ZorroCard Round Up (10/24/24)

Hey all,

today’s round up is all about drug pricing and where the money goes. The answer never where its intended. Enjoy the round up!

Jacob Brody (Co-Founder & CEO at ZorroCard)

Faulty CMS IRA Savings Projections (Linkedin): William Sarraille, former Sidley Austin Partner, had an interesting post that argues CMS’s projected $6 billion in savings from drug price negotiations, particularly from Stelara, is unrealistic. He suggests that Johnson & Johnson’s shift to promote Tremfya instead of Stelara, combined with insurers’ preference for high-rebate drugs, will reduce Stelara’s contribution to these savings. This dynamic could also harm biosimilar investment, threatening long-term cost reductions in healthcare. Full Article.

340B Program’s Financial Impact (Cost Curve): The article explores the growing revenues of the 340B program, noting that price increases don’t fully explain the surge, particularly with drugs like Keytruda and Biktarvy. Instead, the issue lies in the expanding use of high-cost oncology drugs. Critics argue that the 340B program’s rising costs hurt broader healthcare programs like Medicaid, prompting calls for reform. The lack of transparency and the hospital lobby’s influence complicate efforts to address these issues. Full Article.

Novo Nordisk asks FDA to block compounded versions of Ozempic (Stat News): Novo Nordisk has petitioned the FDA to prevent compounding pharmacies from making unauthorized versions of semaglutide, its weight-loss drug marketed as Ozempic and Wegovy. While semaglutide has been in shortage, pharmacies have been allowed to produce copies, but Novo argues the drug is too complex and risky to compound. Novo claims some compounded versions contain impurities, which could trigger immune responses, risking patient safety. Critics argue the request is financially motivated. The FDA is reviewing the petition. Full Article.