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Tuesday, July 3, 2018

Sanofi beefs up diabetes pipeline to retrieve success


 Sanofi sees a more diversified pipeline driving a return to growth at its diabetes unit in the coming years and will consider acquisitions and partnerships to help boost performance, a company executive said on Tuesday.

The French drugmaker’s diabetes revenues have fallen since 2015, slumping some 11 percent last year alone, as its patent-expired Lantus insulin is being squeezed by pricing pressure in the United States, the world’s-largest health market.
Analysts said the company had been slow to work on finding successors to Lantus and had underestimated competition.
“I will not commit to a new guidance for 2019 but we are clearly optimistic for the business,” Stefan Oelrich, executive vice president for diabetes and cardiovascular at Sanofi, told Reuters.
He cited new drugs under development, the rising number of diabetes sufferers around the world and technological breakthroughs among his reasons for optimism.
Shares in Sanofi, France’s largest market capitalisation, edged 0.4 percent higher after Reuters first reported Oelrich’s comments.
The number of people with diabetes has risen from 108 million in 1980 to 422 million in 2014, according to the World Health Organisation.
Oelrich said the figure could climb up to 600 million in the next two decades. “We are facing an enormous unmet need in terms of medicines and solutions,” he said of diabetes, pointing to areas of future demand such as China and the Middle East.
Competition remains tough, with companies such as U.S Eli Lilly and Denmark’s Novo Nordisk developing new products.
ALLIANCES
Sanofi currently sells eight diabetes drugs and has four others in development. The group is also working at improving its insulin pens and is building a diabetes management platform with U.S Verily Life Sciences, an Alphabet company.
Failure to maintain growth at one of Sanofi’s main divisions and a struggle to find enough new molecules in other therapeutic areas over the past years to refill its pipeline led some investors to question the group’s strategy.
Sanofi has partially addressed these concerns this year after it agreed to buy U.S haemophilia specialist Bioverativ for $11.6 billion and Belgium’s Ablynx, which is developing an experimental drug for a rare blood disorder, for 3.9 billion euros (3.45 billion pounds).
Oelrich did not rule out future acquisitions in diabetes provided they were “a good fit”.
New partnerships, along the lines of one signed in 2015 with German biotech firm Evotec, were also “possible”, he said. Sanofi and Evotec are aiming to develop cell-modulating diabetes therapies that could reduce or eliminate the need for insulin injections. The French company has also teamed up in diabetes with South Korea’s Hanmi and U.S Lexicon.

What Care Is ‘High Priority’ for Adults in Primary Care?


Hello. I’m Dr Arefa Cassoobhoy, a practicing internist, Medscape advisor, and senior medical director for WebMD. Welcome to Morning Report, our 1-minute news story for primary care.
A survey was conducted by the Agency for Healthcare Research and Quality, with more than 2000 respondents aged 35 or older. A startling proportion—92%—didn’t receive all recommended high-priority preventive care.
The 15 services considered essential for all adults include screening for hypertension, high cholesterol, and osteoporosis. Cancer screening is also a priority, in particular for breast, colon, prostate, and cervical cancer. The list also includes screening with counseling for obesity, tobacco or alcohol use, and depression. The high-priority vaccines are influenza, zoster, and pneumococcal. Finally, adults should be counseled on aspirin use.
The most common preventive service provided to adults was blood pressure checks, and the least common was shingles vaccination.
Not getting preventive services could be a result of lack of insurance, not having a regular provider, or delayed access to care. In any case, this list may help you prioritize preventive care when the opportunity is available during a clinic visit.

‘We’ve Scared Women’: The Growth of Prophylactic Mastectomy


Oncologists are often faced with a very difficult decision: whether to follow the science and insist on an evidence-based recommendation for therapy, or acquiesce to a patient’s wish to do what they think will make them feel better, even as it contradicts published studies or even guideline-recommended care.
That is the question faced by an increasing number of breast cancer physicians as they treat women with disease in one breast who are convinced that they should have both breasts removed, despite a lack of evidence that it will do anything to improve their survival.
The number of contralateral prophylactic mastectomies performed in North America is increasing by more than 14% a year.
Whereas prophylactic double mastectomy in women at high risk of developing life-threatening breast cancer at a young age is an accepted procedure, performing contralateral prophylactic mastectomy in lower-risk women who already have the disease is much more controversial, not least because it exposes women to a markedly increased risk for complications compared with breast-conserving approaches.
Yet some estimates have suggested that the number of contralateral prophylactic mastectomies performed in North America is increasing by more than 14% a year.
How is it that the number of contralateral prophylactic mastectomies is rising steadily year by year, despite the best efforts of clinicians to persuade women to opt for less radical treatments?

