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Morning Briefing

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Wednesday, Aug 5 2020

Full Issue

Gilead, Purdue Pharma In The Hot Seat

A group of state attorneys general wants the federal government to sidestep Gilead's patents for remdesivir, and the Justice Department wants $18.1 billion from bankrupt opioid maker Purdue Pharma. Also in the news: Kodak; and pricey drugs.

A bipartisan group of state attorneys general is urging the federal government to sidestep the patents held by Gilead Sciences (GILD) for remdesivir, the only authorized treatment for Covid-19, over frustration with pricing and supplies set by the manufacturer. In arguing their case, the state officials maintain Gilead has been 鈥渦nable to assure鈥 a sufficient supply of the medication to hospitals across the U.S. and has 鈥淸placed] its profit margins鈥 over patients by charging the federal government $2,340 for a five-day treatment course, even though U.S. taxpayer dollars contributed to the discovery of the drug and manufacturing costs are reportedly low. (Silverman, 8/4)

The Justice Department is seeking as much as $18.1 billion from bankrupt opioid maker Purdue Pharma LP, new filings show, a demand that could disrupt the company鈥檚 monthslong effort to reach a settlement with states and local communities that accuse it of helping fuel the opioid crisis. The filings, made by the Justice Department in connection with Purdue鈥檚 bankruptcy case, also telegraph for the first time the nature and scope of yearslong criminal and civil investigations into the OxyContin maker. (Randazzo, 8/4)

In other pharmaceutical news 鈥

Kodak is back in the news again after some time flying under the radar, and for a somewhat surprising reason: The Trump administration has tapped the legacy film and photography pioneer to produce pharmaceutical ingredients. The company will receive a $765 million government loan to launch a new division called Kodak Pharmaceuticals, which will eventually produce as much as 25% of the active ingredients for generic medications in the United States. The deal helps fulfill a key Trump administration priority to reduce dependence on foreign production of drugs and other crucial products. (Duffy, 8/4)

Some of the existing drugs scientists are testing as Covid-19 treatments have a special status for rare disease treatments, and the price tags to match 鈥 prompting early warnings from academics and drug pricing reform advocates that if one is effective, access could be an issue. At issue are so-called 鈥渙rphan drugs,鈥 which get special exclusivity perks from the Food and Drug Administration because they treat a rare disease. Drugs get to keep that designation 鈥 and the perks 鈥 even if they鈥檙e later approved for a broader category of patients. That exclusivity often translates into higher prices, especially for rare disease drugs where demand is expected to be low. (Sokolow, 8/5)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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