Search This Blog

Thursday, April 11, 2019

Managed-Care Stocks Tumble as HHS Chief Adds to Policy Worries

Health insurers led U.S. stocks lower as investors fled the sector plagued by increasing political risks from Washington.
The S&P 500 Managed Care Index fell 4 percent on Thursday, to the lowest since Jan. 8, paced by declines in UnitedHealth Group Inc., WellCare Health Plans Inc. and Centene Corp. Health and Human Services Secretary Alex Azar on Thursday renewed his call for large employers to ensure their workers get prescription drug rebates at the pharmacy counter. The agency has proposed the requirement for Medicare’s Part D drug program.
“It’s increasingly clear that both the Trump administration and Congress are eager to shine more light on healthcare pricing and change the system so that more of the rebates flow directly to the patient (or back-end rebates are eliminated in favor of front-end discounts),” Bloomberg Intelligence analyst Brian Rye said in an email.
Managed care stocks fell to lowest since January amid political headwinds
Health insurance companies have shed tens of billions in market value over the past two months amid proposals in Washington that threaten to create a long period of uncertainty for payers. Following Medicare for All proposalsand the lawsuit challenging the constitutionality of the Affordable Care Act, many generalist investors have lost conviction in managed care, Jefferies health-care strategist Jared Holz said.
“The constant barrage of policy speak from both parties, while unlikely very impactful near term is not what the sector needs as far as an inspiration source,” Holz wrote in a note.
Bulls are hoping for a respite next week when UnitedHealth kicks off earnings season for the sector on Tuesday.
“Uncertainties around drug rebates and Medicare for All have put a damper on otherwise strong performance and guidance” since the fourth-quarter results, Morgan Stanley managed-care analyst Zack Sopcak said in a note to clients.
He expects UnitedHealth’s earnings to set the tone for the group, as usual, but he said that commentary on the Medicare Part D proposed rule and progress on point-of-sale rebate initiatives may be more important for broader health-care sentiment.

Qiagen says prelim data shows effective pathogen detection by QIAstat-Dx

Qiagen announced new data of the QIAstat-Dx Meningitis / Encephalitis panel. The panel is in late stage development and being prepared for CE-IVD commercialization in the second half of 2019 for use on the QIAstat-Dx multiplex syndromic testing system. The preliminary data demonstrates effective detection of the most prevalent central nervous system pathogens with high analytical sensitivity and specificity levels, including the discrimination of clinically relevant strains and subtypes, the company said. This new test will expand the QIAGEN menu of diagnostic panels for syndromic testing, adding to CE-IVD marked DiagCORE tests for respiratory and gastrointestinal infections that were launched in 2018. The U.S. regulatory clearance of QIAstat-Dx is expected in mid-2019, and a deep menu of additional tests covering infectious diseases and other therapeutic areas is in development. “Our new QIAstat-Dx panel meets an urgent need for rapid and reliable diagnosis of meningitis and encephalitis infections, and will enable clinicians to select appropriate therapies in a timely manner. The panel delivers valuable insights with high sensitivity and specificity to identify these life-threatening syndromes,” said Thierry Bernard, Senior Vice President and Head of QIAGEN’s Molecular Diagnostics Business Area. “Laboratories in Europe are embracing the new platform and the power of syndromic testing based on proven PCR technologies to identify syndromic conditions with the simplicity of a true Sample to Insight solution. Demand for syndromic testing is growing rapidly, and we are developing a deep menu of assays to significantly increase the utility of QIAstat-Dx for an increasing range of applications.”
https://thefly.com/landingPageNews.php?id=2891585

Eiger’s Peginterferon Lambda for HDV shows 36% durable virologic response

Eiger BioPharmaceuticals announced end of study post-treatment results of the Phase 2 LIMT HDV Study reported as an oral late breaker presentation at The International Liver Congress 2019 in Vienna, Austria. LIMT HDV enrolled a total of 33 patients with chronic Hepatitis Delta Virus. Objectives of the study were to demonstrate comparable activity and improved tolerability of peginterferon lambda – Lambda – versus historical peginterferon alfa in HDV-infected patients. Peginterferon Lambda is a first-in-class, type III interferon in development for the treatment of HDV. “The durable virologic response observed 24 weeks post-treatment with Lambda may be a meaningful endpoint for discussions with regulatory agencies,” said David Apelian, COO and Executive Medical Officer at Eiger. “Lambda is now being dosed in combination with Lonafarnib and Ritonavir in HDV-infected patients in the Phase 2 LIFT study at the National Institutes of Health, and we look forward to end of treatment data later this year.” At Week 72, a durable virologic response at 24 weeks post-treatment for Lambda 180 mug was achieved in 5 of 14, which compares favorably to historic rates for peginterferon alfa 180 mug. Common on-treatment adverse events included mild to moderate flu-like symptoms and elevated transaminase levels. Patients showed no symptoms of decompensation, no clinical abnormalities, no ascites, no worsening of synthetic function, and all patients responded favorably to dose reduction or dose discontinuation. Eiger licensed worldwide rights to Lambda from Bristol-Myers (BMY). Lambda is an investigational agent and not yet approved for any indication. Eiger has received Orphan Designation and Fast Track Designation by the FDA for Lambda in HDV.

