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Sunday, March 6, 2022

Medicare’s new devices

 Last week Pear Therapeutics trumpeted the creation of new reimbursement codes by the Centers for Medicare and Medicaid for its three approved digital therapies, saying this was a step towards more widespread coverage of this category of medical device.

But Pear was not the only company to have its innovative devices recognised by the CMS as worthy of simplified reimbursement. Outset Medical, maker of a portable dialysis system, and the sleep apnoea specialist Signifier Medical Technologies are also beneficiaries, and could see their sales rise as a result. 

CMS uses reimbursement codes to facilitate the processing of health insurance claims by Medicare and other insurers. When new devices reach the market, sometimes they are so unlike anything already available that new codes must be created. Similar devices that gain approval subsequently can then use these new codes. 

In the latest list of decisions from the CMS, Signifier was awarded two new codes to describe eXciteOSA, which gained de novo FDA clearance in early 2021 for daytime treatment of mild obstructive sleep apnoea and primary snoring. 

eXciteOSA is a handheld device that applies electrical stimulation to the tongue. This strengthens the upper airway muscles, Signifier says, improving endurance and preventing airway collapse during sleep. Unlike other sleep apnoea devices such as CPAP machines, which are used while patients sleep, eXciteOSA is the first commercial-stage device that is used when the patient is awake. 

According to Dr Marc Benton, a pulmonologist and sleep medicine specialist, once reimbursement is established a broader population of sleep apnoea patients will be able to get hold of eXciteOSA. Like all the new codes, those covering Signifier’s device will become effective on April 1.

Rejected

Another device that works by stimulating the tongue was denied reimbursement. Helius Medical’s Pons device sends impulses to the tongue to stimulate cranial nerves and then the brain stem, to improve the gait of patients with balance disorders caused by traumatic brain injury. It gained de novo clearance last March at the second time of asking, but the CMS opted not to award it the two new codes Helius requested, saying it needed more information. 

Pons is not the only device for which the CMS has declined to create a new code. For example, Smith & Nephew’s Oxinium, an alloy used in many of the company’s knee and hip implants, will not receive a new code after the CMS pointed out that the purpose of these codes was to provide a way of conveying information required for accurate payment of claims – “not necessarily to differentiate among similar devices”. 

But Pear Therapeutics arguably wins the prize for the most important achievement in gaining new codes. The means of reimbursing digital therapeutics has, until now, not been well defined, and the question has dogged not just Pear but companies like Akili, Orexo, Onduo and Mahana Therapeutics. 

That said, the revelation of easier reimbursement for Pear’s apps has left investors cold. The company’s stock has not risen above $5 since mid-January, meaning it has lost more than half of its value since Pear listed on Nasdaq via the Spac Thimble Point Acquisition Corp last December. 

Recipients of new reimbursement codes
CompanyDeviceDescriptionPathwayUS approval date
CoopervisionMiSight 1 dayContact lens for myopic ametropiaPMANov 2019
Impulse DynamicsOptimizer patient chargerImplanted muscle stimulator for heart failurePMAMar 2019
Signifier Medical TechnologieseXciteOSA control unitTongue stimulator for sleep apnoeaDe novoFeb 2021
Signifier Medical TechnologieseXciteOSA mouthpieceTongue stimulator for sleep apnoeaDe novoFeb 2021
Pear TherapeuticsreSETDigital therapeutic for substance use disorderDe novoSep 2017
Koya MedicalDayspring LiteCompression garment for lymphoedema and venous disease510(k)Sep 2021
Koya MedicalDayspring*Compression garment for lymphoedema and venous disease510(k)Apr 2021
Triad Life Sciences (Convatec)InnovaMatrix FSBioactive scaffold for wounds and burns510(k)Apr 2021
Outset MedicalTablo Haemodialysis system for renal disease510(k)Mar 2020
Pear TherapeuticsSomrystDigital therapeutic for insomnia510(k)Mar 2020
Pear TherapeuticsreSET-ODigital therapeutic for substance use disorder510(k)Dec 2018
PolymedicsSupra SDRMSynthetic matrix for difficult to heal wounds510(k)Jun 2017
PolymedicsSuprathelSynthetic dressing for wounds and burns510(k)May 2009
*Received two new reimbursement codes. Source: Evaluate Medtech, CMS & FDA.

https://www.evaluate.com/vantage/articles/news/policy-and-regulation/medicares-new-devices

Contrarian Investor? Buy Viatris Stock Now

 Contrarian investing isn't for everyone. It's emotionally difficult to buy shares of a company that everyone else is ditching as quickly as possible, especially given that it might take years before your contrarian hunch is proven true -- if it ever is. But, for those who can stomach it, contrarianism can provide significant gains to your portfolio. 

