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Tuesday, August 21, 2018

Tenet exits UK market with sale of Aspen Healthcare to UAE hospital chain

Tenet Health’s brief foray into the UK hospital market ended with the completion of its sale of London-based Aspen Healthcare to NMC Healthcare UK Limited, announced on Monday. NMC, which is based in the United Arab Emirates, previously purchased a Spanish fertility clinic.
  • Dallas-based Tenet acquired Aspen from Welsh, Carson, Anderson & Stowe in 2015 for $215 million. The company operates nine healthcare facilities in England and Scotland.
  • The deal — terms of which were not disclosed — continues a string of divestitures as Tenet works to pay down debt and adjust to the wider industry shift to outpatient care settings and lower hospital reimbursements.

While some health systems like Cleveland Clinic and UPMC are branching out overseas, Tenet is extending its divestitures to its foreign enterprises.
At the close of the 2018 second quarter, the for-profit health system had $14.2 billion in long-term debt — down from $14.8 billion at the end of last year. Tenet officials told investors in an earnings call earlier this month that the company expects to reap $100 million in divestitures this year.
In July, Tenet inked an agreement to sell its three remaining Chicago-area hospitals to Pipeline Health and TWG Partners, a Chicago-based healthcare investment firm. That deal, expected to close in the fourth quarter of this year, will net Tenet $70 billion. The company first signaled it intention to exit the Chicago market last fall with a definitive agreement to sell MacNeal Hospital and related operations to Loyola Medicine.
Tenet could also part ways with its healthcare management subsidiary, Conifer Health Solutions. UnitedHealth is among several entities reportedly eyeing the unit, which had $1.6 billion in revenue in 2017 — about 8% of Tenet’s total revenue for the year.
For the second quarter, the system reported net operating revenue of $3.73 billion, down 8.6% from the same period a year ago. However, same-hospital net patient revenue increased 3.2% year over year to $3.43 billion. Total admissions decreased by 2.3% to 168,453, while revenue per adjusted admission grew 3.5%, due to higher acuity rates.

MC2 Therapeutics’ psoriasis drug succeeds in Phase 3 trial


  • MC2 Therapeutics on Tuesday released top-line data from a late-stage study of the private company’s lead drug candidate that demonstrated superiority in treating psoriasis over an on-market competitor.
  • MC2-01 achieved its primary endpoint in a 796-person Phase 3 trial that compared the cream to Taclonex, with nearly twice as many patients given the experimental drug achieving a minimum two-point decrease in the Physician Global Assessment score as did those on Taclonex after 8 weeks.
  • The Danish company said it plans to submit a New Drug Application with the Food and Drug Administration for its once-daily treatment for mild-to-moderate psoriasis in the first half of 2019.

MC2 is betting a focus on treatment convenience will pay off.
With MC2-01 (calcipotriene/betamethasone dipropionate), its only drug candidate in Phase 3, the top-line results versus Taclonex appear promising.
MC2-01 is a different take on calcipotriene/betamethasone, which are also the active ingredients in Taclonex. The company said current on-market versions of the drug combo are greasy, which results in low patient compliance. The company touts its delivery vehicle as a key difference, helping the chemicals absorb into the skin quicker and reduce greasiness.
The trial directly compared MC2-01 to Taclonex. Not only did the study achieve the primary goal with more patients experiencing a two-point decrease in the Physician Global Assessment score, but it hit both of its secondary endpoints on patient-reported treatment convenience and a higher percentage reduction in the severity index (mPASI).
Psoriasis is a large market, with a wide range of treatments depending on disease severity and type. Most of the recent focus has been on moderate-to-severe patients, who are typically treated with potent injectable biologics.
TNF inhibitors like Humira (adalimumab) have long had a hold on that end of the market, but new competitors like Novartis’ Cosentyx (secukinumab) and Eli Lilly’s Taltz (ixekizumab) have upped the competition.
In mild-to-moderate cases, the FDA approved Leo Pharma’s Taclonex in 2006 and gave expanded approvals for younger patients in 2008 and a foam formulation in 2015. Generics were first approved by the FDA five years ago and branded sales of Taclonex have since declined, according to a company report.
​MC2 said full data will be presented at upcoming conferences, and the company is planning an NDA filing for next year.

