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Morning Briefing

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Friday, May 7 2021

Full Issue

McKinsey's, Publicis' Roles In Opioid Epidemic Targeted By Lawsuits

In other pharmaceutical news, Incyte will pay $12.6 million to settle a kickbacks scandal; reports cover new "natural killer" cells cancer treatments; and a $100 million investment will boost efforts using artificial intelligence to develop gene therapies.

McKinsey & Co. faces Kentucky and West Virginia school districts鈥 lawsuits alleging the company鈥檚 work for opioid makers fed an epidemic that harmed children and drove up educational costs, in the first such cases by educators against the consulting firm. McKinsey鈥檚 advice to opioid makers such as Purdue Pharma LP on ramping up sales of the highly addictive painkillers made it the 鈥減rimary architect鈥 of marketing campaigns that resulted in millions of opioid users鈥 addictions over the last 20 years, the suit on behalf of more than 170 Kentucky school districts says. (Feeley, 5/6)

The Massachusetts attorney general has filed a lawsuit against Publicis Health, one of the world鈥檚 largest health care communications companies, for allegedly designing and placing unfair and deceptive 鈥渕arketing schemes鈥 to help Purdue Pharma sell more of its OxyContin painkiller. The state claimed that, from 2010 through 2019, Publicis (PUBGY) collected more than $50 million in exchange for creating plans that convinced doctors to prescribe Purdue opioids to more patients 鈥 and at higher doses for longer periods of time. (Silverman, 5/6)

The family of Chris Cornell and a doctor who they alleged over-prescribed him drugs before he died have agreed to a settle a lawsuit. Court documents filed by attorneys for the rock singer鈥檚 widow, Vicky Cornell, and their children, Toni and Christopher Nicholas Cornell, said a confidential settlement had been reached. The documents were filed in April, but they had gone unnoticed before City News Service reported on them Thursday. (Dalton, 5/7)

In other pharmaceutical industry news 鈥

Incyte (INCY) agreed to pay $12.6 million to settle allegations that donations amounted to kickbacks paid to Medicare patients as a way to cover their out-of-pocket costs, the latest in a growing list of drug makers to reach such a deal with the U.S. government. At issue is a federal law known as the Anti-Kickback Statute, which prohibits pharmaceutical companies from offering or paying 鈥 whether directly or indirectly 鈥 money or anything else of value to induce Medicare or other federal programs to purchase their drugs. The Department of Justice has previously alleged some charities made it possible for drug companies to evade the law. (Silverman, 5/6)

Off-the-shelf treatments for cancer made from genetically engineered T cells and natural killer, or NK, cells have each shown promise in clinical trials. On Thursday, two biotech companies 鈥 Nkarta and CRISPR Therapeutics 鈥 announced a partnership that aims to merge the two immune-cell approaches together. (Feuerstein, 5/6)

Dyno Therapeutics, a Cambridge biotech that uses artificial intelligence techniques to develop gene therapies, said Thursday that it has raised $100 million from investors. The company uses machine learning to design a type of gene therapy 鈥渧ector,鈥 or carrier, aiming to make treatments that are easier to deliver and more effective. Dyno聽said the funding would speed up the development of its vectors, which can be used to target liver, muscle, eye, and central nervous system diseases. The company also plans to explore new disease areas, including those that affect the heart and lungs. (Anissa Gardizy, 5/6)

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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