The Guidelines Are Clear

When it comes to the settings in which bilateral mastectomy may be appropriate, the guidelines are consistent.
For example, the National Comprehensive Cancer Network guidelines state, in the March 2018 update to the Clinical Practice Guidelines on Oncology,[1] that women with a known or suspected genetic predisposition to breast cancer “may be considered for prophylactic bilateral mastectomy for risk reduction.”
Although the panel singles out women with breast cancer aged 35 years or younger and carriers of BRCA1/2 mutations as candidates, it underlines the importance of counseling and multidisciplinary consultations, as well as a discussion of the associated risks.
Moreover, the panel says that contralateral mastectomy in a women already diagnosed with unilateral breast cancer and treated with mastectomy is “discouraged,” whereas performing the operation in a similar woman treated with lumpectomy is “strongly discouraged.”
The American Society of Breast Surgeons goes further,[2] saying that “with the possible exception of BRCA carriers,” contralateral prophylactic mastectomy “does not appear to be associated with a survival benefit.” They say that the procedure should be reserved for women at the highest risk for contralateral breast cancer, namely those with BRCA1/2 mutations and those with a lifetime risk for breast cancer of more than 25%, as well as those who have undergone mantle-field radiation.
On the other hand, “average-risk” women, in whom the risk for breast cancer in the healthy breast is 0.1%-0.6% per year, should be “discouraged” from having contralateral prophylactic mastectomy because they “do not derive any oncologic benefit.” They emphasize not only that the operation doubles the risk for surgical complications versus treating only the breast cancer, but also that it “may negatively affect oncologic outcomes” by delaying adjuvant therapy or discouraging women from undergoing radiation therapy.
The Society of Surgical Oncology Breast Disease Working Group agrees, pointing out that there is a lack of reliable evidence to support the use of contralateral prophylactic mastectomy.[3] High-risk women should therefore be counseled on alternative management strategies, including chemoprevention and surveillance imaging, it says. Nevertheless, the group acknowledges that the decision “must be individualized,” because “there is no formula for predicting whether the patient will achieve peace of mind.”

The Evidence Supports the Guidelines

Of note, the guidelines recommendations are not based simply on expert opinions or consensus discussions, but on large data sets from dozens of studies. For example, prophylactic mastectomy in women with a BRCA1/2mutation or in those with a family history of breast cancer is backed up by numerous investigations showing that the risk of developing breast cancer is reduced by at least 90% after the procedure.[4,5,6,7]
In contrast, a recent large registry study demonstrated that for women already diagnosed with cancer in one breast, there is no improvement in survival from having both breasts removed.
As reported by Medscape, the analysis of almost 19,000 Californian women diagnosed with stage 0-III unilateral breast cancer showed that bilateral mastectomy was not associated with a mortality difference compared with breast-conserving surgery plus radiation.
Moreover, a Cochrane review of 39 studies involving almost 7400 women,[8]indicated that there was “insufficient evidence” to suggest that contralateral prophylactic mastectomy improved survival, and concluded that bilateral prophylactic mastectomy “should be considered only among those at very high risk.”

And the Doctors Agree

As a result of this overwhelming consensus, clinicians speak with one voice.
Lisa A. Newman, MD, director of the Breast Oncology Program at the Henry Ford Health System in Detroit, Michigan, told Medscape that for women with a BRCA mutation, bilateral prophylactic mastectomy can be a “worthwhile” option, because it can reduce the lifetime risk for breast cancer from 40%-85% to less than 10%.
Steven A. Narod, MD, of the Women’s College Research Institute at Women’s College Hospital in Toronto, Ontario, Canada, emphasized that the procedure nevertheless needs to be performed early, typically between 25 and 30 years of age. “Once you hit 30 [years of age] with a BRCA mutation, your risk starts to become, on an annual basis, pretty big, so if you’re going to do it, there’s no scientific rationale to wait beyond 30,” he said.
For women already diagnosed with breast cancer, Newman said that contralateral mastectomy can be “very effective as the most aggressive strategy available to prevent breast cancer” in the other breast, reducing the risk by up to 95%. She pointed out that this, however, “does not provide a guarantee against future breast cancer,” because women can have microscopic breast tissue in the surrounding areas of the body, such as the chest wall or the underarm region.
Furthermore, the overall lifetime risk of developing breast cancer in an “average-risk” woman is 12%. Prophylactic mastectomy reduces that to 2%, which, Newman said, does not outweigh the risks and psychosocial impact of the procedure.
She also underlined that early, conservative breast cancer treatment is successful in the majority of cases, making it unlikely that having prophylactic mastectomy would result in an additional survival benefit.
In other words, as Ashu Gandhi, MD, PhD, an executive member of the UK’s Association of Breast Surgery, summarized, “In the family history/BRCA group, there’s a justified reason for removing healthy breasts, but in the [lower-risk] group—the ‘woman next door’ group—there’s no clinically justifiable reason to remove both breasts.”

