Tuesday, November 17, 2020

And then there were two — HHS, FDA feud on tests — The rebate rule is back

Presented by CVS Health: Delivered every Tuesday and Friday by 12 p.m., Prescription Pulse examines the latest pharmaceutical news and policy.
Nov 17, 2020 View in browser
 
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By Sarah Owermohle

Presented by CVS Health

With Zachary Brennan, David Lim and Emily Martin

On Tap

— And then there were two vaccines though FDA review remains.

— HHS, FDA feud on tests, rehashing the lab-developed test debate.

The rebate rule is back and most-favored nations could be on its heels.

It's Tuesday, welcome back to Prescription Pulse. Has there been an editorial board piece like this one before? As always, send pharma tips and news to sowermohle@politico.com or @owermohle. Loop in David Lim (dlim@politico.com or @davidalim ) and Zachary Brennan (zbrennan@politico.com or @ZacharyBrennan)!

A message from CVS Health:

Since the start of the pandemic we've used our unique capabilities and unmatched local presence to help respond to the spread of the virus. We've opened 4,000 COVID-19 test sites since March, and administered nearly six million tests. We're helping businesses and universities safely reopen, and look forward to playing a critical role in the vaccine distribution process. None of this would be possible without the tireless efforts of our 300,000 employees. Learn more.

 
Coronavirus

AND THEN THERE WERE TWO — Moderna joins Pfizer in the ranks of promising coronavirus vaccines with a shot that's almost 95 percent effective in the first slice of Phase III data. Barring any last-minute safety or efficacy concerns, both companies will seek emergency use authorization within weeks — and millions of doses could be shipped in December.

"We should be celebrating," Akiko Iwasaki, an immunobiologist and professor at Yale School of Medicine told Zachary Brennan. "This is a big win for science."

While both vaccines are similarly effective with mostly mild side effects, Moderna's should be easier to distribute than Pfizer's because it can be refrigerated for 30 days, whereas Pfizer's can only be refrigerated for up to 24 hours.

Pfizer has not provided any data on severe Covid cases from its trial, but Moderna said that of the 11 severe cases in its trial so far, zero of those occurred in people receiving the vaccine. Paul Offit, an infectious disease doctor at Children's Hospital of Philadelphia and a member of the FDA committee tasked with reviewing the vaccines, called Moderna's severe data "dramatically striking."

What's next: Once the drugmakers file, FDA will convene an independent panel of experts to review the safety and efficacy data for each vaccine at a public meeting.

Ideally FDA would hold one advisory committee for both vaccines, said Eric Topol, director of the Scripps Research Translational Institute.

Offit also said he expects both vaccines to be reviewed in one committee meeting, possibly in early December.

What changes: More positive vaccine news means more potential shots for the first wave of high-priority people. Pfizer and Moderna each say they can bring 20 million doses to the table by the end of the year, meaning 20 million total people could potentially get vaccinated in that timeframe since each vaccine is a two-dose shot.

What doesn't: While those two and others with shots in late-stage trials — namely AstraZeneca and Johnson & Johnson — are ramping up production to supply billions of doses next year, widespread access still won't be likely until late spring or early summer.

And details on who exactly will receive these first doses has yet to be set. The government has said its highest priority will be the elderly, health care workers and others who are medically vulnerable, but states will also draw up distribution plans.

We also don't know who the vaccines are 90 percent to 95 percent protective for, Offit noted. Or to what extent they're effective for certain subgroups, like the elderly or people with preexisting conditions.

What else we know: Pfizer and Moderna's results suggest that other coronavirus vaccines targeting a portion of the coronavirus that invades cells, known as the spike protein, might prove effective too. That's good news for J&J and AstraZeneca.

Pfizer and Moderna also offer proof that vaccines made with the mRNA technology may work for other diseases. The data so far "highlight the power that the mRNA vaccine platform offers to very rapidly develop potent vaccine candidates and enter clinical trials," Amesh Adalja, senior scholar at Johns Hopkins Center for Health Security, said. "This will change the entire way we approach infectious disease emergencies in the future."

HHS, FDA FEUD OVER LAB DEVELOPED TESTS — HHS directed the FDA to conduct speedy reviews of emergency-use applications for coronavirus tests developed by labs for their own use — three months after stripping the agency of its ability to require review of the so-called lab-developed tests, David Lim writes.