On that note, there's a contrarian thesis for Viatris VTRS -2.02% ) brewing thanks to its worse-than-expected earnings report for 2021. Shares of this generic drug manufacturer are down by more than 30% in the past month, but it's probable that the market is overreacting to the long-term importance of the recent subpar earnings. And that isn't the only thing making it worth a look, so let's investigate in a bit more detail to see why it might be a great counterintuitive pick.

What went wrong in 2021

2021 was Viatris' first full year as a unified entity -- a company formed by the spinoff and merger of Pfizer's generic drug division with another generic maker called Mylan. So, it's understandable that things might not be going perfectly smoothly. Combining the operations of two overlapping units implies inefficiencies that might take a while to iron out.

Still, the reason why some investors are dumping the stock is that Viatris' revenue, earnings, and gross margin all shrank slightly over the course of 2021. It brought in $17.8 billion last year, which is actually 1% less than the $18.1 billion from 2020. Likewise, its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) shrank by 6%, hitting $6.4 billion. 

Per management's guidance, 2022's figures will be slightly worse, with roughly $17.2 billion in revenue and adjusted EBITDA of only $6 billion. Inflation and mounting competition to produce key, high-margin generics are to blame -- and both are all but guaranteed to persist for the time being. 

Then there's the raft of issues which have plagued Viatris since its inception. It isn't profitable, and it also has over $23 billion in debt. Though the company is planning to keep paying down its debt, deleveraging will take quite a long time as 2022's repayments are likely to be only around $2.1 billion.

undefined Stock Quote

NASDAQ: VTRS

Viatris Inc.
Today's Change
(-2.02%) -$0.21
Current Price
$10.20

KEY DATA POINTS

Market Cap
$12B
Day's Range
$9.91 - $10.29
52wk Range
$9.68 - $16.29
Volume
24,556,863
Avg Vol
13,044,085
P/E (ttm)

As shown by the above, Viatris has a few problems. But there are a few reasons why it could be a lucrative contrarian purchase.

First, its free cash flow (FCF) is expected to improve this year, rising from $2.5 billion to reach a midpoint guidance of $2.7 billion. That means its flat revenue and earnings growth is unlikely to threaten its ability to meet its financial obligations like debt repayments or paying dividends. Realizing leftover cost synergies from the merger and $600 million in new revenue coming online will likely help the rise in FCF. And realizing even more cost synergies is on the calendar as far out as 2023, too. 

Second, on the topic of generating new revenue, Viatris' pipeline is packed with upcoming product launches of generics for popular drugs like Revlimid and Xarelto. And it will be pursuing even more commercialization programs for drugs that have lost their exclusivity protections. 

Research and development spending is slated to increase from its current level near 4% of total revenue to roughly 9% of total revenue by 2026. This continuous investment into R&D is expected to yield around $500 million in new product revenue each year from 2023 and beyond. 

Finally, Viatris is worth a contrarian purchase because the latest damage to its share price has made its valuation practically irresistible. Its price-to-sales (P/S) ratio is near 0.7, which is far less than the pharmaceutical industry's average P/S ratio of 4.4. Therefore, each share of the stock entitles the bearer to a larger slice of revenue than what it would be, on average, within the industry. 

While it's true that the company is expecting minimal growth this year, it isn't expecting to stop growing forever. As a result, daring investors who buy it at such a steep discount right now are likely to be rewarded when the market's sentiment warms once again. 

For people who can't stomach the risk-taking that contrarianism implies, it's probably best to avoid Viatris for now. Though it may eventually become the stable, slow-growing dividend payer that conservative investors dream of, its recent crash means that it'll need to work hard to earn that reputation.

https://www.fool.com/investing/2022/03/04/want-to-be-a-contrarian-investor-buy-viatris-stock/

This treatment can protect vulnerable people from COVID. But many don’t know about it

 Leanne Cook was glum but unsurprised when the tests confirmed what she and her doctors had expected: Even after three shots of a vaccine, she had no antibodies to protect her against COVID-19.

