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Thursday, May 31, 2018

Bayer could be sharpening the ax for R&D cuts: German media


Under the oddly code-named “Super Bowl,” German pharma company Bayer is said to be reviewing its R&D locations, with fears this may lead to the swinging of an ax across some operations.
This is according to a local news report from Wirtschaftswoche, which said a Bayer spokesperson confirmed that it was reviewing some of its research locations. Its original story reported that around 1,000 positions could be up for the chop, although Bayer would not be drawn on whether this would happen, adding it reviews operations across the business all the time.
The board will be debating what will happen in the coming weeks, the newspaper said. Around 8,000 people work in R&D for the German company, which also has a hand in chemicals and other nonpharma work. This comes in the same week that its takeover of U.S. seeds group Monsanto won U.S. approval.

Late last year, and in a major reorganization, Bayer combined its pharma R&D unit under one division and under one leader. The new unit brings together all R&D activities for therapeutic areas across the board within the company’s pharmaceuticals division, including cardiology, gynecology, ophthalmology, hematology and oncology research.

This also came after Bayer spent big on R&D in 2017, paying $400 million (€340 million), and putting a potential $1 billion more on the table, to buy into Loxo Oncology’s tropomyosin receptor kinase inhibitor franchise, which is seeking FDA approval this November.
It also signed a new and potentially major research pact with Japan’s PeptiDream, using its tech to find macrocyclic/constrained peptides against a whole load of targets.

Focusing on ALS, Mitsubishi Tanabe America Targets Access, Development


It has been one year since Mitsubishi Tanabe Pharma America’s (MTPA) Radicava was approved as the first treatment for amyotrophic lateral sclerosis (ALS) in more than 20 years. Since its approval, MTPA has been aggressive in its efforts to get the medication in the hands of ALS patients. The drug officially rolled out to U.S. patients in August 2017.
As of April, about 2,500 patients in the United States have received treatment with the newly approved therapeutic. Also called Lou Gehrig’s disease, ALS is a rare disease that attacks and kills the nerve cells that control voluntary muscles. The Centers for Disease Control and Prevention estimates that approximately 12,000 to 15,000 Americans have ALS, with about 5,000 to 6,000 diagnosed annually. The average life expectancy of an ALS patient is approximately three to five years after diagnosis and only 10 percent of patients survive for more than 10 years. Death usually is a result of respiratory failure.
Radicava is not a cure for ALS, but it slows decline in the daily functioning of ALS patients. The drug was approved based on Phase III clinical trials that demonstrated patients taking the drug had a slower decline in physical function than those taking a placebo. Data demonstrated patients who received Radicava for six months experienced significantly less decline in physical function — by 33 percent.
Kevin O’Brien, MTPA’s vice president of market access, told BioSpace that the rollout of Radicava has been a bit slow, primarily due to hurdles with insurance. Another issue the company has diligently worked on since the FDA approval is the establishment of dosing centers or approval for in-home infusions, O’Brien said as ALS Awareness Month came to an end.
“For a lot of patients finding site of care was difficult. Now there are more than 1,200 infusion centers across the U.S. We’ve tried to hit every hot spot across the country,” O’Brien said.
O’Brien added that the company is anticipating opening more infusion centers to assist ALS patients with their treatments. The company is also working with the Veterans Administration to help the men and women in the armed forces who develop ALS. There are an estimated 3,600 ALS patients in the military. Research has shown that those who serve in the military, regardless of branch or time of service, are more susceptible to the disease. Yet, no one knows why. But, O’Brien said MTPA is doing all it can to ensure those patients have access to Radicava.
Not only is O’Brien focused on increasing access to Radicava, he said the goal over the next six months is to reduce the time it takes between the diagnosis of ALS and the first infusion of the therapy. O’Brien said the goal is for the time frame to be about 30 days, which would be a significant reduction from the more than two months it usually takes. Since they undertook the mission, O’Brien said they have been able to reduce the time it takes for treatment to less than 40 days.
“We’re doing all we can to help the patients. We want to get them diagnosed and into therapy as quickly as possible,” he said. “Since the launch of Radicava it’s been an evolution of learning.”
For O’Brien and the rest of the MTPA family, their days revolve around helping patients. Debbie Etchison, head of public affairs for MTPA, said employees at the company come to work with a sense of purpose each day, especially since the approval of Radicava.
“It makes getting out of bed every day an easy thing because everything we do is focused on the patient,” Etchison said. O’Brien agreed, adding the company measures everything in patients. O’Brien said in his annual review earlier this month he was not asked how he had helped the company achieve its goals, but rather his superiors wanted to know how many patients he had been able to help and how that number could be increased over the next year. He noted that he and other executives often meet with ALS patients to ascertain how they can improve point of care among their target patient population.
“That’s how we live here. We make sure we’re accessible. We’re about patients and how to help them. We’re not talking about the drug, we’re talking about the patients,” he said. “ALS, it’s one of those diseases, the diagnosis has to be the worst thing you can ever get in your life. The disease just takes everything away from these folks.”
While the company continues to improve patient access for Radicava, Etchison said MTPA is continuing to invest in developing treatments for ALS, with hopes for an eventual cure. In April, MTPA’s parent company Mitsubishi Tanabe Pharma Corporation worked in partnership with Amgen to back the launch of Cambridge, Mass.-based QurAlis, which is developing three therapeutics targeting subsets of ALS. QurAlis is currently developing therapies for three different forms of ALS with known disease mechanisms which include: a transformative device to remove toxic proteins; a drug that mediates overactive neurons and prevents them from dying; and a drug that restores a dysfunctional waste clearance system in cells. Success with any of these therapies will have a tremendous positive impact on ALS patients and their families, the company said when it launched.
“Our commitment to the community goes above and beyond Radicava. We’re investing in the search for a cure,” Etchison said.

