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Friday, July 7, 2023

Generic group sues Minn. over a drug pricing transparency law it calls an ‘unconstitutional overreach’

 The trade group for generic drug companies has filed a lawsuit alleging a Minnesota law that is designed to provide transparency into prescription drug pricing is unconstitutional, the latest effort to push back against states attempting to lower the cost of medicines.

In its lawsuit, the Association for Accessible Medicines claimed the law is an “unconstitutional overreach,” because it gives the state the power to regulate interstate commerce and apply Minnesota law to prices charged in other states. The trade group also contended the law violates the constitutional right to due process because the state has the right to file lawsuits over out-of-state transactions.

https://www.statnews.com/pharmalot/2023/07/06/minnesota-drug-transparency/

Novavax to receive $350 mln from Canada for unused COVID shots

 Novavax Inc said on Friday Canada will pay $349.6 million to settle the forfeiting of certain doses of its COVID-19 vaccine previously scheduled for delivery.

The U.S. vaccine maker also reached a deal with the country's public works and government services department to amend the advance purchase contract after a sharp decline in global demand left a raft of COVID-19 doses unused.

The number of vaccine doses due for delivery has been reduced and the schedule for remaining doses to be shipped revised under the amended terms, the company said.

The payment will be made in two equal installments in 2023 and the original value of the contract remains unchanged.

However, the department can terminate the contract if the company fails to achieve regulatory approval for vaccine production at the Biologics Manufacturing Centre by Dec. 31, 2024.

Novovax – which has its COVID-19 vaccine as the only marketed product after 35 years in business – has raised doubts about its ability to remain in business, flagging uncertainties around its revenue and funding crunch.

The company said in May it expects 2023 revenue between $1.4 billion and $1.6 billion, of which $800 million was from "locked-in" overseas purchase contracts for the COVID shot that it has committed to ship this year.

https://finance.yahoo.com/news/novavax-receive-350-mln-canada-221754182.html

Aldeyra reports mid-stage results for retinitis pigmentosa candidate

 Aldeyra Therapeutics said that a phase 2 trial of its retinitis pigmentosa candidate ADX-2191 showed the therapy led to significant results.

https://seekingalpha.com/news/3986325-aldeyra-reports-positive-mid-stage-results-retinitis-pigmentosa-candidate

Alzheimer’s drug approval unlikely to ease tension over coverage

 An ongoing fight among Medicare officials, Alzheimer’s patient groups and lawmakers over coverage of a new Alzheimer’s drug is not likely to abate, despite it getting the green light from federal health officials.

The Food and Drug Administration on Thursday granted full approval to the drug, called Leqembi, based on clinical trial data showing it slowed cognitive decline by about 27 percent compared to a placebo. 

Leqembi, developed by Eisai and Biogen, is the first drug approved that can slow the course of Alzheimer’s disease. FDA gave it fast-track approval in January, allowing manufacturers to launch the treatment based on preliminary evidence.

FDA’s full approval also triggered expanded Medicare coverage for patients, but with a major caveat.

Specifically, the Centers for Medicare and Medicaid Services will require patients and clinicians to participate in a registry, which will collect evidence about how the drug works in the real world. 

Medicare’s requirement for a registry applies to all so-called anti-amyloid drugs “that may slow the progression of Alzheimer’s disease.” No other FDA-approved medication has that type of requirement.

Patient advocacy and industry groups have been lobbying intensely for no coverage limits and have the support of bipartisan lawmakers. They were incensed by the decision and claim it will be a barrier to widespread treatment access. 

Leqembi is just the second drug in its class, and there are more on the horizon. Advocates want Medicare to change its policy before any others get approved.

“I can’t see how they would justify letting a policy stay in place that’s based on such an outdated read of the evidence, based on what we have today,” said Robert Egge, chief public policy officer and executive vice president of public affairs at the Alzheimer’s Association.

In a statement Thursday,  Alzheimer’s Association leaders said they felt CMS listened to them by designing a “low touch” registry to be as easy to use as possible. 

But Egge said he was disappointed the agency did not start a formal process to reconsider the requirement altogether.

“This reconsideration is extremely important and long overdue. We will continue to work with the administration and Congress to ensure the initiation of this process,” Egge said in a statement.