Her immune system had been hampered by the drugs she takes for her condition, a rare disease affecting her kidneys. As other vaccinated people began to let down their guard last year, Cook continued to minimize trips outside her home in Mission Viejo.

Then Cook heard about something that could plug those missing antibodies into her system — a preventive pair of injections called Evusheld. But health officials cautioned that there was only so much to go around.

Cook said that one medical provider told her, “‘We didn’t get any of this,’” she recalled. “And I’m like, ‘No, no, you guys got doses — I can see it on this website.’ ”

Cook ultimately secured the treatment in January, which finally gave her some antibodies to combat COVID-19 — and enough peace of mind to chance her first trip to a hair salon since the pandemic began. But it took networking, internet savvy and a costly consultation that landed her with an unexpected bill.

“I felt I was at their mercy to get a dose,” Cook said.

Evusheld has been heralded as a way to armor people who remain highly vulnerable to COVID-19 even after vaccination. As government officials loosen masking requirements that have helped shield the immunocompromised, the preventive treatment has gained even more urgency for people who do not generate enough antibodies to gain protection from the COVID-19 vaccines.

The new treatment can “give them the antibodies that they essentially need in order to avoid getting admitted to the hospital” for COVID-19, said Dr. Krist Azizian, chief pharmacy officer for Keck Medicine of USC. “This could truly be lifesaving.”

But immunocompromised people and their advocates complain that scant awareness and a complicated process for allocating the limited supply have hampered the rollout of Evusheld, which is far from a household name even among the immunocompromised.

Many people who need it “don’t even know that it exists,” said Janet Handal, president and cofounder of the Transplant Recipients and Immunocompromised Patient Advocacy Group.

Because the antibody treatment has been sent to a limited number of medical providers, patients in the group have closely monitored a federal database that shows where Evusheld has gone. In Pasadena, Karol Franks said she spotted doses that had been sent to nearby hospitals and reached out to doctors to ask about getting it for her 36-year-old daughter.

“I said, ‘Hey, I see there’s Evusheld.’ And they’re like, ‘What’s Evusheld?’” Franks recalled.

One physician told her the treatment was still not available. Another said that her daughter — a kidney transplant patient who had no antibodies despite being vaccinated and boosted — was nowhere near the front of the line at his hospital. Franks persisted and her daughter Jenna eventually got the antibody shots elsewhere.

“If you’re a patient, you really need to stay on top of things,” Jenna Franks said. “You can’t just wait for the doctor to tell you what to do.”

So far, the federal government has agreed to buy 1.7 million courses of the treatment from AstraZeneca. As of late February, it had delivered nearly 600,000 doses for free to states and territories, according to the U.S. Department of Health and Human Services. Patient advocates have raised alarms about that number, pointing out that at least 7 million adults across the United States are estimated to be immunocompromised.

“It’s insane that there’s such a small amount for so many people,” said Michele Nadeem-Baker, who has chronic lymphocytic leukemia and is an advocate for people with blood cancers. She said she had become discouraged after discovering how few doses had been sent to the Boston institute where she is a patient.

“If you’re going to drop the mask mandate, please have enough Evusheld to go around for all the immunocompromised,” Nadeem-Baker said. If not, “I will continue to be locked up and missing life.”

Those worries mounted late in February, when the FDA started recommending twice as high a dosage to combat new sub-variants — a change that sent patients like Cook in search of another round of the shots. Physicians were already expecting to give eligible patients a second round of the treatment after six months.

Health and Human Services said it was working with health departments to “optimize their inventory” but added that, so far, states and territories had reported that only 20% of the allocated doses were being used.

In Los Angeles, several medical centers said that despite the limited supply, they had enough Evusheld to meet the demand they had seen so far, even with patients being referred from other providers.

“We really thought that the demand would be higher than it’s been,” said Dr. Caroline Goldzweig, chief medical officer for Cedars-Sinai Medical Network. More eligible patients are probably out there, “but doctors don’t necessarily know, ‘How do I look at my practice and find all the patients who are eligible for Evusheld?’ ”

Goldzweig said that, at first, Cedars-Sinai was limiting Evusheld to a group of especially vulnerable patients but soon made it available it to anyone who met federal criteria.

