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STAT+: As Humira biosimilars take over the market, CVS has created a new ploy: the drug ‘rebate credit’

STAT

The biggest enticement that large pharmacy benefit managers offer to the employers that hire them is drug rebates — a steady stream of money sent back to their clients, a tangible symbol of the discounts that PBMs are able to wrangle out of pharmaceutical companies. Continue to STAT+ to read the full story…

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STAT+: Pharmalittle: FDA commish calls U.S. drug prices ‘too high’; FDA staff says Eisai and Biogen’s Alzheimer’s drug has benefits

STAT

” FDA staff said that data from a late-stage trial of Eisai and Biogen’s Alzheimer’s drug suggests it offered a meaningful benefit to patients and safety concerns likely would not hamper its chances of a traditional approval , Reuters reports. The FDA decision is expected by July 6.

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STAT+: Nostrum Laboratories and its CEO — who once defended Shkreli price hikes — to pay up to $50 million over Medicaid rebates

STAT

A pharmaceutical company and its chief executive — who once defended Martin Shkreli for raising drug prices to controversial heights — agreed to pay up to $50 million to settle allegations of purposely underpaying Medicaid rebates.

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STAT+: FTC widens probe into pharmacy benefit managers to include group purchasing organizations

STAT

The Federal Trade Commission is widening its probe into pharmacy benefit managers and their impact on drug pricing by looking into a pair of group purchasing organizations that are owned by these industry middlemen, but are not well understood outside the industry.

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Drug Pricing and Affordability

RX Note

Why Drug Prices Are Rising? Newly developed drugs can be expensive to produce. During patent exclusivity, prices are set higher to offset the high research and development cost (up to billions of dollars). Additionally, many middlemen are involved in the drug supply chain , each taking a cut of the profits.

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STAT+: Medicare lays out the bureaucracy it will need to negotiate drug prices

STAT

WASHINGTON — New documents obtained by STAT outline how Medicare is planning to build out a sizable new bureaucratic infrastructure to handle its new power to negotiate drug prices and penalize drugmakers for price hikes.

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STAT+: Senate working group proposes 340B reforms

STAT

WASHINGTON — A bipartisan group of senators released a draft of legislation to resolve controversial disputes in the 340B drug discount program, according to documents obtained by STAT.