From Reuters

Explainer: Trump’s Plan to Cut Drug Prices

July 27, 2020

The orders, which range from relaxing drug importation rules to cutting Medicare payments to drugmakers, are far reaching but experts say they are unlikely to take effect in the near term and in some cases lack specifics.

The executive orders have for the most part been proposed by the Trump administration in various forms in the past, but stalled amid industry pushback.

The orders, which range from relaxing drug importation rules to cutting Medicare payments to drugmakers, are far reaching but experts say they are unlikely to take effect in the near term and in some cases lack specifics.

The executive orders have for the most part been proposed by the Trump administration in various forms in the past, but stalled amid industry pushback.

PASSING ON REBATES TO PATIENTS

Trump signed an executive order requiring that the pharmaceutical benefits managers (PBMs) that negotiate on behalf of government health plans pass the discounts they receive directly to consumers. The rule applies to Medicare Part D, a government health plan primarily for seniors. It would reverse the longstanding practice of PBMs passing a portion of savings back to the health plan itself and pocketing the remainder as profit….

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Will Gilead Price Its Coronavirus Drug for Public Good or Company Profit?

May 6, 2020

Gilead Sciences Inc (GILD.O) faces a new dilemma in deciding how much it should profit from the only treatment so far proven to help patients infected with the novel coronavirus.

The drugmaker earned notoriety less than a decade ago, when it introduced a treatment that essentially cured hepatitis C at a price of $1,000 per pill.

Public outrage over the cost of Sovaldi in 2013 – despite that it was a vast improvement over existing equally expensive therapies – ignited a national debate on fair pricing for prescription medicines that the pharmaceutical industry has fought to deflect ever since.

Gilead Sciences Inc (GILD.O) faces a new dilemma in deciding how much it should profit from the only treatment so far proven to help patients infected with the novel coronavirus.

The drugmaker earned notoriety less than a decade ago, when it introduced a treatment that essentially cured hepatitis C at a price of $1,000 per pill.

Public outrage over the cost of Sovaldi in 2013 – despite that it was a vast improvement over existing equally expensive therapies – ignited a national debate on fair pricing for prescription medicines that the pharmaceutical industry has fought to deflect ever since.

That backlash has subsided considerably in the midst of the coronavirus pandemic, during which drugmakers’ efforts to develop vaccines and treatments is considered essential to battling a disease that has infected some 3.7 million people and killed over 258,000 worldwide….

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U.S. Government Aims at High Insulin Prices With Plan for $35 Copay in Medicare

March 12, 2020

The Trump administration on Wednesday turned back to its pledge to fight high U.S. drug prices with a plan to limit the out-of-pocket cost for insulin, a life-saving medicine, to $35 per month for many people with diabetes who are enrolled in Medicare.

The Center for Medicare and Medicaid Services, part of the U.S. Department of Health and Human Services, is lining up drug makers and the private insurers who manage Medicare drug benefits to volunteer to test out the new pricing in 2021. Medicare drug plans cover about 46 million people aged 65 and older and with disabilities.

The Trump administration on Wednesday turned back to its pledge to fight high U.S. drug prices with a plan to limit the out-of-pocket cost for insulin, a life-saving medicine, to $35 per month for many people with diabetes who are enrolled in Medicare.

The Center for Medicare and Medicaid Services, part of the U.S. Department of Health and Human Services, is lining up drug makers and the private insurers who manage Medicare drug benefits to volunteer to test out the new pricing in 2021. Medicare drug plans cover about 46 million people aged 65 and older and with disabilities.

Insulin is made largely by three companies: Eli Lilly and Co, Novo Nordisk A/S and Sanofi SA. Both they and health insurers have begun offering discounted insulin. Eli Lilly and Sanofi said in statements that they planned to take part in the program. Novo Nordisk said in a statement that it was looking at the details of the program….

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Walgreens Misses Profit Estimates on Pharmacy Weakness, Shares Fall 7%

January 8, 2020

Walgreens Boots Alliance Inc’s (WBA.O) quarterly profit missed Wall Street estimates on Wednesday, hit by lower payments from insurers on drugs sold at its U.S. pharmacies, knocking back its shares and those of rival CVS Health Corp (CVS.N).

The company sought to reassure investors, saying it would meet its adjusted full-year profit forecast of roughly flat growth, betting on cost cuts and a harsh flu season.

Walgreens Boots Alliance Inc’s (WBA.O) quarterly profit missed Wall Street estimates on Wednesday, hit by lower payments from insurers on drugs sold at its U.S. pharmacies, knocking back its shares and those of rival CVS Health Corp (CVS.N).

The company sought to reassure investors, saying it would meet its adjusted full-year profit forecast of roughly flat growth, betting on cost cuts and a harsh flu season.

But shares fell nearly 7% to $55, dragging down those of CVS 2%, as investors worried that the pressure on reimbursement rates from insurers was likely to hurt profits further….

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Drugmakers From Pfizer to GSK to Hike U.S. Prices on Over 200 Drugs

January 1, 2020

Drugmakers including Pfizer Inc (PFE.N), GlaxoSmithKline PLC (GSK.L) and Sanofi SA (SASY.PA) are planning to hike U.S. list prices on more than 200 drugs in the United States on Wednesday, according to drugmakers and data analyzed by healthcare research firm 3 Axis Advisors.

Nearly all of the price increases will be below 10%, and around half of them are in the range of 4 to 6%, said 3 Axis co-founder Eric Pachman. The median price increase is around 5%, he said.

Drugmakers including Pfizer Inc (PFE.N), GlaxoSmithKline PLC (GSK.L) and Sanofi SA (SASY.PA) are planning to hike U.S. list prices on more than 200 drugs in the United States on Wednesday, according to drugmakers and data analyzed by healthcare research firm 3 Axis Advisors.

Nearly all of the price increases will be below 10%, and around half of them are in the range of 4 to 6%, said 3 Axis co-founder Eric Pachman. The median price increase is around 5%, he said.

More price increases are expected to be announced later this week, which could affect the median and range….

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