Recro Pharma to present IV Meloxicam safety, efficacy data

Recro Pharma, Inc. (Nasdaq:REPH), a specialty pharmaceutical company with a high-performing revenue generating contract development and manufacturing (CDMO) segment, today announced a moderated poster presentation highlighting new intravenous (IV) meloxicam data at the 44th Annual Regional Anesthesiology and Acute Pain Medicine Meeting, hosted by the American Society of Regional Anesthesia and Pain Medicine, taking place April 11-13, 2019, in Las Vegas.
The abstract was a highly scored submission, and was selected for a five minute oral presentation. In this study, the researchers conducted a network meta-analysis (NMA) assessing the safety and efficacy of IV meloxicam relative to other IV non-opioid analgesics for moderate to severe pain. The analysis was conducted by comparing Recro Pharma’s IV meloxicam data to 17 randomized controlled clinical trials evaluating several non-opioid analgesics, including acetaminophen, ketorolac, placebo combined with a non-opioid and placebo combined with an opioid, across three procedure categories: abdominal, bunionectomy and orthopedic.
A pooled analysis of pain outcomes across all bunionectomy procedure studies and time points demonstrated a probability of 84% that IV meloxicam produced the largest sum of pain intensity difference (SPID). A pooled analysis of pain outcomes across all abdominal procedure studies and time points demonstrated a probability of 72% that IV meloxicam produced the largest SPID. Both of these outcomes are consistent with the Surface Under Cummulative Ranking Curve (SUCRA) rankings. IV meloxicam could not be evaluated against other non-opioid IV analgesics in orthopedic procedures due to a lack of reported pain score data for IV meloxicam in orthopedic procedures. IV meloxicam was associated with a pooled 18% reduction in morphine (milligram equivalent) utilization (range 25% to 12%), compared to a 16% reduction for ketorolac and a 14% reduction for acetaminophen.
For safety, IV meloxicam was associated with lower pooled odds of gastrointestinal opioid-related adverse events (ORADEs) (OR=0.72; 95% credible interval [Crl] 0.66-0.78) and respiratory ORADEs (OR=0.51; 95% Crl 0.42-0.59). IV meloxicam offered no relative benefits with respect to adverse events (AEs) not related to opioids.
“These data show that IV meloxicam is associated with lower pain, morphine utilization and opioid-related AEs postoperatively across a number of important clinical comparisons,” said Stewart McCallum, M.D., F.A.C.S., Chief Medical Officer of Recro Pharma. “We continue to believe that IV meloxicam would be an attractive non-opioid pain management candidate for the hospital marketplace, and we are committed to working closely with the U.S. Food and Drug Administration to bring it to the physicians and patients who could benefit from it.”