Congress has also been pushing for broad Medicare coverage.

House Energy and Commerce Chair Cathy McMorris Rodgers (R-Wash.) said in a statement on Wednesday, ahead of FDA’s decision, that CMS should already be covering Alzheimer’s treatments that have been cleared under the FDA’s accelerated approval process. 

Once the agency grants traditional approval, “there will be no excuses for CMS to effectively deny coverage to Americans in need,” McMorris Rodgers said. 

Rep. Anna Eshoo (D-Calif.), the ranking Democrat on the Energy and Commerce health subcommittee, on Thursday said it was “essential for Medicare to provide the broad coverage it has promised for Alzheimer’s treatments that receive traditional approval. I will be watching closely to make sure that promise is delivered. Families and patients deserve access to the life-changing drug without unnecessary burdens on patients or doctors.”

The concern is not merely hypothetical. 

Eli Lilly in May released initial results from a clinical trial of its new Alzheimer’s antibody treatment that were comparable to Leqembi, and the FDA could approve it by the end of the year. 

Jason Karlawish, a co-director of the University of Pennsylvania’s Penn Memory Center, said he thinks the U.S. health system is unprepared for these new drugs. Fighting over access, he said, misses the point.

“There’s been this rhetoric around the need for wide access to the drug that kind of simply misses the fact that the issue is rational access to a drug,” Karlawish said. “It’s got benefits, it’s got risks. It’s complicated and it’s landing in a health care system that’s not ready for it.”

But others said a registry requirement doesn’t make sense, especially for future drugs. 

Dennis Selkoe, co-director of the Center for Neurologic Diseases at Brigham and Women’s Hospital in Boston, who has consulted with Eisai, said having a registry requirement for only Alzheimer’s drugs could send a message to patients that regulators don’t think the drugs work.

“You ask yourself … what was happening here? Why is this so sensitive that it needs a registry of all patients? Because the implication could be, we don’t think this stuff really works. We’re worried that it might not be useful. And of course, that will give pause to patients,” Selkoe said. 

“Many of us assume that Medicare cannot say what they really are concerned about, which is the total cost of an extensive therapeutic for arguably the most common brain disease in humanity,” Selkoe said.

Leqembi is expensive; it costs $26,500 a year, and experts said widespread uptake could significantly increase Medicare premiums. Leqembi is an infusion drug administered by a physician, so it is covered under Medicare Part B.

About 6.7 million people in the United States are diagnosed with Alzheimer’s, and that number is expected to rise as the population ages. There about 1.5 million people estimated to be in the early stages of Alzheimer’s. 

Drugmaker Eisai has said it expects only about 100,000 patients will be using the drug in its first three years on the market.

“Even if that relatively conservative number turns out to be correct, that’s still $2.7 billion in annual spending for this drug. If the take up rate is higher, the numbers obviously are going to be greater,” said Tricia Neuman, senior vice president of the health research group KFF and executive director of its Medicare policy program.

If just 5 percent of people with Alzheimer’s disease take the drug, the cost would be closer to $9 billion in additional spending annually for Medicare— roughly equal to spending on the top three Part B drugs combined in 2021, Neuman said.

Some Medicare patients could be also responsible for more than $5,000 per year in out-of-pocket copay costs for the drug.  

There are also serious safety concerns with Leqembi and Eli Lilly’s drug, called donanemab.

If Medicare requires reporting of the side effects, that can help inform the development and trials of other drugs in the future.

FDA’s approval of Leqembi came with a black box warning on the drug’s label, stating that in rare cases it can cause “serious and life-threatening events” and that there have been cases of brain bleeding, “some of which have been fatal.”

Three people died during the primary trial, and about 13 percent of all participants who took Leqembi showed potentially serious brain bleeding and swelling. 

“I think given the controversies, given the costs, given the side effects, it’s important that we keep collecting data, and I think it’s reasonable to require [a registry],” said University of Kansas Medical Center neurologist Jeffrey Burns.

“It will on some level exacerbate access issues, but … I don’t think the registry will be necessary forever. But right now, I think it’s reasonable,” Burns said. 

https://thehill.com/policy/healthcare/4084412-alzheimers-drug-approval-unlikely-ease-tension-coverage/

Biden defends sending cluster munitions to Ukraine

 President Biden on Friday defended the decision to send cluster munitions to Ukraine, saying the Ukrainians needed them.

