/opioid-maker-insys-still-has-fans-on-wall-street-1520286053?mod=searchresults&page=1&pos=3
15. United Healthcare Says It Will
Pass on Rebates from Drug Companies to Consumers
In response to growing consumer
frustration over drug prices, United Healthcare, one of the nation’s largest
health insurers, said that it would stop keeping millions of dollars in
discounts it gets from drug companies and share them with its customers. Dan
Schumacher, the president of United Healthcare, said the new policy will apply
to more than seven million people who are enrolled in the company’s fully
insured plans, beginning 2019. Insurers like United Healthcare, whose parent
company also owns a large pharmacy benefit manager, OptumRx, have come under
increasing public pressure as drug prices — especially for brand-name drugs —
continue to rise, angering consumers and lawmakers. https://www.nytimes.com/2018/03/06/health/unitedhealth-drug-prices.html
16. Healthcare M&A Outlook
Bright for 2018: Analysts
After a subdued 2017, analysts and
industry experts predict 2018 to be a robust year for healthcare M&A.
Separate reports by EY and Baker & McKenzie predict a significant rise in
M&A’s this year. Aligning with the forecasts, healthcare companies have
started the year on a positive note, announcing deals worth over $30bn already.
Giving the biotech sector a flying start, Sanofi announced two major
acquisitions- Bioverativ for $11.6bn and Albynx for $4.8bn. Marking Korea’s
first pharma investment in Ireland, the country’s SK Biotek a global life
sciences company announced the acquisition of the former Bristol-Myers Squibb
API facility. This recent flurry of M&A activity in pharmaceuticals and
biotech has prompted industry experts to predict a robust year for M&A
across life sciences.
https://www.biospectrumasia.com/analysis/25/10447/healthcare-ma-outlook-bright-for-2018-analysts.html
17. Cigna to Buy Express Scripts for
$67 Billion
Cigna has announced plans to buy
Express Scripts pharmacy management organization in a deal valued north of $60
billion. The deal will bring pharmaceutical and medical claims branches of the
health care business under one roof and represents the latest example of
industry consolidation, following the nearly $70 billion CVS-Aetna union announced
late last year. In total, the deal is expected to be valued at $67 billion,
including Cigna’s acceptance of $15 billion of debt held by Express Scripts. It
is expected to allow Cigna to have a hand in negotiating lower prescription
drug prices, potentially cutting costs for the company during a time of health
care volatility.
https://www.usnews.com/news/economy/articles/2018-03-08/cigna-to-buy-express-scripts-for-67-billion
18. World Health Organization Gets
Ready for ‘Disease X’
The World Health Organization
included “Disease X” in its most recent global plan for accelerating research
and development during health emergencies like the Ebola, SARS or Zika
epidemics. The strategy and preparedness plan, known as the 2018 R&D
Blueprint, was published last month. Essentially, scientists develop
customizable recipes for creating vaccines. Then, when an outbreak happens,
they can sequence the unique genetics of the virus causing the disease and plug
the correct sequence into the already-developed platform to create a new
vaccine. https://www.cnn.com/2018/03/12/health/disease-x-blueprint-who/index.html
19. Trump Promising Consumers
Digital-Age Healthcare Approach
The Trump administration is taking a
pragmatic new tack on health care, with officials promising consumer friendly
changes and savings in areas from computerized medical records to prescription
drugs. New Health and Human Services Secretary Alex Azar has been rolling out
the agenda, saying it has the full backing of President Donald Trump. With Azar
installed as Trump’s second health secretary, the administration is shifting to
issues of broader concern for people with Medicare and employer-provided
coverage. Many of the ideas have bipartisan support and can be advanced without
legislation from Congress.
https://www.washingtonpost.com/politics/health_care/trump-promising-consumers-digital-age-health-careapproach/2018/03/12/