Pennsylvania Case Could Affect Evidence for Malpractice Defense


The Pennsylvania Supreme Court has agreed to hear a case that could affect what evidence physicians may present in defense during medical malpractice suits, according to an article published in the American Medical Association’s AMA Wire.
The appeals to the case, Mitchell v. Shikora et al., center on the question of whether evidence concerning the known risks and complications of a surgical procedure is relevant to the question of negligence.
The plaintiff suffered a bowel perforation while undergoing a laparoscopic hysterectomy. Despite the plaintiff’s objections, consent-related evidence and evidence pertaining to the known risks and complications of hysterectomies were presented at trial. On appeal to the Pennsylvania Superior Court, an intermediate-level appeals court, she claimed this evidence was unfairly prejudicial and should have been excluded as irrelevant. That court reversed the lower court’s ruling, and the surgeon appealed to the Pennsylvania Supreme Court.
The Litigation Center of the AMA and the State Medical Societies filed an amicus brief along with the Pennsylvania Medical Society and other state physician organizations in support of allowing general risks and complications evidence in medical negligence cases, arguing that it is relevant to the standard of care.

Guidance for Cervical Cancer Screening Updated


The U.S. Preventive Services Task Force (USPSTF) has updated the recommendations for screening for cervical cancer; the final recommendation statement has been published in the Aug. 21 issue of the Journal of the American Medical Association.
Joy Melnikow, M.D., from the University of California in Davis, and colleagues conducted a systematic review of the benefits and harms of cervical cancer screening for high-risk types of human papillomavirus (hrHPV) to inform the USPSTF. In addition, Jane J. Kim, Ph.D., from the Harvard T.H. Chan School of Public Health in Boston, and colleagues conducted a microsimulation model of a hypothetical cohort of women initiating screening at age 21.
The researchers found that screening can detect high-grade precancerous cervical lesions and cervical cancer, resulting in substantial reductions in cervical cancer incidence and mortality. Based on these findings, the USPSTF concludes with high certainty that the benefits of screening every three years with cytology alone substantially outweigh the harms for women aged 21 to 29 years. The benefits of screening every three years with cytology alone, every five years with hrHPV testing alone, or every five years with co-testing outweigh the harms in women aged 30 to 65 years. No significant benefits are seen for women aged older than 65 years who have had adequate prior screening or those younger than 21 years.
“Screening for cervical cancer saves lives and identifies the condition early when it is treatable,” Task Force member Carol Mangione, M.D., said in a statement. “There are several effective screening strategies available, so women should talk to their doctor about which one is right for them.”