Yet the Numbers Keep Growing

Despite all the guidelines recommendations and data from large-scale studies, there is “definitely no question” that there has been a “growing trend of having bigger surgery” over the past 15 years, said Nora Jaskowiak, MD, an associate professor of surgery and surgical director of the Breast Center at University of Chicago Medicine, Chicago, Illinois.
“Usually, that bigger surgery is having a bilateral mastectomy,” she told Medscape, adding, “Every single week, patients who could save their breast, get radiated, and do very, very well choose instead to have bilateral mastectomy.”
This impression is borne out by a recent analysis of data on more than 230,000 US women, which showed that younger women are increasing likely to choose bilateral mastectomy plus immediate breast reconstruction rather than breast-conserving surgery, regardless of how they respond to neoadjuvant chemotherapy.
As reported by Medscape, rates of bilateral mastectomy with immediate reconstruction increased significantly between 2010 and 2014, from 8.0% to 13.2%, even while rates of pathologic complete response to neoadjuvant chemotherapy rose from 33.3% to 46.3% over the same period.
The analysis referred to earlier of 19,000 women with early-stage breast cancer underlined this trend, with the proportion of women undergoing bilateral mastectomy increasing from 2.0% in 1998 to 12.3% in 2011, or an annual increase of 14.3%.
In both studies, the rates of bilateral mastectomy rose fastest in women aged less than 40 years. All of this is despite studies showing that undergoing bilateral mastectomy can have serious consequences for women.
A study in over 18,000 women reported by Medscape showed that compared with unilateral, or single, mastectomy, contralateral prophylactic mastectomy is associated with a significantly increased risk for implant loss, a greater need for transfusion and reoperation, and longer hospital stays.
Another analysis of almost 600 women followed up around 2 years indicated that contralateral mastectomy was also linked to an increased risk for superficial nipple necrosis, wound breakdown, and infections requiring oral antibiotics, as well as an increased risk for implant exposure.[9]
Although women undergoing contralateral prophylactic mastectomy may have increased breast satisfaction from having both reconstructed at the same time, one systematic review of 22 studies suggested that the procedure can affect sexual well-being and somatosensory function.[10] Specifically, Frost and colleagues[11] found in a survey of over 480 women that contralateral prophylactic mastectomy can have adverse effects on body appearance, femininity, and sexual relationships, affecting between one quarter and one fifth of women.
Even women at high risk for breast cancer who under bilateral prophylactic mastectomy can experience psychological issues, with one study suggesting that around one half feel self-conscious, less sexually attractive, and dissatisfied with the scars.[12]

Why Do Women Choose Bilateral Mastectomy?

