CER Daily Newsfeed

National Pharmaceutical Council CEO: ‘Growth in Profiteering' from Federal Drug Discount Program Utilized by California Hospitals

(4/16, Golden State Today) reports “John O'Brien, the president and CEO of the National Pharmaceutical Council (NPC), said reforms to the federal 340b drug discount program are needed to rein in the ‘growth in profiteering’ from the program. At least 174 California hospitals participate in 340b, according to 340bHealth. ‘I think reforms to the 340B program are urgently needed to rein in the growth, particularly the growth in profiteering of the program,’ O'Brien told Managed Health Care Executive. ‘This buy low, sell high program is functioning as a drug markup program by hospitals, and I think it's really moving far away from the original intended purpose of the program.’” Full

Trump Executive Order Targets Inflation Reduction Act's ‘Pill Penalty'

(4/17, Joanne Walker, The Evidence Base) reports “...A new analysis by healthcare consultancy Vital Transformation, published the day before the executive order, found that investment in small-molecule R&D has declined by 68% since the IRA was enacted and by 74% for diseases that primarily affect Medicare patients. Additional evidence from a National Pharmaceutical Council study highlights early signs that the IRA may also be dampening investment in post-approval clinical development. Meanwhile, a policy brief from the University of Chicago estimates that the law could result in 188 fewer small-molecule treatments and indications reaching the market – potentially translating into a loss of 116 million life-years.” Full

President Trump Signs Executive Order to Bring Down Drug Prices

(4/16, Skylar Jeremias, The Center for Biosimilars) reports “...The first 10 drugs chosen for the [Medicare Drug Price Negotiation Program] included 2 set to face biosimilar competition before the decade closes out (Stelara, ustekinumab; Enbrel, etanercept), which was supposed to be a disqualifying factor for being chosen. The first of the new prices chosen by CMS will go into effect in 2026, with more medications and prices to be announced in coming years. This provision has been a hotly debated topic, with some arguing that the DPNP may delay access to new medicines, reduce the incentive to invest in research and development, reduce the amount of available information to establish clinical guidelines, and encourage insurers to restrict access for the selected drugs.” Full