CVS SPAM Lawsuit, Are Drug Imports Safe, J&J Loses 340B Lawsuit

Hey all,

Happy Monday! I’m seeing a lot more lawsuits against health insurers and their many subsidiaries. I’m waiting to see if they result in slaps on the wrist or real reform. Enjoy the rundown!

Jacob Brody (Co-Founder & CEO, ZorroRX)

(AP News) Louisiana Lawsuits Against CVS Over Text Messages and Drug Pricing Practices

Louisiana has filed multiple lawsuits against CVS, accusing the pharmacy giant of misusing customer data for political lobbying via text messages and using its market dominance to inflate drug prices and harm independent pharmacies. The lawsuits stem from a June 11 mass texting campaign by CVS warning of potential store closures and higher medication costs if proposed legislation—aimed at limiting CVS’s business structure—passed, which officials argue was deceptive and exploitative of customer trust. I have a hard time believing CVS would do something illegal—unless you count overcharging Medicare and MassHealth, or those occasional run-ins with the Controlled Substances Act and False Claims Act.Full Article

(ProPublica) FDA Drug Import Exemptions and Safety Concerns

A ProPublica investigation has revealed that the FDA quietly granted import exemptions to over 20 foreign drug factories with serious safety violations, allowing potentially substandard medications into the U.S. despite internal resistance and without informing the public or Congress for years. Intended to ease drug shortages, the exemptions—often extended for years—have raised alarms among current and former FDA officials who fear contaminated or ineffective drugs are reaching patients due to limited oversight, unreliable testing, and a lack of transparency. Most of the factories with the most serious violations were located in India and China, where oversight remains especially challenging: Full Article.

(Endpoints News) J&J Dealt Blow in 340B Rebate Model Dispute 

A federal judge ruled that Johnson & Johnson must obtain government approval before implementing its 340B rebate model, affirming HRSA’s authority to regulate rebate structures under the drug discount program. The decision strengthens HHS’s position in ongoing disputes with pharma companies over the 340B program, which provides discounted drugs to hospitals serving low-income patients, and follows similar rulings against other major drugmakers.  And let’s be honest—if pharma handled 340B rebates on their own, hospitals might see those checks sometime between “eventually” and “never.” Full Article.