So why are women opting to have invasive surgery, such as contralateral prophylactic mastectomy, placing themselves at risk for adverse effects and worse psychological outcomes when the overall benefit could be as much, if not greater, with less invasive treatments?
“People have been looking at this a lot over the past 10 years,” Jaskowiak said, “and I think there are a lot of different factors.”
One study of almost 3000 women suggested that independent predictors of undergoing contralateral prophylactic mastectomy include white race, being aged less than 50 years, having undergone MRI at diagnosis, the availability of immediate breast reconstruction, and a previous unsuccessful attempt at breast conservation.[13]
Another study, including more than 3600 women, suggested that having contralateral prophylactic mastectomy was linked to a higher educational level, a family history of breast cancer, and the availability of private medical insurance, alongside younger age and white race.[14]
In their study of almost 1500 women, Hawley and colleagues[15] added undergoing genetic testing, regardless of whether the result was positive or negative, to the factors associated with contralateral prophylactic mastectomy, alongside a greater worry about recurrence. This latter finding was supported by a focus group study of women with stage 0-III breast cancer aged less than 40 years, which revealed that women who chose contralateral prophylactic mastectomy were often worried about a future breast event, despite having a low risk.[16]
Narod told Medscape that although genetic testing and the increasing acceptance of bilateral mastectomy as a procedure have both fueled its growth, the reason that has had “the most profound impact is that we’ve scared women so much.”
“There’s this high level of baseline anxiety—they’re so concerned about daily living under the stress of anxiety that mastectomy is the best way to relieve it,” he said. “In other words, there’s lots and lots of women out there—and I’ve seen plenty of them in my clinic—who are being told they have a high risk for cancer, whether it’s from a BRCA1 mutation, whether it’s from single-nucleotide polymorphisms, whether it’s from mammographic density, whether it’s from not having kids.”
They consequently feel that “it’s a matter of time, which translates into this free-floating anxiety, which translates into sleeplessness and some depression, and…other than psychotherapy or drugs, the best cure for that is bilateral mastectomy,” Narod added.
Jaskowiak agreed: “Some women are so scared of breast cancer that even if you tell them it’s not going to change their survival, they don’t want ever to go through what they’ve just gone through…an abnormal mammogram, additional tests and biopsies, and all that. They want to do anything they can to avoid having to go through all that stuff again.”
“I think there’s no question that MRI has played a role in this,” she said, pointing out that even if the results come back negative, the scrutiny of the other breast and the pain of the procedure is off-putting to women.
Everybody in the chat room says I should just have a bilateral mastectomy.
Jaskowiak believes that social media has also played a role in women choosing contralateral mastectomy. “So many people tell me, ‘Oh, well, I went into a breast cancer chat room, and everybody in the chat room says I should just have a bilateral mastectomy.'”
“I don’t know how many times I’ve been told by women about Angelina Jolie, and I have to remind them that they’re not Angelina Jolie, that they don’t have a mutation, and she never had cancer in the first place,” she added.
Yet should anxiety reduction be considered an indication for contralateral prophylactic mastectomy?
Speaking to Medscape, Gandhi said that “the woman might say, ‘Well, it doesn’t matter to you, but for me it’ll make a big difference.'” However, the question of performing mastectomy as a form of anxiety reduction “then becomes not scientific but philosophical,” he said.
“If we’re reducing the anxiety, then is that not good? On the other hand, we’re falsely reducing the anxiety because it has no effect on their prognosis; therefore, it’s bad.”
Regardless, Gandhi said that “the science is quite secure, but it’s very difficult to convince people of that, or it can be, depending on which patient you’re dealing with.”

Can the Trend Be Reversed?

For Gandhi, it is clear that the drift toward ever more contralateral mastectomies is something the medical profession “definitely should” be trying to counter.
The medical profession should be trying to do what’s scientifically true.
He said that “scientifically, it’s the right thing and the medical profession, at least, should be trying to do what’s scientifically true.”
However, how that should be achieved is another question.
Jaskowiak said that “this is something that all breast surgeons are struggling with,” adding that it will take “a lot of time and a lot of education,” involving not just surgeons but also nurses and other staff on the surgical team.
She cited the example of Katharine Yao at NorthShore University HealthSystem in Evanston, Illinois, who has developed a visual decision-making tool to explain risk. “You can tell people that they have a 2.5% chance of getting a breast cancer in their opposite breast in the next 10 years,” said Jaskowiak, “but if they see these hundred people and only two of them are lit up, that sometimes ends up helping people.”
Gandhi agreed that education is key, saying that more and more people should be told that it makes no difference. However, he feels that “the doctor telling them at the point of diagnosis is probably the least desirable point.”
“If they can hear about it before ever having a diagnosis of breast cancer, that would be much better,” he said.
One strategy Jaskowiak believes could help reduce the number of bilateral mastectomies is to be more selective about which patients undergo MRI, and another would be if insurance companies reduced the payment for them. “But it doesn’t seem very patient-centered to have this figured out by insurance companies,” she said. “It seems like doctors should be able to talk to people and educate them.”
In the United Kingdom, for example, the rate of increase in contralateral mastectomies has been consistently lower than that in the United States.
Catherine Priestley, a clinical nurse specialist at the charity Breast Cancer Care in London, United Kingdom, said that it may be assumed that “it’s got something to do with our healthcare system and the fact that the National Health Service hasn’t got the financial resources to do those sorts of things.”
“Actually, the decisions are not driven by finance; they’re driven by the risk and benefit to somebody as an individual,” she said.
“We make a lot of effort in the United Kingdom to dissuade the woman, and one of the reasons for that is, to put it very brutally, we’re not paid per case,” Gandhi said. “In a healthcare environment where you’re paid per case, although ethically you should be giving the correct medical information, there’s a part of you that may not do that.”
But when it comes down to the decision for an individual patient, Newman stressed that “[i]t is important to address the emotional needs of each breast cancer patient and, as physicians, we should respect a woman’s choice for contralateral prophylactic mastectomy.”
That is, “as long as the patient is physically fit for the procedure; understands the complications; if she is clear on the fact that her cancer survival rate/treatment needs are driven by the known cancer; and as long as she realizes that she will still require surveillance for developing a new breast cancer or cancer recurrence, despite undergoing the more extensive surgery.”
The clinicians who spoke to Medscape for this article have disclosed no relevant financial relationships.