New type 1 diabetes therapy shows promise for long-term reversal


What if instead of daily insulin injections or wearing pumps, just getting a shot every few months could reverse Type 1 diabetes for you — or your dog?
It might take ushering in healthy pancreatic cells like a Trojan horse.
The Trojan horse, in this case, would be collagen, a protein that the body already makes for building muscles, bones, skin and blood vessels. A collagen formulation mixed with pancreatic cells, developed by Purdue University researchers in collaboration with the Indiana University School of Medicine, is the first minimally invasive therapy to successfully reverse Type 1 diabetes within 24 hours and maintain insulin independence for at least 90 days, a pre-clinical animal study shows.
For diabetic pets, the next step is a pilot clinical study in dogs with naturally occurring Type 1 diabetes, which will be conducted in collaboration with Purdue’s College of Veterinary Medicine.
“We plan to account for differences from mouse to human by helping dogs first. This way, the dogs can inform us on how well the treatment might work in humans,” said Clarissa Hernandez Stephens, first author on the work and a graduate researcher in Purdue’s Weldon School of Biomedical Engineering. Findings appear in early view for a forthcoming issue of the American Journal of Physiology — Endocrinology and Metabolism.
“With giving my dog shots twice a day, I have to constantly be thinking about where I am and when I need to be home. It greatly affects my work and my personal life,” said Jan Goetz, owner of a diabetic dog named Lexi. “Not having to give these shots would mean freedom.”
Type 1 diabetes affects about one in every 100 companion animals in the U.S., including dogs and cats, and approximately 1.25 million American children and adults.
David Taylor, an Indiana resident, has struggled with Type 1 diabetes for almost 50 years.
“A Type 1 diabetes diagnosis was my 18th birthday present, and since that first insulin injection, managing diabetes has been my ‘other’ full time job,” Taylor said. “Treatment methods have improved enormously over 50 years, but they still permit no time off for the patient. Receiving an injection every few months would restore the near-normal life to me that I haven’t had as an adult — and I could retire from that full-time diabetes management job.”
Because diabetes in dogs happens similarly in humans, treatment has so far been largely the same: Both need their glucose to be monitored throughout the day and insulin to be administered after meals.
This also means that dogs and humans could potentially benefit from the same cure: A new set of pancreatic cells to replace the clusters of cells, called islets, that aren’t releasing insulin to monitor blood glucose levels.
Still, 20 years of research and clinical trials hasn’t produced an effective islet transplantation therapy because multiple donors are needed, the current method of delivering islets through the portal vein of the liver is too invasive and the human immune system tends to destroy a large percentage of transplanted islets.
Purdue researchers simply changed how the islets were packaged — first, within a solution containing collagen, and second, as an injection through the skin instead of all the way at the liver, saving patients from a nasty procedure.
“Traditionally, we transplant islets in the liver of the animal and never do it under the skin, in large part because the skin doesn’t have the blood flow that the liver has for transporting insulin released by islets. And there are a lot of immune cells in the skin, so chances of rejection are high,” said Raghu Mirmira, professor of pediatrics and medicine and director of the Diabetes Research Center at the Indiana University School of Medicine.
The team removed the need for transplanting in the liver by thoroughly mixing mouse islets, provided by Mirmira’s lab, with the collagen solution. Upon injection just under the skin, the solution solidifies, the body recognizes the collagen and supplies it with blood flow to exchange insulin and glucose.
“It’s minimally invasive; you don’t have to go to the operating room and have this infusion into the portal vein. It’s as easy as it comes, just like getting a shot,” said Sherry Voytik Harbin, Purdue professor of biomedical engineering and basic medical sciences.
The researchers tested the effects of the solution between mouse twins and non-twins to check for discrepancies. Initial studies showed if the mouse donor were a twin to the recipient, the diabetic mouse could go at least 90 days without needing another shot. If not twins, the mouse would have normal blood sugar levels for at least 40 days. Nearly all transplanted islets survived either scenario, removing the need for multiple donors to compensate for those killed off by the immune system.
As they transition to testing the formulation in naturally diabetic dogs, the researchers will explore the feasibility of transplanting pig islets or stem cells programmed to produce insulin, in hopes that either method will further increase donor availability.
The islet transplantation therapy might also have implications for better treating severe pancreatitis.
A YouTube video is available at https://youtu.be/vndD_U2gb5Q.
Story Source:
Materials provided by Purdue UniversityNote: Content may be edited for style and length.

Journal Reference:
  1. Clarissa Hernandez Stephens, Kara S. Orr, Anthony J. Acton, Sarah A. Tersey, Raghavendra G. Mirmira, Robert V. Considine, Sherry L. Voytik-Harbin. In-situ type I oligomeric collagen macroencapsulation promotes islet longevity and function in vitro and in vivoAmerican Journal of Physiology-Endocrinology and Metabolism, 2018; DOI: 10.1152/ajpendo.00073.2018

Court upholds Wolf order organizing home health care workers


Pennsylvania’s highest court ruled Tuesday that Democratic Gov. Tom Wolf did not exceed his authority when he set up a process to give some union rights to home-based workers who care for elderly and disabled people.
The state Supreme Court, divided 5-2 along party lines, ruled that Wolf’s 2015 executive order formalized a voluntary system to obtain information and discuss issues and did not impinge on the Legislature’s prerogative.
“Critically, the entire process set forth in the order is voluntary, nonbinding, nonexclusive and unenforceable,” wrote Justice Debra Todd for the majority. Todd, a Democrat, said the order “merely formalizes what the governor and executive officials could have done without an executive order.”
The court, however, wants a lower court to examine whether the administration violated privacy rights by providing the names and contact information for the 20,000 direct-care workers to unions interested in organizing them.
A lawyer for the people and groups who sued — including a woman and her daughter who cares for her — said they are worried their employment relationship will be harmed by negotiations that they had believed were not legally permitted.
“Assuming this process goes into effect, they will be the subject of requests, knocks on the door to join a collective bargaining organization,” said the attorney, James Kutz. “And they will have their employment rights negotiated by an exclusive representative.”
In a dissent , Chief Justice Thomas Saylor, a Republican, said that electing a labor organization, having the state Department of Human Services act as “an intermediary between the labor organization and consumer-employees,” and affecting work relationships “represent(s) far more than simple communications with subordinate officials.”
Shortly after taking office, Wolf issued the directive that set up a new advisory group within the Department of Human Services and let direct-care workers elect representatives to meet with the agency.
The court ruling overturned a decision two years ago by Commonwealth Court, which had described Wolf’s order as an “invalid exercise of executive authority” that invaded the relationship between workers and the patients who hire and supervise them.
A large percentage of the employee-employer relationships at issue consist of family members, with pay rates typically in the $10-an-hour range. Wolf’s order said it was not altering the ability of patients to “select, hire, terminate and supervise” their direct-care workers.
Wolf, who had argued the order did not violate state law, called the ruling a step toward his goal of improving home-based health care. He said his order did not grant the workers collective bargaining rights, force them to unionize or convert them into state workers.
“The court’s decision affirms a key part of my plan to provide choices for seniors, improve home and community-based care and attract more qualified homecare attendants,” the governor said in a news release.