Heart transplant recipient Tania Daniels, who is a Cedars-Sinai patient, said that when she first began asking about the new treatment, “there was very little communication about Evusheld and its availability.”

Daniels said she was eager to get the shots after learning, through a study, that she had no antibodies or T-cells. In January, Daniels said, a nurse she knew told her that “it did not look good at that time.”

Then in February, she phoned to change an appointment, asked again about Evusheld, and finally heard that she could receive the shots, she said. Daniels, who retired from a corporate job to become a patient advocate, said that getting the antibodies had given her “tremendous relief.”

But “each state handles it differently. Each county handles it differently. Each institution handles it differently. And then you add on the fact that there’s not enough supply?” Daniels said. “It’s a mess.”

Dr. Brian Koffman, a retired family physician and cofounder of the CLL Society, which serves patients with chronic lymphocytic leukemia, said there should have been broad and proactive efforts to inform people that “this is how you get it. This is what to expect,” similar to the public education around COVID vaccines. Instead, “it was an afterthought.”

That lack of information has been compounded, he said, by a “haphazard” system in which different institutions have set different criteria for who is first in line for the treatment.

“You shouldn’t have to have a doctoral degree to get this stuff,” Koffman said.

Handal said some members of her group had scouted out centers where the treatment is more readily available and driven as many as 10 hours to get it for themselves or their children. Travel can be risky for immunocompromised people, she said, but “this is, for people, a life-or-death decision.”

Federal officials granted emergency use authorization for the drug in December, after a clinical trial found that Evusheld recipients had a 77% reduced risk of getting COVID-19. Under the federal approval, it can be given to people whose immune systems are compromised or who are medically unable to get the COVID vaccine — and who are not infected with or recently exposed to the virus.

Among the immunocompromised are people who have gotten organ transplants, who take medicine to suppress their immune systems. Last year, researchers found that transplant patients who were vaccinated were 485 times more likely than other vaccinated people to be hospitalized or die from breakthrough infections.

“We’ve got great vaccines,” said Dr. Dorry Segev, a transplant surgeon at NYU Langone Health who led that study. “But they’re not great for some people.”

Many patient advocates worry that the obstacles to getting Evusheld could disadvantage patients who do not use the internet or have little time to phone physicians or to bird-dog a government database.

Researchers have found that other forms of COVID monoclonal antibody treatments — those for people already infected or exposed — have been given less often to Black, Asian and Hispanic patients than white and non-Hispanic ones, according to a report recently released by the Centers for Disease Control and Prevention.

“I had to figure out everything on my own,” said Michael Stubbs, a retiree in Santa Barbara who has rheumatoid arthritis and other immune conditions.

“I’m white. I’m educated. I’m affluent. I have connections. My doctor has connections. ... That’s a privileged position to be in,” said Stubbs, who was among the first patients in Santa Barbara County to get the preventive antibody treatment. “My God, what about the folks ... who don’t have the resources I do?”

There can also be costs: Federal officials say the drug is free to eligible patients, but “there may be an associated administration fee.” Some patients have encountered significant charges from medical providers for administering the injections or vetting recipients for eligibility. Cook, in Mission Viejo, said she ultimately paid more than $1,100, the bulk of it for a brief consultation with a UC Irvine oncologist.

The bills came as a surprise, but “luckily for me ... my family is in the position where we can pay,” Cook said.

A UCI Health spokesman said its patients had not been billed for Evusheld itself, but providers “are permitted to charge for the handling and clinical administration related to the treatment” and that patients who are referred by outside physicians are evaluated by a UCI Health specialist to ensure the therapy is appropriate for them.

The mobile medical provider Concierge MD, which is based in Los Angeles, has been advertising Evusheld for $999. The cost includes screening by a medical provider, giving the patient the injections in their home, and monitoring them afterward for any allergic reactions, said Dr. Abe Malkin, owner of the company.

Malkin was unsure how much of that cost might ultimately be covered by health insurers. So far, “it’s not super popular,” Malkin said. “I just don’t think people know about it.”

In California, health officials aimed to address possible disparities through the allocation process: The antibody treatment was initially divvied up by region, then by county, with amounts tied to how much of the population was considered to be disadvantaged under a state metric, according to its public health department.