“It was a very difficult decision on my part. And by the way, I discussed this with our allies, I discussed this with our friends up on the Hill,” Biden told CNN in an interview that is set to air Sunday.

“The Ukrainians are running out of ammunition,” he added, noting the “main thing” is whether the Ukrainians have the weapons to stop the Russians.

“I think they needed them,” he said of the cluster munitions.

Cluster munitions are dropped by aircraft or fired by a ground-based weapons system over a target area, spreading out a few dozen to hundreds of submunitions. The decision to send the weapons, which can strike multiple targets, comes as Ukrainian forces are expending high rates of ammunition and are making slow progress in their counteroffensive.

“This is a war relating to munitions. And they’re running out of that ammunition, and we’re low on it,” Biden told CNN. “What I finally did, I took the recommendation of the Defense Department to, not permanently, but to allow for this transition period, while we get more 155 weapons, these shells, for the Ukrainians.”

“They’re trying to get through those trenches and stop those tanks from rolling. But it was not an easy decision,” the president told CNN. “We’re not signatories to that agreement, but it took me a while to be convinced to do it.”

The approval of the transfer has sparked concern from human rights groups and some congressional lawmakers over the weapon’s ability to harm civilians and children long after the bombs have fallen.

The weapons are banned by more than 100 countries because the submunitions spread out imprecisely, often fail to detonate and remain as explosive hazards for decades.

https://thehill.com/homenews/administration/4086022-biden-defends-cluster-munitions-ukraine/

Black unemployment nearly double White joblessness as overall rate falls

 June was the highest rate of unemployment for Black workers since last August, when it hit 6.4%. 

Unemployment rose for all demographic groups last August, but Black workers were the only group whose labor force participation fell. 

Since April, the number of unemployed in the country has increased by 300,000, with Black workers accounting for the vast majority with 267,000 job losses, Bloomberg reported.  

The unemployment rate also rose for Black workers in May to 5.6% from April. 

"If the employment level for Black workers has gone down pretty significantly for the last three months, then that is a red flag," Carmen Sanchez Cumming, a researcher with the Washington Center for Equitable Growth told CNBC.

Black employment has decreased by 3% over the last three months. 

She said higher unemployment is a symptom of businesses reaching employment levels similar to before the coronavirus pandemic after scrambling to rehire workers when the economy began reopening. 

Black workers are also more likely to be fired when the economy slows, Bloomberg reported, citing research. 

"If conditions continue to weaken, or even accelerate, the gains won by Black workers and other vulnerable groups could diminish quickly," William Rodgers, director of the St. Louis Fed’s Institute of Economic Equity, told Bloomberg. 

https://www.foxbusiness.com/economy/black-unemployment-nearly-double-white-joblessness-overall-rate-falls

Mapping The World's Informal Workforce

 The following chart uses data from the International Labour Organization to show the share of informal employment in different countries around the world.

According to the ILO, informal employment refers to all "economic activities, excluding illicit activities, by workers and economic units that are, in law or in practice, not covered or insufficiently covered by formal arrangements".

As Statista's Anna Fleck explains, this means informal workers are not covered by national labor legislation, income tax or social protection.

The Covid-19 pandemic exposed the vulnerability of such workers.

As shown below, informal employment is most prevalent in the Global South, with several countries in the West and Central African regions recording over 90 percent of employment as informal. Much of South and Southeast Asia also have a relatively high share of informal workers, hitting averages of 75-89 percent.

Infographic: Mapping The World’s Informal Workforce | Statista


According to the ILO’s 2023 report ‘Women and men in the informal economy’, informal employment is a greater source of employment for men (60 percent) than for women (55 percent) worldwide, which is partly due to the influence of major countries such as China and Russia, where men face “greater exposure to informality".

In 56 percent of countries, however, especially in low and lower-middle income countries, women represent a higher share of people working in the informal sector.

Other global trends include the fact that people in rural areas are almost twice as likely to be in informal employment than people living in urban centers.

https://www.zerohedge.com/personal-finance/mapping-worlds-informal-workforce