Swapping brand-name combo drugs for generics could save Medicare $1B a year


Substituting 29 of the most expensive brand-name combination drugs with generic alternatives could have saved Medicare $925 million in 2016, according to a new study.
Combination drugs like Nuedexta, which marries cough suppressant and low-dose quinidine to treat spontaneous crying or laughing, ideally reduce the number of pills a patient has to take and improve adherence. But that isn’t the case when branded combination drugs are prohibitively expensive, as a new study published in JAMA highlights.
The study points out that drugmakers can extend their patents and marketing exclusivity by creating new brand-name combination products. Manufacturers tend to debut combination products at the end of a drug’s patent life and shortly before the generic version of the single active ingredient drug enters the U.S. market.
The study also calls into question “me-too” drugs that are nearly identical to existing medications. The number of combination drugs approved by the U.S. Food and Drug Administration that contain drugs already on the market has been increasing steadily from an average of 1.2 approvals per year in the 1980s to 2.5 per year in the 1990s, 5.9 per year in the 2000s, and 7 per year from 2010 through 2012.
The potential harm of me-too drugs’ financial toxicity far outweighs the minimal value they offer, said Erin Fox, who directs the Drug Information Center at the University of Utah Health system.
“The FDA continues to approve new cardiovascular drugs, however, there is little clinical evidence that the new brand-name products provide any benefit over drugs approved years prior with generic equivalents,” she said.
Researchers looked at three different sets of brand-name combination drugs: ones that had generic substitutes at identical doses, generic alternatives with different doses and therapeutically equivalent generic substitutes. The list prices of the 29 branded drugs analyzed increased anywhere from 35% to 1,759% from 2011 to 2016 while generic prices remained relatively flat.
Substituting Nuedexta alone could have saved the Medicare Part D program $189.1 million in 2016, researchers found.
The mean reported Medicare expenditure for Nuedexta in 2016 was $12.30 per pill while the lowest dose of quinidine (200 milligrams) was 26 cents. If a lower dose of quinidine were available at the price of 26 cents per pill and prescribed with dextromethorphan for the 50,000-plus Medicare Part D beneficiaries who filled prescriptions for Nuedexta, that would have saved nearly $200 million in 2016.
Edarbyclor, which is a combination of azilsartan and chlorthalidone used to treat high blood pressure, was priced at $5.36 per pill in 2016. If losartan had been substituted for azilsartan and prescribed with chlorthalidone, the cost would have been 94 cents per pill, resulting in $11 million in savings for the 11,805 beneficiaries prescribed Edarbyclor in 2016.
For a small subset of patients, there may be legitimate clinical reasons to use a specific drug rather than using therapeutic substitution, the study notes. But those cases are rare.
Branded drugs are the primary driver of the skyrocketing price of prescription drugs. Ensuring there is a healthy market of generics has been the FDA’s main strategy to lower drug costs.
Drug prices are expected to increase 4.92% next year, according to Vizient, the group purchasing and consulting company. Nearly 80% of the projected price inflation stems from drugs with no competition.
While the increase would be less than 2018’s 7.61% hike, drug costs represent some of the fastest-growing costs in providers’ balance sheets over the past several years.
Promoting generic substitution and more cost-effective alternative drugs through prescriber education and more rational substitution policies may help rein in pharmaceutical spending, researchers said.
Still, it’s often difficult for physicians to know how much something costs. They might also be up against insurance plans that only cover brand-name products.
Also, there are a number of sales reps trying to pitch the convenience of combination drugs, although the evidence that they actually improve adherence is limited, according to the study.
The FDA could also require comparative trials for me-too drugs rather than just keep approving them based on comparisons to a placebo, Fox said.
“If the new drug truly is better than what is already approved, great,” she said. “But most of the time these drugs offer no additional benefits and just end up costing more.”