"What we're speaking about here is whether universities primarily will be given the same liability protections as major corporate developers," HHS testing czar Brett Giroir said Monday. "Although these new [tests] will not make a significant impact on the nation overall, they are critically important, especially now with rising cases in many universities and university towns."

FDA leaders, including Commissioner Stephen Hahn, opposed HHS' move in August to revoke the agency's authority over lab-developed tests. But HHS said that labs could seek emergency-use authorization for their tests on a voluntary basis, which would provide them a liability shield they wouldn't otherwise have.

Last month, FDA said it would stop reviewing those voluntary applications to focus its limited regulatory resources on tests that could significantly increase the country's testing capacity or make testing easier. Now HHS has effectively overridden the agency's handling of lab-developed tests for a second time, by instructing it to complete reviews within 14 days.

The latest HHS policy "sounds legally incoherent" and is an effort to fix "absolutely foreseeable" consequences of the department's August action, said Jeffrey Gibbs, a medical device attorney at Hyman, Phelps & McNamara.

FDA isn't playing ball: The agency Monday updated its website doubling down on its stance of not reviewing LDTs.

 

HAPPENING THURSDAY - A CONVERSATION ON COVID-19, MENTAL HEALTH AND FLORIDA: The coronavirus pandemic—and the anxiety, isolation and disruption of routines and support that it has wrought—has exacerbated the mental health crisis in America. Join POLITICO for a forward-looking conversation on how we can emerge from this crisis with a strong approach to mental and behavioral health. Florida—one of the hardest-hit states in the nation—will be our case study. REGISTER HERE.

 
 
Drug Pricing

IT'S BAAACK — The rebate rule — yes, really — landed at the White House Office of Management and Budget on Friday. Trump revived the once-scrapped plan to eliminate rebates that drugmakers pay to pharmacy benefit managers with an executive order this summer.

...But the order also stated that the rebate plan could not raise patients' costs or taxpayer spending. Regulators projected that the original rule would raise federal spending by nearly $200 billion over 10 years — so the new rule could look pretty different.

And most-favored nations? The other once-stalled rule, which would link Medicare payments to much lower costs abroad, has also found new momentum in recent weeks, sources familiar with the talks tell Prescription PULSE. But the administration never issued a real draft of the plan — so attempts to leapfrog standard rule-making steps like public comment are likely to meet legal challenges.

 

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Transition 2020

SLOW TRANSITION COULD HAMPER VACCINE DISTRIBUTION NIAID Director Anthony Fauci suggested Monday that the Trump administration's refusal to begin the transition of presidential power could not only harm the federal coronavirus response at the pandemic's most dire moment, but might also stall the rollout of potential vaccines.

Fauci, the nation's top infectious disease expert, told NBC's "Today" show, "We want a smooth process for [the transition]. And the way you do that is by essentially having the two groups speak to each other and exchange information."

Biden team forging ahead. Though the transition team's hands are tied when it comes to speaking directly with government staff, President-elect Joe Biden's experts are lining up meetings with vaccine experts. Biden's coronavirus advisers plan to meet this week with companies including Pfizer, chief of staff Ron Klain said Sunday. Biden on Monday also upped the pressure on the Trump administration, warning that "More people may die if we don't coordinate."

Eye on FDA

COVID DELAYS FDA INSPECTION, PUSHING BACK LYMPHOMA DRUG DECISION — Bristol-Myers Squibb said Monday that Covid-19 prevented the FDA from inspecting a Texas-based manufacturing site that's producing the company's potential new cell therapy, known as lisocabtagene maraleucel, for the treatment of adults with relapsed or refractory large B-cell lymphoma.

FDA said in July that it was planning to restart some domestic manufacturing inspections, but this is the second time in as many months that the agency has delayed or rejected a drug because of its failure to conduct an inspection.

 

KEEP UP WITH THE GLOBAL HEALTH AGENDA IN 2021: If nothing else, the past year has revealed how critical it is to keep up with the politics, policy, and people driving global health. A new Biden administration comes with the expectation that America will reclaim its leadership on global health. But will it be that easy? What impact could Joe Biden's presidency have on global vaccine access and the international response to the pandemic? Our Global Pulse newsletter connects leaders, policymakers, and advocates to the people, and politics impacting our global health. Join the conversation and subscribe today.