Celgene names David Elkins CFO


Celgene (CELG) announced the hiring of David V. Elkins as Executive Vice President, Chief Financial Officer. Elkins will join Celgene on July 1, 2018, and become CFO effective August 1, 2018. Elkins will succeed current CFO Peter N. Kellogg, who will become Celgene’s EVP, Chief Corporate Strategy Officer until his retirement, planned for mid-2019. Elkins joins Celgene from Johnson & Johnson (JNJ), where he was Worldwide Vice President and CFO for Consumer Products, Medical Devices and Corporate Functions.

Mirati has new data on kidney cancer med for ASCO


Mirati Therapeutics announced that new data from the ongoing Phase 1b clinical trial of single agent sitravatinib will be presented at the 2018 American Society of Clinical Oncology, or ASCO, annual meeting. The data will highlight initial results from the cohort evaluating sitravatinib in the treatment of patients with metastatic renal cell carcinoma, or mRCC, who are refractory to anti-angiogenic therapy.

Best Buy sees opportunity in health technologies for seniors

  • Consumer electronics giant Best Buy is looking to healthcare and the elderly to help fuel future growth, its CEO told investors on an earnings call May 24.
  • Hubert Joly said the company is “testing a service called Assured Livingto help the aging population stay healthy at home with assistance from technology products and services.”
  • The company, which already sells medical alert systems and senior-friendly phones, sees health and wellness as key business focus along with entertainment, productivity and communication, Joly said.

Remote monitoring for the elderly is not a new idea, but getting technology to seniors on a large scale could address growing demand for devices and services that help older people age in place.
More than 10,000 Americans are aging into Medicare every day. At the same time, nearly 90% of older Americans want to stay in their homes as long as possible and 80% expect to live the rest of their lives in their current residence, according to AARP.
Swelling in numbers of elderly has sparked a number of startups, as well as interest from larger tech companies. Technologies that promote aging in place include remote sensors, connected scales and blood pressure cuffs, apps for medication adherence, voice command technologies and telemedicine.
For example, MobiHelp makes the Anywhere Help Button, a mobile GPS emergency response system that allows users to call for help anywhere and anytime just by pressing a button. Another startup, Reemo, uses wearables and smart home technology to capture a person’s steps, heart rate, sleep patterns and other motions in real-time and relay the information to caregiver or provider through a dashboard.
“A lot of healthcare is going to move to digital medicine through the home platform, Arta Bakshandeh, senior medical officer at Alignment Healthcare, told Healthcare Dive in a recent interview.
Best Buy’s foray into healthcare echoes other recent efforts to reach more patients by combining health services with popular retail locations. CVS Health and Aetna have pitched their $69 billion merger plan as a way to streamline the patient experience and expand access to high-quality care in convenient, low-cost settings.
Meanwhile, Walmart is reportedly in early talks to acquire Humana, a move that could create cost-effective opportunities especially in underserved rural areas. Humana is the second largest provider of Medicare Advantage plans, with 3.5 million enrollees and 4.9 million in Part D drug plans. Walmart — with 1.5 million employees and more than 5,000 stores — already operates pharmacies and primary care clinics, and is working on offering laboratory tests as well.

