Bussiness

InnovationRx: The FTC Is Going After Pharmacy Middlemen

Published

4 months ago

July 10, 2024

Admin

InnovationRx: The FTC Is Going After Pharmacy Middlemen

InnovationRx is your weekly digest of healthcare news. To get it in your inbox, subscribe here.

Federal Trade Commission Chair Lina Khan

Getty Images

The Federal Trade Commission is taking aim at the middlemen in the prescription drug supply chain who help determine the prices a patient pays at the pharmacy counter. The federal agency released a report this week detailing how just three pharmacy benefit managers – CVS Health’s Caremark, Cigna’s Express Scripts and UnitedHealth’s Group OptumRx – represent 80% of prescription drugs filled in the U.S. The FTC report said the market has become highly concentrated, as smaller companies were taken over by the nation’s largest health insurers and retail pharmacies, giving them significant power over access and pricing.

In a statement, FTC Chair Lina Khan alleged “dominant” PBMs patients “can hike the cost of drugs—including overcharging patients for cancer drugs.” Around 30% of Americans report rationing or skipping doses of their prescribed medication due to costs, according to the FTC. Today The Wall Street Journal reported that the FTC plans to file lawsuits against the three biggest PBMs “over their tactics for negotiating prices for drugs including insulin.” As he campaigns for a second term, President Biden has frequently mentioned how the Inflation Reduction Act, which was passed in 2022, capped the out-of-pocket cost of insulin for seniors on Medicare at $35. Neither Caremark, Express Scripts nor OptumRx immediately responded to requests for comment from Forbes.

Cancer Patient Can Speak Again After First-Of-Its-Kind Voice Box Transplant

Mayo Clinic

A Massachusetts man can speak again after his cancerous larynx was removed and replaced in a rare procedure, the Mayo Clinic announced Tuesday, marking the world’s first successful larynx transplant in a patient with cancer.

The patient, who was diagnosed with a rare form of laryngeal cancer, was previously unable to speak or swallow and breathe normally. Four months after the surgery, he can speak again, swallow and breathe on his own

Pipeline & Deal Updates

Venture Capital: Flagship Pioneering announced that it’s raised $3.6 billion to support creation and investment in potentially up to 25 new healthcare startups.

Biotech: Lilly is acquiring biopharmaceutical firm Morphic Holding in a deal valued at $3.2 billion. The firm was cofounded by billionaire scientist Timothy Springer, whose fortune jumped $200 million on the news.

Dermatology: The FDA approved topical skin therapy roflumilast, marketed by Arcutis as Zoryve, for the treatment of atopic dermatitis in patients over the age of 6.

Prenatal Care: Sera prognostics announced a study finding that use of its prenatal tech reduced severe neonatal morbidity and mortality by 18% and reduced average hospital stays by 7 days by allowing timely interventions.

In-Home Care: HarmonyCares, which provides in-home longitudinal care, raised a $200 million investment round.

Antibody-Drug Conjugates: Myricx Bio, which is developing antibody-drug-conjugates to fight certain cancers, raised a $114m series A round co-led by Abingworth and Novo Holdings.

GOP Platform Endorses Legal Theory That Could Lead To A National Abortion Ban

AFP via Getty Images

The Republican Party’s policy platform for the November election got rid of an explicit, longstanding call for a national abortion ban—but abortion rights advocates warn the GOP could still try to outlaw the procedure. That’s because the platform still endorses “fetal personhood,” a legal theory that could be even more far-reaching–not only potentially banning abortion, but also in vitro fertilization and certain forms of birth control.

Other Healthcare News

Colorado health officials confirmed a rare human case of bubonic plague this week.

After the Supreme Court thwarted OxyContin maker Purdue Pharma’s bankruptcy settlement, the billionaire Sackler family stands to face fresh litigation if the parties can’t figure out a new settlement.

Eli Lilly’s popular obesity injection Zepbound trounces Novo Nordisk’s Wegovy when it comes to shedding weight, according to a new study. Plus, new research suggests the drugs known as GLP-1 agonists could also help protect against a variety of cancers, adding to mounting evidence the injections offer numerous other health benefits.

The lone star tick, which can cause alpha-gal syndrome, or red meat allergy, as well as other dangerous viruses, is spreading across the United States beyond its usual habitat in the southeast, per a new study.