Does the Pill Raise Risk for Diabetes After Menopause?


Past use of oral contraceptives increases the prevalence of insulin resistance and diabetes among postmenopausal women, shows the first study of its kind from South Korea.
Sung-Woo Kim, MD, from Daegu Catholic University Hospital, South Korea, presented results of the cross-sectional study here at the American Diabetes Association (ADA) 78th Scientific Sessions.
“The present study showed a definite association between the past use of oral contraceptives and an increased prevalence of diabetes in postmenopausal women, especially in those who used them for longer than 6 months,” Kim said in an interview with Medscape Medical News.
But he added that even in nondiabetic women, “use of oral contraceptives was significantly associated with higher fasting insulin and insulin resistance.”
Session moderator Julie Bower, PhD, associate professor of epidemiology at Ohio State University, Columbus, asked Kim about the timing of the development of diabetes with respect to oral contraceptive use.
“Previous studies in younger women did not find an association between oral contraceptive use and development of diabetes. Do you think that this association is something only seen later in life?” she asked.
Kim responded, “These postmenopausal women had been on oral contraceptives for longer than in the prior studies which looked at current use,” and it can take many years to develop diabetes due to insulin resistance, “so long-term observation is needed.”
Another possible explanation is that this cohort “took older versions of the contraceptives,” he suggested.

First Study to Look at Postmenopausal Diabetes

Kim explained that estrogen is an important regulator of glucose homeostasis.
And he acknowledged that two prior large-scale, prospective studies in relatively young (premenopausal) women had evaluated the effect of current use of oral contraceptives on the incidence of diabetes but found no association, although he noted that in these studies, the follow-up periods were limited.
Data for the cross-sectional retrospective study were drawn from the large, population-based, nationwide Korea National Health and Nutrition Examination Survey (KHANES) from 2007 to 2012.
Information on duration of oral contraceptive use, age at menopause and at diabetes diagnosis, use of hormone replacement therapy, hypertension, hyperlipidemia, smoking status, alcohol use, and physical activity were collected.
The study included 6554 postmenopausal women in their mid-60s. Of these, 849 had diabetes and had used oral contraceptives for longer than 6 months, while 409 had diabetes but had used the pill for less than 6 months.
In addition, fasting glucose and insulin levels were available for 3338 of the nondiabetic postmenopausal women, so the association between insulin resistance and prior contraceptive use was also examined.

Diabetes Risk Almost 35% Higher if Pill Used for >6 Months

Of women who had used oral contraceptives for longer than 6 months, 19.4% had diabetes. The percentage dropped to 14.4% for those who used oral contraceptives for less than 6 months, compared with 14.3% in the reference group of women who had never taken the pill, reported Kim.
This meant the prevalence of diabetes was around 35% higher, even after adjusting for multiple confounding factors in the postmenopausal participants who had taken the pill for longer than 6 months, compared with those who had never taken oral contraceptives (odds ratio, 1.34; < .01).
In terms of diabetes risk associated with duration of oral contraceptive use, the odds ratio for each 1-month’s use was 1.005 (< .01).
“The prevalence of diabetes showed an increasing trend of 0.5% per 1 month of oral contraceptive use,” Kim reported.
“These results suggest that prolonged use of oral contraceptives at childbearing age may be a potential risk factor for developing diabetes after menopause,” he asserted.
Taking oral contraceptives for longer than 6 months also led to a significant increase in fasting insulin levels and insulin resistance (the latter assessed using the homeostatic model of insulin resistance) in nondiabetic participants, compared with those who had never used the contraceptive pill.

