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Morning Briefing

Summaries of health policy coverage from major news organizations

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Thursday, Jul 30 2020

Full Issue

Worries Grow of Antibiotic Shortages

In other pharma news, 23andMe's database is used in cancer drug development and Kodak shareholders get a windfall after federal government pumps $765 million into a largely moribund company.

COVID-19 can be accompanied by secondary bacterial infections with deadly consequences. But the industry that researches and produces antibiotics to fight such illnesses has been upended 鈥 and the pandemic is only making things worse. Now, medical experts worry about the long-term health implications of not having cutting-edge antibiotics in the pharmaceutical pipeline. (Solman, 7/29)

The pharmaceutical giant GlaxoSmithKline is starting human trials of the first medicine, a cancer drug, that has emerged from its two-year-old collaboration with consumer genetics firm 23andMe. The novel partnership focuses on using 23andMe鈥檚 massive genetic database, composed of the test results and self-reported health data from 12 million consumers who have taken its tests to learn about their ancestry and a smattering of disease-related genes, and who have said their samples could be used in research. (Herper, 7/29)

Shares of Eastman Kodak soared early Wednesday after the federal government announced that the iconic camera maker would receive a loan to open pharmaceutical factories in the U.S. Kodak stock rose聽as much as 500聽percent on Wednesday, forcing the New York Stock Exchange to halt trading of the company鈥檚 shares several times after they vaulted from $8 to聽as high as $53. The share price dropped back down to roughly $20 shortly before 11 a.m. (Lane, 7/29)

In legislative and legal news 鈥

Over the past month, lawmakers in two states have introduced bills that would ban drug makers from giving most gifts to doctors, although they are responding to different hot-button issues that continue to vex Americans: the rising cost of prescription medicines and the ongoing opioid crisis. In Michigan, state Rep. Douglas Wozniak, who sponsored the legislation, complained that drug prices have increased 鈥渁stronomically鈥 and there is a need to eliminate what he called 鈥渆xorbitant incentives鈥 that pharmaceutical companies are providing prescribers. His bill is part of a legislative package designed to hold all companies in the 鈥渟upply chain鈥 accountable for rising costs. (Silverman, 7/29)

Amid concerns over access to medicines that were hatched with U.S. taxpayer funds, Democratic lawmakers have asked the Government Accountability Office to investigate the discovery and development of remdesivir, which is the first drug authorized to聽treat聽Covid-19. In a letter to the congressional watchdog, the lawmakers argue that the medicine, which is sold by Gilead Sciences (GILD), eventually reached patients thanks, in part, to an estimated $70 million in federal funding and 鈥漦ey scientific contributions鈥 from U.S. government scientists. (Silverman, 7/28)

In the latest imbroglio involving drug makers and kickbacks, Pacira Biosciences (PCRX) has agreed to pay $3.5 million to resolve allegations of paying doctors bogus research grants to persuade them to prescribe its only medicine, the Exparel painkiller, which is used during various surgical procedures. From late 2012 through early 2015, Pacira approved and funded the grants despite receiving little or no documented description of any proposed research and then conducted little to no follow up to ensure the work was being done, according to court documents filed by the Department of Justice. In some cases, grant recipients did not conduct any research, at all. (Silverman, 7/30)

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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