AmerisourceBergen Ready to Back Move of Drug Rebates to Point-of-Sale Discounts

AmerisourceBergen  a global healthcare solutions leader, in concert with their industry trade association the Healthcare Distribution Alliance, has proposed a comprehensive framework that would support the proposed move from the current rebate system to point-of-sale (POS) discounts in response to the Department of Health and Human Services’ (HHS) Notice of Proposed Rule Making regarding the Removal of Safe Harbor Protection for Rebates Involving Prescription Pharmaceuticals. AmerisourceBergen supports policies that lower out-of-pocket costs for patients and stands ready to support a transition to a patient-centered model with distributors serving as chargeback administrators for a January 1, 2020 start.
“At AmerisourceBergen, we are acutely aware of the access issues facing American patients and are deeply committed to reforms that realign incentives in the best interests of patient health,” said Steve Collis, Chairman, President & CEO of AmerisourceBergen. “As the connector of pharmaceutical innovators and healthcare providers, distributors are uniquely positioned to support the seamless and efficient delivery of POS discounts to Medicare beneficiaries. We come prepared with solutions that are fair, efficient and transparent, and that’s why we believe we are best positioned to lead this transition.”
The Case for a Distributor-Facilitated Model
  • Relationships Built on Trust: Pharmaceutical distributors have strong service-oriented relationships, built on fairness and trust, with their pharmacy customers and manufacturer partners. These longstanding relationships allow distributors to approach this reform in a fair and equitable way to meet the needs of all stakeholders, and most importantly, create a positive impact for patients. Further, pharmacies are important customers for wholesalers, so it is in distributors’ best interest to ensure that pharmacies promptly receive POS discounts. In addition, distributors have no role in setting the price of brand pharmaceuticals and do not influence formulary decision-making.
  • Proven Experience and Infrastructure: Distributors and manufacturers already have the requisite building blocks in place to operationalize chargeback amounts due for discounts applied at the point of sale. Distributors and manufacturers manage and maintain complex contract administration and chargeback systems today that enable manufacturer discounts for health system customers. In 2018 alone, AmerisourceBergen exchanged over 300 million chargeback transactions with manufacturers with greater than 99% successfully completed in three business days or less. Extending this proven chargeback system to handle POS discounts would be a natural evolution.
  • Commitment to Transparency: Chargebacks would be processed with full visibility and auditability by all stakeholders. Further, given the existing direct financial relationships with both manufacturers and providers, distributors could facilitate chargebacks through adjustments to their accounts payable to manufacturers and accounts receivable from pharmacies, resulting in cashless transactions.
To further operationalize, pharmaceutical distributors would, directly or indirectly from their customers, secure the requisite chargeback detail from the POS claims and provide an efficient and effective process for manufacturers to make pharmacies whole, meeting or exceeding the mandatory 14-day prompt pay requirement.
“We are ready to play a role, and hope our suppliers, dispensing partners and industry peers will join us in pursuing a distributor-facilitated model that would no doubt improve transparency and deliver more value directly to patients,” said Collis.
Read AmerisourceBergen’s response to HHS’ proposed rule here.

5 worst Dow stocks of Q1

Walgreens Boots Alliance (WBA) leads the list of the worst Dow Jones stocks of the first quarter, followed by UnitedHealth (UNH), Pfizer (PFE), DowDuPont (DWDP) and Coca-Cola (KO). Their losses come as the overall Dow Jones Industrial Average surged to one of its best first quarters in years.
The Dow Jones stock index jumped 11% in Q1. But shares of Walgreens, UnitedHealth, Pfizer, DowDuPont and Coca-Cola nursed losses year to date, putting them at the bottom of the 30-stock index.

Worst Dow Jones Stocks No. 1: Walgreens

A quarter of strong, albeit choppy stock market performance has passed the beleaguered drugstore chain right by. Walgreens stock lost 7.4% in Q1.
Walgreens seemed on the up and up over the first two months of the quarter, but a comment from CFO James Kehoe sent shares tumbling 6% March 1.
Reimbursement rates face headwinds, Kehoe suggested, raising worries about the company’s ability to meet earnings guidance.
The retailer is slashing $1 billion in costs as it confronts lower store traffic, higher drug costs, and the emergence of Amazon (AMZN) as a pharmacy rival.
Walgreens replaced General Electric (GE) on the Dow Jones index last year.

Worst Dow Jones Stocks No. 2: Pfizer

Pfizer stock dropped 2.7% in Q1.
The pharmaceutical giant delivered an earnings beat in January, but weak guidance has weighed on Pfizer stock.
In early March, shares were rocked after Ascendis Pharma (ASND) announced its growth hormone proved superior to a Pfizer drug.
Pfizer and GlaxoSmithKline (GSK) are also in the process of combining their consumer health divisions.

Worst Dow Jones Stocks No. 3: Coca-Cola

The beverage maker fell 1% in Q1.
Coca-Cola isn’t just Coke and sugary soft drinks these days. As it looks to offset crumbling sales of soda, Coca-Cola has grown its stable of coffee-, cannabis- and vitamin-infused drinks.
But Coca-Cola stock suffered its worst one-day loss in years Feb. 14, after giving lackluster guidance as worldwide volume growth slows.

Worst Dow Jones Stocks No. 4: UnitedHealth

UnitedHealth stock dipped 0.75% in Q1.
The nation’s largest health insurer rallied strongly in January after earnings topped expectations.
But managed care stocks have come under pressure since then, as House Democrats introduced a bill to insure all Americans through Medicare.
Top Democratic presidential hopefuls have also lined up in support of Medicare-for-all proposals, which would effectively put private insurance out of business.

Worst Dow Jones Stocks No. 5: DowDuPont

The chemical conglomerate shed 0.3% in Q1. DowDuPont stock crumbled 9% Jan. 31, after the company reported a mixed fourth quarter, and it has yet to recover.
The company emerged in 2017 from the merger of Dow Chemical and DuPont, and a three-way split is imminent. Dow Inc. replaces DowDuPont on the Dow Jones index in April, following the conglomerate’s breakup into three smaller companies.
Fears of a global economic downturn continue to weigh on DowDuPoint. A narrowing of the oil-to-gas spread is a potential headwind for its basic chemicals business.

