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Tuesday, July 2, 2019

U.S. drugmakers institute new round of increases

Early July is typically one of the two times each calendar year that U.S. drugmakers hike prices. Yesterday, on cue, many appeared to do just that.
B. Braun raised the price of its Isolyte saline solution by more than 100% to almost $6/package. Saline solutions, used to rehydrate patients and dilute medicines before administration, have been in short supply in the past few years.
GlaxoSmithKline (GSK +0.1%) raised the price of ovarian cancer med Zejula (niraparib), acquired in Tesaro merger, by 5% to $6,913 for a 30-day supply.
Amneal Pharmaceuticals (AMRX -1.3%) hiked the price of thyroid med Unithroid by ~10%.
According to Rx Savings Solutions, 20 companies raised prices on over 40 products by an average of 13.1%, both higher than July of last year when 16 firms boosted prices by an average of 7.8%.
Many pharmaceutical makers have pledged to restrict increases to less than 10% per annum. During Q1, list prices for U.S. branded drugs rose 3.3% versus 6.3% a year ago per SSR Health LLC.
Some observers believe that many companies may raise prices later this year when there is less attention on the issue.
ETFs: BIBGRXTHWBMEBISIXJARKGCHNAIDNAXLV
Selected tickers: Takeda (TAK +0.2%), Bristol-Myers Squibb (BMY +1%), Merck (MRK +0.3%), Pfizer (PFE +0.8%), Johnson & Johnson (JNJ -0.2%), AbbVie (ABBV -0.4%), Eli Lilly (LLY +0.7%), Novartis (NVS +0.1%), Roche (OTCQX:RHHBY +0.1%), Allergan (AGN +0.1%), Amgen (AMGN -0.3%), Biogen (BIIB +0.1%), Gilead Sciences (GILD +1.4%)

NewYork-Presbyterian to grow telehealth services with innovation institute

NewYork-Presbyterian, based in New York City, has launched the new Hauser Institute for Health Innovation with a specific focus on expanding telehealth services including remote patient monitoring and teleparamedics.
The new innovation institute is named in recognition of philanthropists Rita Hauser and Gustave Hauser, who have given more than $50 million to NewYork-Presbyterian in support of the hospital’s comprehensive telehealth services, according to the health system.
Gustave Hauser was the founding chairman and CEO of Warner Cable Communications and later established Hauser Communications. Rita Hauser, president of the Hauser Foundation, is an international lawyer and was a senior partner for more than 20 years at a major New York City law firm.
NewYork-Presbyterian is an 11-hospital system that experiences 2.6 million patient visits annually. The system employs 10,000-plus physicians and is equipped with 4,000-plus certified beds.
“With the Hausers’ extraordinary support, NewYork-Presbyterian is transforming the way health care is delivered, using technology to put patients’ needs first and expand access to our world-class care,” Steven Corwin, M.D., president and CEO of NewYork-Presbyterian, said in a statement.

“NewYork-Presbyterian is using advanced technologies to fundamentally change the way that health care is provided, making it more convenient and accessible to all,” Rita Hauser said in a statement.
NewYork-Presbyterian has been scaling up telehealth services and seen success with leveraging virtual care tools. The health system’s Express Care telehealth program has helped to cut nonurgent emergency department wait times by nearly two hours, according to The Wall Street Journal. That program enables ER patients with minor injuries to see a doctor via video conferencing.
The health system also launched NYP OnDemand in July 2016 as a comprehensive suite of digital health services. The expansion of telehealth services was also the result of the philanthropic partnership with the Hausers. In collaboration with Weill Cornell Medicine and Columbia University Irving Medical Center, NYP OnDemand has grown to include more than 46 programs, and patients have received healthcare services during more than 230,000 visits.
NYP OnDemand services enable patients to connect with healthcare providers via the hospital’s website and mobile apps as well as self-service kiosks at some Walgreens and Duane Reade stores. The services include digital urgent care, where patients can access emergency medicine physicians through a live video chat; peer-to-peer consults between physicians; and digital second opinion, which enables patients to contact specialists via a portal with no need for in-person appointments.
The Hausers’ financial support also helped NewYork-Presbyterian to expand its fleet of mobile stroke treatment units with advanced telemedicine technology to allow neurologists from NewYork-Presbyterian’s hospital locations to be consulted remotely, according to the health system.

