HHS dips toe into regulating drug prices

Big drug pricing news that somehow didn't make a splash this week: the Biden administration is requiring Regeneron to keep its U.S. list prices lower than those in other high-income countries when it sets the cost of its new Covid-19 treatment, experts told me.

HHS conditioned government funding on the agreement. The context is limited, and it's unclear how many people would actually buy the treatment on the commercial market, anyway. But it is an example of how similar agreements could be used in the future.

Christopher Morten, an associate clinical professor of law at Columbia University, called the move "one of the most significant executive actions Biden has taken on drug pricing." Read more from other experts who weighed in on what we know, and don't know about the deal.

congress

A big health care House vote on the calendar... for now

Republican House leadership has officially placed compromise legislation on health care price transparency and minor payment reforms on its suspension calendar, which means it could get a floor vote as early as next week.

However, a lot is still in flux — beyond some Democratic leadership being split on the bill, the House is juggling a host of other pressing priorities, including funding the government, an impeachment inquiry, and a laundry list of expiring deadlines. Considering a bill under suspension of the rules is usually used for non-controversial bills, and leadership would need two-thirds of the House, instead of half of the chamber, to pass it. Here's what's in it.

providers

Hospitals consider taking cancer drug shortages into their own hands

Adobe

A House subcommittee will hold a hearing today on what the government can do to stem drug shortages, and my colleague John Wilkerson has a story about what some hospitals already are doing.

A group of hospitals launched Civica Rx in 2018 out of frustration with drug shortages and the resulting price spikes. Since then, shortages have plagued many cancer drugs, and the nonprofit is considering moving into chemotherapies beyond the one for which it already contracts.

To give makers of generic injectable drugs the predictability they need to reliably produce sufficient quantities of drugs, Civica Rx members commit to long-term purchase contracts at fixed prices. In return, Civica Rx maintains a buffer supply, often enough to double the minimum amount that hospitals commit to. Civica Rx also vets drug manufacturers to avoid shortages due to unexpected production disruptions. The publicly traded group purchasing organization Premier runs a similar program for its members. Read more.

science

Where is the next cancer moonshot landing?

The latest phase of President Biden's longtime goal to end cancer deaths is here, and while its roughly 50 programs are ambitious, some advocates are confused, questioning why NASA is in the room and how this slate of goals gets funded, STAT's Sarah Owermohle and Angus Chen report.

While the first moonshot funneled money almost entirely to early-stage cancer research, its sequel is broadening efforts to prevent cancer deaths — particularly through anti-smoking efforts — and introduces a new focus on research infrastructure and patient engagement. That has a lot of researchers excited. But others are sounding the alarm, questioning why the bulk of the missions are being led by another of Biden's personal projects, the recently launched Advanced Research Projects Agency for Health, rather than the massive and well-funded National Cancer Institute. Read more on what to make of the push.

court watch

Save the date, drug pricing edition

The first crucial court hearing for the Biden administration's new Medicare drug price negotiation program is coming up tomorrow at 2 p.m. If you're busy, don't sweat it! I'll be writing a dispatch.

The hearing is in an Ohio district court in a lawsuit filed by the Chamber of Commerce. The Chamber asked the court to grant a preliminary injunction, which could stop the program from being enacted, by Oct. 1.

The Biden administration, on the other hand, says the case should be tossed out since the Chamber doesn't have enough of a reason to file a lawsuit.

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