CTE in Pro Football Players: Evidence Piles Up

Brain scans indicated that living former National Football League (NFL) players with cognitive and neuropsychiatric symptoms had elevated tau levels in brain regions that are affected by chronic traumatic encephalopathy (CTE), a small study found.
Flortaucipir positron-emission tomography (PET) imaging showed higher amounts of tau in the bilateral superior frontal, bilateral medial temporal, and left parietal regions of 26 former NFL players than controls, reported Robert Stern, PhD, of Boston University School of Medicine, and colleagues in the New England Journal of Medicine.
Currently, CTE can be diagnosed only through postmortem neuropathological examination. “We now have research findings that suggest we can detect the tau PET changes associated with CTE in life,” said study author Eric Reiman, MD, of Banner Alzheimer’s Institute in Phoenix.
“We were able to show small but statistically significant increases in tau depositions, particularly in those regions that were suggested to be preferentially affected by CTE,” Reiman told MedPage Today.
“We were able to show the tau depositions were associated with the [number of] years of football playing,” he continued. “We were not yet able to show a relationship with cognitive or behavioral symptom severity, which might be related to the small number of participants. And we found no elevation in amyloid PET measurements; only one of the NFL players had a positive amyloid PET scan, suggesting their cognitive and behavioral symptoms are not attributable to Alzheimer’s disease.”
CTE is a neurodegenerative disease associated with repetitive head impacts, defined pathologically by the deposition of paired helical filament tau aggregates which are seen initially in the frontal, temporal, and parietal cortices.
“The ostensible chain of events leading to CTE is as follows: playing contact sports, sustaining concussion or other trauma, initiation of events that lead to inflammation or protein misfolding, aggregation of tau protein that leads to degeneration of neurons and supporting elements, and emergence of behavioral and cognitive disturbances years after exposure to play,” wrote NEJM deputy editor Allan Ropper, MD, in an accompanying editorial.
“Stern and colleagues have produced data, now published in the Journal, that in football parlance ‘move the chain,'” Ropper said.
In their research, Stern and co-authors used flortaucipir PET to measure tau and florbetapir PET to assess amyloid-beta in 26 former NFL players with cognitive and neuropsychiatric symptoms and 31 asymptomatic men with no history of traumatic brain injury.
The researchers used automated image analysis algorithms to compare the regional tau standardized uptake value ratio (SUVR, the ratio of radioactivity in a cerebral region to that in the cerebellum as a reference) between the two groups and to explore links between SUVR and symptom severity and associations with years of playing football.
Mean flortaucipir SUVR was higher among former players than among controls in three brain regions:
  • Bilateral superior frontal (1.09 vs 0.98; adjusted mean difference 0.13, 95% CI 0.06-0.20; P<0.001)
  • Bilateral medial temporal (1.23 vs 1.12; adjusted mean difference 0.13, 95% CI 0.05-0.21; P<0.001)
  • Left parietal (1.12 vs. 1.01; adjusted mean difference, 0.12, 95% CI 0.05-0.20; P=0.002)
Exploratory analyses showed that the correlation coefficients in these three regions between SUVRs and years of play were 0.58 (95% CI 0.25-0.79), 0.45 (95% CI 0.07-0.71), and 0.50 (95% CI 0.14-0.74), respectively.
The researchers found no association between tau deposition and scores on cognitive and neuropsychiatric tests. Only one former player had levels of amyloid-beta deposition that were comparable to those in persons with Alzheimer’s disease.
“The risk of CTE associated with a long duration of playing football, hinted at in the current study and in another from the same group, does not necessarily correspond to the number, severity, or serial occurrence of concussions,” Ropper noted. “Individual factors such as the player’s size, head-to-neck configuration, style of play, and position, as well as biologic attributes may influence the deposition of tau.”
While the results of this study provide initial support for flortaucipir PET to detect abnormal tau from CTE during life, “we’re not there yet,” Stern said in a statement. “These results do not mean that we can now diagnose CTE during life or that this experimental test is ready for use in the clinic.”
The authors are working with other researchers on a longitudinal study called DIAGNOSE CTE to follow former NFL players, former college football players, and people with no history of contact sports play, Reiman added. Initial DIAGNOSE CTE results are expected in early 2020.
The study was funded by grants from Avid Radiopharmaceuticals (a wholly owned subsidiary of Eli Lilly and Company), the National Institutes of Health, the State of Arizona, and the U.S. Department of Defense. All flortaucipir and florbetapir PET radiotracers were provided by Avid Radiopharmaceuticals.