Los Angeles County, in turn, surveyed acute care hospitals in November to find out how many eligible patients they served, said Dr. Seira Kurian, who heads the COVID therapeutics effort at the county Department of Public Health. Kurian said that to decide how much goes to a hospital, the county also gauges inventory at each facility, checks in on its latest needs, and ensures that access points are spread across the county.

And at Cedars-Sinai, Goldzweig said an algorithm had been designed to prioritize patients from disadvantaged areas among those who were referred. But the demand has been so limited, so far, that the hospital system hasn’t used it.

HHS said it was “committed to doing everything we can to protect the health and wellbeing of all Americans, including immunocompromised people, which is why we’ve purchased as much product as the manufacturer can supply.”

An AstraZeneca spokesperson said, however, that the company still had additional doses available for purchase this year and was “committed to providing supply to all countries as quickly as possible where we have firm agreements.”

https://www.latimes.com/california/story/2022-03-06/covid-antibody-treatment-obstacles

COVID Update NYC: Several key safety protocols set to drop Monday

 New York City is taking another step to bounce back from the pandemic, with the city set to drop several safety protocols, including a school mask mandate and vaccination requirements for businesses.


Starting on Monday, restaurants in New York City will no longer ask for proof of vaccination before entering.

However, other public indoor businesses like Broadway, is keeping its mask and vaccine requirements through at least the end of March.

You'll also still need to wear your mask on mass transit or when you see a doctor.

Kids in school can now go maskless if they choose in New York City public schools.

Right now, the COVID infection rate is at 1.8%. That's the lowest level since August.

Even at that level, with some mandates lifted, the city is still recommending that you wear your mask in public indoor spaces, especially with a crowd.

Outgoing Health Commissioner Dr. Dave Chokshi says restrictions can return if there's another surge.

"At each level, there's clear guidance for what precautions New Yorkers should take and what actions you can expect from your city government," he said. "The highest level very high or red alert needs no explanation for those of us who survived the devastating spring 2020 first wave in New York City. Those memories are seared in our brain in perpetuity."

German health minister warns of 'summer wave'

 Health Minister Lauterbach also expects a possible corona wave in the summer. The virus could “keep us busy for a long time – a decade or more”. The RKI reported an increasing incidence for the third day in a row.

On Friday, protective measures were relaxed nationwide, affecting restaurants, discotheques and events in particular. However, these regulations will already expire on March 19th. Because only up to this point in time does the Infection Protection Act allow the previous corona restrictions. The federal and state governments agree in principle that there should continue to be a certain basic protection from March 20th. However, there is still no agreement on its exact form. 

Lauterbach said countries must have the ability to respond early to the coming waves. These included the mask requirement and contact restrictions: "It should be possible to set upper limits for private meetings and public events as well as access rules for restaurants, for example, i.e. 2G or 2G Plus regulations." The instruments should only be used when they are actually necessary. 

The Minister of Health believes it is possible that the corona virus will remain for several decades: "I'm pretty sure that we'll get an autumn wave. And Corona will keep us busy for a long time after that - a decade or more." He pointed out that the HIV virus appeared 40 years ago - "and it's still there". Lauterbach said: "We always have to reckon with corona variants, and there can also be dangerous variants."

The Robert Koch Institute (RKI) reported an increase in the nationwide seven-day incidence for the third day in a row. Accordingly, the value of new infections per 100,000 inhabitants and week was 1220.8. For comparison: the day before the value was 1196.4. A week ago, the nationwide incidence was 1253.3 (previous month: 1388.0).

The health authorities in Germany reported 192,210 new corona infections to the RKI within one day (previous week 175,833). Experts assume a high number of cases that are not recorded in the RKI data. One reason is the limited capacity of health authorities, for example, and contacts are often only tracked to a limited extent. In addition, according to the ALM laboratory association, there is now a larger number of people whose infection is no longer confirmed by a PCR test - these infections are therefore not included in the official statistics.

According to the new information, 255 deaths were recorded across Germany within 24 hours. A week ago there were 250 deaths. The number of corona-infected patients who came to clinics per 100,000 inhabitants within seven days was 6.35 on Friday. Among them are many people with a positive corona test who have another main illness.

https://www.tagesschau.de/inland/lauterbach-corona-rki-101.html