CMS’ Verma: Data blocking will not be tolerated


Since data could be exchanged, providers have been accused of hoarding it.
Government pressure and business incentives may be changing that.
CMS Administrator Seema Verma told a packed room of health care execs earlier this year that it would no longer be tolerated.
“Let me be crystal clear, the days of finding creative ways to trap patients in your system must end. It’s not acceptable to limit patient records or to prevent them and their doctor from seeing their complete history outside of a particular healthcare system,” she said speaking at HIMSS in March.
In addition, within months the Office of the National Coordinator, as mandated under the 21st Century Cures Act, will issue a proposed rule to set ground rules to prevent data blocking. Efforts tackling the issue couldn’t have come at a better time.
At the same time, digital health startups are beginning to accrue value and build out robust data sets. From platform companies such as Vida Health to digital therapeutics like Omada Health, big data is becoming more important than ever. Roche, for example, was willing to shell out $1.9 billion to acquire oncology EHR company Flatiron Health, largely for its data set.
As these tools and datasets proliferate, providing interoperability will be an important milestone for transitioning to the next stage of American healthcare delivery, Allscripts CEO Paul Black said at HLTH 2018 earlier this month.
Data sharing among disparate parties will be critical to realize the benefits of integrating new tools into the clinical setting. Companies may be more inclined to share under the pressure of government and business incentives.

The cause for concern

The universe of digital health companies is expanding. Digital health funding for the first quarter of this year hit a new high of $162 billion across 77 deals, up from $141 billion in the same period last year, according to Rock Health. Among the top value propositions was disease monitoring as well as consumer health information and R&D catalysts.
What many of these startups have in common is the need for aggregated data that cross the silos of multiple health record systems. Getting at that data can be difficult, if not impossible at times, but interconnectedness is imperative if the next generation of digital health solutions are to realize their potential. “It’s been improving a little bit over time, but traditionally it’s been the case it’s very hard to get the data out of the health record system,” Bill Evans, managing director of Rock Health said in an interview.
Stephanie Tilenius, CEO of Vida Health, acknowledges the risk of data hoarding.
“Over the past few years, IoT and smart sensors have led to an explosion of connected devices and, in turn, an explosion of different and closed (or blocked) data formats,” she wrote to Healthcare Dive in an email. Digital health firms that aggregate data are all working to increase data sharing, but each is responding in its own way, “which is endemic to the problem itself,” she wrote.
Vida provides personalized health coaching and programs for patients who can then share data and insight summaries with providers.
Interoperability and data sharing with competitors is often “an afterthought,” says Dan Wilson, founder and CEO of Moxe Health, which facilitates bidirectional movement of clinical data.
“All of a sudden you’re big, you have a lot of data, people are asking for access to it and businesses, consistently, feel they’ve earned the right to that proprietary advantage,” he said.
Evans said he sees Verma’s admonition as a call to EHRs to break down their silos so innovators can aggregate data in new ways to improve health and healthcare processes. The challenge is getting established companies to tear down their walls.

Data sharing importance increasing to manage conditions

With the move to value-based payment models, providing clinical or predictive patient insights to providers and insurers can increase the importance of a dataset.
At Omada Health, an individual’s percentage of weight loss is reported to substantiate outcomes-based billing, and health information is provided back to participants. Users also have access to information through a real-time, online dashboard, Lucia Savage, chief privacy and regulatory officer at diabetes coaching firm Omada told Healthcare Dive in an interview.
Meanwhile, Moxe also works with providers and insurers to facilitate the exchange of clinical data to support billing claims. But it doesn’t stop there, Wilson said. As insurers accrue data, they have a much broader view of what it might mean for gaps in care.
At UPMC, reducing information blocking meant creating a data extraction layer in its network that “allows for us really to have data as an asset across our organization and allows for us to create a rich ecosystem of innovations on top of the data that are adherent to national standards and FHIR-ready,” Rasu Shrestha, chief innovation officer at the University of Pittsburgh Medical Center, told Healthcare Dive in an interview.
UPMC is pushing this framework with some of its portfolio companies at its innovation arm UPMC Enterprises, such as Health Catalyst. Through a process called late-binding architecture, researchers and providers can extract information and enable clinical and operational applications to occur atop the Health Catalyst platform, Shrestha said.
“At the end of the day, that really is what the conversation should be about,” he said. “It’s less about the data and more about the knowledge and the information you garner … and making those attributes then actionable at the point of decision-making.”