The Hauser Institute for Health Innovation will support innovation and research to benefit patients and bring thought leaders together to advance knowledge in the digital health field, according to NewYork-Presbyterian. A key focus will be expanding telemedicine services deeper into the communities NewYork-Presbyterian serves to provide high-quality, convenient and affordable care with an emphasis on preventive health and wellness, according to the health system.
The new innovation institute will support NYP OnDemand, remote patient monitoring, which can help reduce patients’ length of hospital stays and preventable rehospitalizations, and teleparamedics for high-risk patients who leave the hospital. This service enables emergency management services teams who visit patients in their homes to connect to specialists and coordinate the patient/physician interaction in real time during the home visit.
The new institute will also support the clinical operations center, a remote monitoring system and command center that connects clinical care programs throughout the healthcare system. At this center, registered nurses can track physiologic data of patients in the emergency department in real time, as well as monitor the temperature of refrigerators that store medicine, the health system said.

Galapagos gains on Gilead rheumatoid arthritis plan

Gilead Sciences Inc. GILD, +1.08% announced Monday afternoon that it plans to ask the Food and Drug Administration to approve an arthritis drug this year. Gilead, in partnership with Galapagos NV GLPG, +3.53% has been testing a drug known as filgotinib for rheumatoid arthritis, and the latest study results excited investors in March. In a news release Monday, Gilead said that it met with the FDA to discuss those test results recently. “As a result of this discussion, a path forward has been established to submit the NDA for filgotinib as a treatment for rheumatoid arthritis in 2019,” the release said.

Varian to acquire certain cancer-related assets from Boston Scientific for $90M

Aimed at increasing its footprint in cancer, Varian (NYSE:VAR) has agreed to acquire certain interventional oncology lines from Boston Scientific for $90M.
The portfolio of drug-loadable microsphere (Oncozene/Embozene Tandem) and bland embolic bead products (Embozene) are used to treat arteriovenous malformations and hypervascular tumors.
The products generated $21.2M in revenue in 2018.
Varian says the transaction will be immaterial to fiscal 2019 results and guidance but will be accretive to EPS in 2020.

Iovance up 4% premarket on bullish registration path for LN-145

Iovance Biotherapeutics (NASDAQ:IOVA) perks up 4% premarket on light volume in reaction to positive developments on the regulatory pathway for Fast Track- and Breakthrough Therapy-tagged LN-145.
Based on FDA feedback from its End of Phase 2 meeting with the agency, the company says its ongoing Phase 2 innovaTIL-04 study in cervical cancer may be sufficient to support a U.S. marketing application based on a clearer definition of the patient population, specifically, patients who have progressed following first-line systemic treatment for recurrent/metastatic cervical cancer. This population comprises almost all of the advanced patients enrolled in the trial to date.
LN-145 is a tumor-infiltrating lymphocyte therapy derived from the patient’s own immune cells (T lymphocytes). The cells are isolated from the patient’s tumor, expanded in the laboratory, then infused back into the patient where they recognize and kill cancer cells. Patients also receive pre-conditioning therapy to reduce the immune suppressive environment of the cancer and up to six doses of interleukin 2 (IL-2) after LN-145 infusion to support the growth and activation of the TIL therapy.
The company expects to file its BLA in H2 2020.

Evercore softens view on Stryker in premarket analyst action

Veracyte (NASDAQ:VCYT) initiated with Buy rating and $33 (15% upside) price target at Needham.
PRA Health Sciences (NASDAQ:PRAH) initiated with Market Perform rating and $105 (7% upside) price target at SVB Leerink.
Bio-Techne (NASDAQ:TECH) upgraded to Buy with a $270 (29% upside) price target at Janney Montgomery.
Dova Pharmaceuticals (NASDAQ:DOVA) upgraded to Outperform at Evercore ISI. Shares up 5% premarket.
Teladoc (NYSE:TDOC) removed from Franchise Pick List at Jefferies.
Stryker (NYSE:SYK) downgraded to In Line with a $210 (2% upside) price target at Evercore ISI.

Perrigo up 2% premarket on guidance boost

Following the close of its Ranir Global Holdings buy, Perrigo (NYSE:PRGO) bumps its 2019 non-GAAP EPS guidance up $0.10.
Shares are up 2% premarket on light volume.