STAT+: Pharmalittle: Pharma hopes reformulated drugs will skirt Medicare negotiations; Biogen to acquire Reata for $7.3 billion
Drug companies believe injectable versions of some cancer drugs are likely to be excluded from Medicare price negotiations.
And so, another working week will soon draw to a close. Not a moment too soon, yes? This is, you may recall, our treasured signal to daydream about weekend plans. Our agenda is rather modest. We plan to take in a football match, catch up on our reading, and promenade with the official mascots. And if time permits, we may hold a listening party, where the rotation would include this, this, this and this. And what about you? Given the heat, indoor activities may be in order. You could take in a moving picture show or head to your local temple of consumption. Feeling old-fashioned? Visit the library. Or stay at home, stare at the wall, and feel zen. Well, whatever you do, have a grand time. But be safe. Enjoy, and see you soon. …
Drug companies believe injectable versions of some widely used cancer drugs are likely to be excluded from new U.S. government price negotiations for years, Reuters explains. Whether the government agrees that adding an ingredient enabling infused drugs to be given by injection will allow them to be considered new medicines and significantly delay eligibility for price negotiations is being closely watched. When Medicare issued negotiation guidelines earlier this year, it closed loopholes that could have allowed drugmakers to game the system by making small changes to drugs. Going from an immediate-release to an extended-release formulation would be one example.
Biogen agreed to acquire Reata Pharmaceuticals, which makes an approved therapy for a rare neurological condition, in a deal worth $7.3 billion, STAT notes. In February, Reata won approval for a drug that treats Friedreich’s ataxia, the first treatment to be authorized by the U.S. Food and Drug Administration for the condition, which causes progressive damage to the brain, nervous system, and muscles. The average life expectancy for a person with FA is in the mid-30s. The deal comes as Biogen seeks to recover from a number of stumbles, including a botched rollout of a controversial Alzheimer’s therapy and the departure of many executives.
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