Breaking down traditional barriers

For EHRs, companies like athenahealth and Allscripts realized fairly early on that they needed to focus on an open platform, notes Wilson. But others have been slower to do so. In some cases, vendors have turned it into a business model with fees to gain access to data — usually in the 15% to 30% of revenues level, he said.
“I would like to see more focus on APIs that make data available,” Wilson said.
He would also like to see a more supportive environment for those who speak out about data blocking. “Everyone’s afraid of doing it,” Wilson says. “Almost by definition, the people who are most impacted are the ones with the least amount of power in the market. And so if you come forward as your standard whistleblower and you don’t have the right protections, it’s going to be very costly.”
Those costs can be the death knell for an early startup. It can take months to work through an allegation of data blocking, during which investors and customers are likely to shy away. “As a result, people are suffering in silence trying to figure out how to persevere and make something happen,” Wilson said.
The 21st Century Cures Act, signed into law by former President Barack Obama, encourages interoperability of EHRs and patient access to personal health data and discourages information blocking. President Donald Trump’s administration last October issued guidance for providerson when and how to attest they are not engaged in data blocking and are willingly sharing information with patients. Under the Cures Act, providers and EHR vendors that engage in data blocking could face fines of up to $1 million per violation. The guidance is aimed at providers participating in the Quality Payment Program’s Merit-based Incentive Payment System.
In addition, CMS in its hospital inpatient payment program proposed rule in May called for feedback on whether issuing a new condition of participation for hospitals to “require electronic exchange of medically necessary information” would help to reduce information blocking.
Some involved in the digital health world would like to see more clarity from the government on what is and is not allowable in terms of data exchange. “If I had a magic wand, it would be that HHS doubles down on helping provide industry guidance around how to deal with the emerging complexity,” Evans says.

Here’s why digital health companies are likely to share

As the digital health field matures, companies are moving beyond fitness trackers and basic monitors to tools that seek to offer deeper insights into an individual’s personal health status and help inform care decisions. The challenge isn’t so much about who has access to the data, but what new and interesting ways developers can use the same data. The common need for data access is fueling a move away from proprietary file formats and any perception of data blocking, some observers say.
“Startups that are worth their weight in salt have totally adopted a much more open architecture and … business model [that] is not tempered on blocking of information,” Shrestha said. “Their business model is creating value out of insights that can be generated from the data.”

Readmits may be higher for bundled care payments: Avalere

  • Readmission rates for conditions that are a part of the Bundled Payment for Care Improvement Advanced (BPCI-A) payment model can vary by up to six times, according to a new report from Avalere.
  • The study found that 90-day readmission rates in 2017 were highest for certain liver disorders (43%) and lowest for major joint replacements of upper extremity (7%). The average across the conditions studied was 26%. Rate of readmission is one of seven quality measures the CMS bundled model uses to determine eligibility for bonus payments.
  • The first group of BPCI-A participants will begin the model on Oct. 1, and the deadline for the second cohort of applications is Aug. 1.

Bundled payment models are a focal area for the movement toward value-based reimbursement. Although data show mixed success in reducing costs and improving health outcomes, multiple payers and providers are pursuing these models in the hopes of finding a successful and scalable method.
Avalere said that organizations participating in BPCI-A could use the readmission rate information to focus improvement efforts on certain conditions, and not necessarily surgical episodes typically targeted in readmissions. “In our experience, organizations that more carefully evaluate and select episodes for participation tend to be more successful in episodic bundled payment programs,” Erica Breese, director at Avalere, said in a statement.
CMS launched the much-anticipated BPCI-A in January as a voluntary model that includes 32 clinical episodes, three of which are outpatient. It builds off the original BCPI, which the Center for Medicare and Medicaid Innovation (CMMI) began in 2013 and has grown to include more than 400 organizations.
The original BPCI produced scattered results, and evaluation has been difficult because of numerous variables and options available under the model. One outcome CMS will hope not to reproduce was a relative lack of interest. Only 12% of eligible hospitals signed up for BCPI and nearly half of them dropped out for at least one condition, according to a report from JAMA.
One overall sticking point for bundled programs is whether they need to be mandatory to show improvement. It was no surprise that CMS chose to leave BCPI-A as voluntary, considering current management’s focus on avoiding excessive reporting burdens, but some policy experts still believe forced participation is necessary.
As more groups join BPCI-A, there is also concern it will overlap with other advanced payment models, particularly the Medicare Shared Savings Program (MSSP). If CMS does not address the issue, there could be “far-reaching impact on provider incentives and behavior,” according to a Health Affairs blog post last month.
That same worry was echoed recently in comments on CMMI’s proposal for direct provider contracting. The American Medical Group Association suggested CMS focus on fixing MSSP’s flaws instead of pursuing other, potentially redundant models.
Healthcare organizations are realizing the question they face is not whether to participate in value-based payment, but what method will work best for them.
As Darcie Hurteau, senior director of informatics at the policy and analytics firm DataGen told Healthcare Dive earlier this year, “This is the direction the industry is headed in, and practices will need to pay attention if they want to stay competitive.”