Life Happens…

Bower concluded by saying, “We do know that exposures that occur earlier in life can influence health outcomes many years later, but there is lots that can happen along the way that can complicate things.”
Next steps should include “examining these and other data more closely to determine whether this increased risk is due to the oral contraceptives themselves, or other diabetes risk factors that may also be associated with, or a result of oral contraceptive use,” she added.
Kim acknowledged that the study had several limitations and added that “further investigation is necessary to clarify the long-term effect of oral contraceptives on the risk of diabetes in later life.”
Neither Dr Kim nor Dr Bower have disclosed any relevant financial relationships.
American Diabetes Association (ADA) 78th Scientific Sessions. Abstract 177-OR, presented on June 24, 2018.

Cash-strapped Titan delays Parkinson’s implant program

Titan Pharmaceuticals has been cleared to start the second phase of a trial of its ropinirole implant for Parkinson’s disease—but will have to postpone it because of financial constraints.
The drug delivery specialist said the phase 1/2 study is proceeding as hoped, and the data and safety monitoring board has recommended it start enrolling a second cohort of patients. That’s being put on hold, however, while Titan tries to build sales momentum for its under-performing Probuphine product for opioid addiction, which has consistently missed sales targets since its launch in the second half of 2016.
The ropinirole implant would be an alternative to daily oral formulations of the dopamine agonist, which is a staple of Parkinson’s therapy and is also used to treat restless legs syndrome. Titan is trying to show that delivering the drug continuously can help prevent some of the muscular side effects seen with oral dosing.

In May, Titan recovered U.S. rights to the product from commercial partner Braeburn Pharma, having booked just $25,000 in royalties earned on net sales of the drug in the first quarter, and just $215,000 in 2017. Last year, it was forced to take out a debt facility to cover development expenses, and ended the year with just under $6 million in cash reserves.
On paper, Braeburn looked like a perfect partner for Probuphine as it is an opioid addiction treatment specialist, but was hit earlier this year by an FDA rejection of its own weekly and monthly depot buprenorphine injections that will be taking up a lot of management time and forced it to slash its salesforce headcount.
Titan’s CEO Sunil Bhonsle said the company remains “very committed to adding value for our stockholders based on achievements with Probuphine and our other … products, such as our ropinirole implant. To that end, we intend to resume enrolling patients in this phase 1/2 trial as resources allow.”
The company still needs to fund a new commercial partner for the U.S., and will also be hoping that a new licensing deal for Probuphine in Europe, where the product is currently under regulatory review, will deliver some of those resources.
The partnership with Italy’s Molteni was signed in March and provides exclusive rights to the drug in Europe and some other countries in the Commonwealth of Independent States, the Middle East and North Africa. Molteni also assumed a chunk of Titan’s debt, alleviating some investors' concerns that Titan was going to struggle to pay it off.
It’s not all going completely smoothly for Probuphine in the EU, however, as the EMA has raised some questions about the dossier. Still, Molteni said it is confident it can answer those and bring the product to European markets.
https://bit.ly/2tSOSe9

No, Massachusetts, you can’t run a PBM-style Medicaid formulary, feds say


As drug pricing moves at the federal level have floundered, state officials have taken matters into their own hands. But Massachusetts is discovering there’s a limit to drug-pricing innovation.
Last year, the state asked for permission to manage its Medicaid drug coverage using a formulary, just as private insurers and pharmacy benefits managers do. With the power to negotiate with drugmakers and trade discounts for coverage, Massachusetts could have sought better pricing.
But in a letter (PDF) to MassHealth assistant secretary Daniel Tsai, Center for Medicaid and CHIP Services Acting Director Tim Hill said the state’s proposal didn’t meet CMS requirements.
Massachusetts’ plan would have allowed the state to “continue to collect manufacturer rebates,” Hill wrote, while at the same time enabling it to exclude coverage on certain drugs. Under current laws, Medicaid programs are restricted from managing coverage and must pay for all drugs that are part of a rebate agreement between drugmakers and HHS.
CMS said it will continue to work with the state “on options to test innovative drug coverage mechanisms.” Arizona has also made a proposal to manage formulary coverage.