 
 
MEDICAL DEVICES

WARREN, GRASSLEY WANT FDA TO RELEASE OTC HEARING AID REGS — Sens. Elizabeth Warren (D-Mass) and Chuck Grassley (R-Iowa) on Monday urged FDA to release a proposed rule to establish a regulatory framework for over-the-counter hearing aids.

The FDA Reauthorization Act of 2017 required FDA to issue the framework by August 18, 2020, but the agency has not yet taken action.

"Despite the pandemic, hearing loss continues to be a problem for millions of Americans, and we believe that the FDA must also make issuing the OTC hearing aid regulations a priority, consistent with the law," Warren and Grassley wrote.

Public Health

FIRST IN RXP: SOME PLANS NOT COVERING PrEP ENTIRELY — Some insurance plans are not in compliance with federal requirements to offer HIV prevention medicine known as PreP with no patient cost-sharing, according to an HIV+Hepatitis Policy Institute study first shared with POLITICO.

The requirement is rooted in an ACA measure. The law says payers must completely cover medicines starting one year after a "grade A" recommendation from the U.S. Preventive Services Task Force — which PreP achieved in June 2019.

HIV+Hepatitis Policy Institute reviewed 2021 plans and found a number of Kaiser Permanente plans in Colorado, Georgia and Washington state have Truvada and Descovy, two brand name PrEP drugs, listed on higher copayment tiers, Brianna Ehley reports. Similar patterns were found with BrightHealth, Georgia's Ambetter and CareSource, and Connecticut's ConnectCare.

A message from CVS Health:

Our mission of helping people on their path to better health has never been more relevant, as the nation faces the grim realities of a pandemic. As an essential business our doors have remained open, and our frontline employees have helped millions of customers and patients safely fulfill their health care needs, from filling a prescription to seeing a MinuteClinic practitioner. Our Coram nurses have helped create hospital bed capacity by transitioning eligible IV-therapy patients to home-based nursing care. Use of our telehealth offerings has increased dramatically as more people discover this convenient option. We're not just your corner drugstore – we're a diversified health services company transforming health by meeting people where they are and making health care more accessible, affordable and simply better. Learn more.

 
Pharma in the States

CUOMO THREATENS TO SUE FOR VACCINES — New York Gov. Andrew Cuomo is promising to "mobilize an army" to ensure that Black and brown New Yorkers have equal access to any coronavirus vaccines, and threatened a lawsuit against the Trump administration if its distribution plan isn't overhauled to make that possible, POLITICO New York's Bill Mahoney reports.

"The Trump administration is designing the distribution plan, and their plan basically has private health care companies administer the vaccines," Cuomo said in a Sunday speech, the latest salvo in a months-long feud between Cuomo and the White House about its vaccine distribution plans.

He added that the inequities in the distribution plan are exacerbated by the lack of federal aid that could help states ramp up their efforts even while facing budget shortfalls.

CALIFORNIA VOTERS PASS STEM-CELL FUNDING — California voters narrowly approved Proposition 14, a $5.5 billion bond measure to continue funding the state's one-of-a kind stem cell research agency dedicated to finding cures for such conditions as paralysis, Parkinson's and Alzheimer's diseases.

The ballot initiative succeeded with 51 percent supporting additional funding to keep the California Institute for Regenerative Medicine in operation. The bond measure comes with overall costs estimated at $7.8 billion over 30 years, including interest, POLITICO California's Victoria Colliver writes.

Quick Hits

Business Insider looked at the six freight companies best equipped to deliver Pfizer's Covid-19 vaccine to populations around the world once the vaccine is ready.

— Conservationists fear an increased demand for squalene, or shark liver oil, for vaccines could further imperil vulnerable shark species, National Geographic reported. The demand comes as one coronavirus vaccine candidate, developed by the University of Queensland in Australia, uses the squalene as a boosting agent.

— Canadian drugmakers made a last-ditch proposal to the government to reverse parts of a drug pricing crackdown set to go into effect Jan. 1, Reuters reported.

Document Drawer

FDA will not enforce certain requirements under the convalescent plasma emergency use authorization until Feb. 28 as part of an effort to meet the immediate need for plasma to treat hospitalized patients with Covid-19.

FDA issued draft guidance outlining information that industry should provide in documentation and applications to demonstrate electromagnetic capability of medical devices.

FDA issued final guidance that amends certificates of confidentiality to prohibit a researcher from disclosing sensitive information about a participant unless a specified exception applies.

 

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Sarah Owermohle @owermohle

 

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