Massachusetts’ effort is one of dozens around the country as state officials aim to lower drug costs. The patchwork of new regulations is creating a growing problem for pharma, because companies increasingly must tweak their operations to meet differing reporting and transparency requirements in different states.
California, Nevada and Oregon are among the states to have passed drug pricing measures so far. According to the National Academy for State Health Policy, states around the country are considering bills focused on pharmacy benefit managers, price gouging and more.
Maryland passed its own legislation focused on “unconscionable” generic drug price hikes, but an appeals court found the state’s approach unconstitutional in April.
Meanwhile, the Trump Administration is pushing ahead with its own plan to lower drug costs. Unveiled in May, the plan seeks to step up negotiations and competition, provide incentives for lower list prices and help lower patients’ out-of-pocket costs. Already, the FDA is highlighting regulatory abuses that stifle generic competition.
President Trump in late May said some drugmakers were planning “major” drug price reductions, but so far no announcement has been made. Instead, to start July, Pfizer implemented 100 drug price hikes, according to the Financial Times. In a note Tuesday, Wells Fargo analyst David Maris outlined dozens of other price hikes from companies such as Depomed, Endo’s Par Pharmaceutical, Acorda Therapeutics, Roche and more.

Celgene pledges to limit price hikes—or does it?


Last October, as pharma companies ranging from Allergan to Sanofi were vowing to control price hikes, Celgene raised the prices of its cancer drugs Revlimid and Pomalyst so much that the cumulative increases on the products for 2017 were nearly double what its peers promised to avoid. Now, Celgene CEO Mark Alles seems to be bowing to the pressure to control prices, pledging that the company won’t increase the price of any product at rates higher that the projected rise in healthcare inflation.
But his pledge has a gaping loophole that raises questions about whether price-hike limits will apply to Revlimid—an $8-billion-a-year blood-cancer treatment that accounted for more than half of the company’s total revenues last year.
Alles said in a statement that the company will only raise the price of any drug in its portfolio once a year, and that any price hike will be “at a level no greater than the Centers for Medicare and Medicaid Services projected increase in National Health Expenditures for the year.” That rate for this year is 5.3%, he added.
But the next sentence could raise some eyebrows among drug-price watchdogs. “Because value is a guiding principle of our pricing decisions, there may be exceptional circumstances in which additional clinical or health economic evidence demonstrates a clear and significant increase in the value of one of our medicines where this standard would not apply.”
Does Revlimid’s standing as Celgene’s biggest blockbuster qualify it for “exceptional circumstances?” Alles didn’t say in his statement, and the company did not immediately respond to FiercePharma’s request for clarification.

Alles’ pledge comes amid close scrutiny from the federal government over pricing practices in Big Pharma. The industry is taking heat from the FDA, Health and Human Services Secretary Alex Azar, and of course, President Donald Trump himself, who claimed back in May that pharma companies were preparing to offer “massive drops” in pricing.
The FDA called out Celgene by name in May when it published a list online of complaints it has received from generic drugmakers seeking samples of branded products so they can develop their low-cost copycats. Celgene topped the list with 31 complaints, including 13 related to Revlimid.
The drug isn’t expected to lose its patent protection until 2027 in the U.S., though the company has had to fend off patent challenges to hold onto that exclusivity. Analysts project sales of the product will soar past $15 billion by 2020, and Celgene continues to test it in new indications and as part of combination therapies.

Revlimid’s potential expansion into new indications and combo cocktails could certainly qualify it for “exceptional circumstances,” depending on Celgene’s definition of that term. And there’s little doubt the company needs that product to continue to boost the top line while it works through some significant challenges.
Celgene’s problems started late last year, when it abandoned an experimental Crohn’s disease drug it had acquired for $710 million and slashed its revenue forecast for 2020 from $20 billion to $19 billion. Then the FDA slapped the company with a “refuse to file” verdict on its multiple sclerosis drug ozanimod, pushing a potential approval to 2019.
Celgene has reshuffled its management team, after saying goodbye to COO Scott Smith and business development chief George Golumbeski. Then, last month, Celgene named a replacement for retiring CFO Peter Kellogg, even though he’s not leaving until next year. David Elkins, a Johnson & Johnson veteran, started at Celgene on July 1 and will take over as CFO next month, with Elkins stepping into the position of chief corporate strategy officer until his retirement.
What role will pricing take in the turnaround strategy? That was a big topic of conversation after Celgene released its first-quarter earnings in April, and Alles could very well find himself fielding more questions about it on July 26, when the company releases its next quarterly report.