Tuesday, October 1, 2024

Trump renews push for ‘most favored nations’ policy

Presented by The Council for Citizens Against Government Waste: Delivered every Tuesday and Friday by 12 p.m., Prescription Pulse examines the latest pharmaceutical news and policy.
Oct 01, 2024 View in browser
 
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By David Lim

Presented by 

The Council for Citizens Against Government Waste
Driving The Day

Donald Trump speaks.

Former President Donald Trump intends to revive his call for a "most favored nation" policy to lower drug costs if he's reelected. | Matt Rourke/AP

TRUMP’S DRUG-PRICING PUSH — Former President Donald Trump wants to revive a pharmaceutical industry-reviled plan to have Medicare pay no more than other high-income countries for certain drugs if he wins reelection.

The policy, if successfully implemented, could upend how Medicare pays for certain prescription drugs given in hospitals and doctors’ offices — but Democrats worry Republicans will instead mount an effort to claw back President Joe Biden’s Medicare drug-price negotiations if they take control of Congress and the White House. The so-called most favored nations policy, however, ostensibly aligns Trump with progressive lawmakers who have pushed the idea for years.

“He obviously was interested in pursuing and has stated that he’s still interested in pursuing most favored nations, which is completely unorthodox from a Republican perspective,” said Theo Merkel, who was special assistant to Trump for economic policy at the National Economic Council.

A spokesperson for the Trump campaign said the former president would again pursue the most favored nations policy in a second term.

Déjà vu: Trump directed CMS to implement the experimental model in an interim final rule in late 2020 that was quickly struck down in court. But a second administration could learn from its prior legal defeat, said Rachel Sachs, a law professor at Washington University in St. Louis.

“An administration looking to do something like this has a potential roadmap if they want to strengthen the policy next time around,” Sachs said. “I do view the [CMS] statutory language as pretty expansive. It is possible that a friendly court could disagree.”

On Capitol Hill: A potential return of the policy earns mixed reactions from Republicans.

“I agree with the concept of it,” said Rep. Brett Guthrie (R-Ky.), who is running to be the top Republican on the House Energy and Commerce Committee next Congress. “A lot of nations across the world are free riders on our research. One of the moves is why not have the same prices as Canada and others. [But] then we lose the research.”

Guthrie said there needs to be a way for other countries to pay their fair share for costly drug development research.

His rival for the top slot on the powerful House committee, Rep. Bob Latta (R-Ohio), said he has not looked at Trump’s drug-pricing model, cautioning that he wants the U.S. to continue leading the world in drug development.

“We want to make sure in this country that we always lead the world and our Americans have every option that’s available for treatment,” Latta said.

IT’S TUESDAY. WELCOME BACK TO PRESCRIPTION PULSE. This San Francisco Giants fan is thrilled Buster Posey is taking a bigger role in the front office.

Reach out with tips and ideas to David Lim (dlim@politico.com or @davidalim) and Lauren Gardner (lgardner@politico.com or @Gardner_LM).

 

A message from The Council for Citizens Against Government Waste:

The 340B Drug Pricing Program was enacted in 1992 to help low-income and uninsured patients access affordable medications. But the law has deviated far from its goal and failed those it was meant to serve. Bad actors have hijacked the program and exploited its loopholes for their own profit. Congress must get back to work and enact legislation to provide affordable medication to those who should get the benefits. Learn more about 340B reform.

 
Eye on the FDA

The Food and Drug Administration building is pictured.

The FDA launches a reorganization today that restructures its oversight operations into four areas. | Reuters

REORG DAY — The largest reorganization of the FDA kicks into effect today — impacting about 8,000 employees.

The changes — which include renaming the Office of Regulatory Affairs to the Office of Inspections and Investigations — assign the agency’s oversight operations into four buckets: inspections, investigations, imports and emergencies.

David sat down with Michael Rogers, associate commissioner for regulatory affairs in the FDA’s new Office of Inspections and Investigations, to discuss the reorganization.

The interview has been edited for length and clarity. 

What is the goal of renaming the oversight office, and what tangible effects will it have?

Our compliance functions will be carried out by the centers, and so those activities and the associated resources are being transferred to the centers. If you think about the life cycle of an inspection, assignments are issued to the inspectorate by the centers that reflect their policies, either surveillance or for-cause inspections. The compliance function will now be carried out by the centers.

This new OII allows us to focus on our core activities: inspections, investigations, import operations and emergencies, with the managerial infrastructure to support those options.

The agency has lost staff to private-sector jobs the past few years. Will the reorganization provide incentives for top talent to work at the FDA? 

It is one of my top priorities to invest in our most important asset: our workforce. As a former investigator, one of the things that I’m trying to emphasize is to tell the story of the value of being on the front lines of FDA.

To address attrition, we’re looking at strategies to retain our highly qualified investigators in those areas where it’s difficult to attract people. One of those tools is the broader utilization of hiring authority.

Domestic and foreign inspections fell during the pandemic, and a backlog developed. Will the reorganization help the agency increase the number of routine inspections it conducts? 

I do, and I do believe that this will, this reorganization will make us more efficient. It certainly eliminates a lot of duplication of effort between the inspectorate and our centers.

The expectation is when we’re able to retain people, we’re able to accomplish inspections efficiently in both the domestic and international arena. There were a number of firms that were scheduled that have been impacted by the pandemic, and we are increasing in many areas.

One of the things I’d like to do is broaden the narrative around inspections to include regulatory coverage … our efforts to collaborate with foreign regulators, our efforts to collect samples at the border, our foreign supplier verification program, leveraging information from our state partners in the domestic arena, that all adds to what I would call the regulatory picture.

CALIFF, BUMPUS WEIGH IN ON ADCOMMS — The FDA continues to evaluate next steps for one of Commissioner Robert Califf’s priorities: overhauling how its 31 advisory committees operate.

Top FDA officials took to Nature Medicine on Monday, outlining six areas they are focused on: reducing paperwork burden, improving the utility of advice received from advisory committees, strengthening recruitment of committee members, standardizing ad comm practices across the agency, increasing public understanding of the role of advisory committees and ongoing collection of input on how advisory committees should work.

“Even when the final regulatory decision does not align with the predominant [advisory committee] viewpoint, that decision still has been deeply informed by [its] input,” Califf, FDA’s Emily Helms Williams, and Namandjé Bumpus, the FDA’s principal deputy commissioner, wrote.

Artificial Intelligence

ON THE HOME FRONT — POLITICO inks a partnership with Capitol AI to bring new artificial intelligence features to POLITICO Pro. Subscribers later this year will be able to “create custom reports seamlessly by locating, organizing and integrating our extensive library of political and policy reporting, intelligence and analysis,” POLITICO EVP Rachel Loeffler said.

 

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Pharma Moves

The FDA named Cheryl Anne Boyce associate commissioner for minority health and director of the Office of Minority Health and Health Equity in the Office of the Commissioner.

Document Drawer

On Monday, the FDA laid out its planned over-the-counter monograph agenda for the next three years, which includes a proposed order addressing the status of phenylephrine as an oral decongestant ingredient.

Johnson & Johnson abandoned its planned rebate model for its Stelara and Xarelto drugs in the 340B program on Monday after getting strong pushback from the Health Resources and Services Administration.

Senate HELP Committee ranking member Bill Cassidy (R-La.) has asked the FDA to clarify how drugmakers list patents in the Orange Book.

The Administration for Strategic Preparedness and Response created “adequate controls” for maintaining the Strategic National Stockpile’s physical security and inventory records despite some “inventory discrepancies,” the Government Accountability Office found.

WHAT WE'RE READING

Some of the top CEOs in health care saw their compensation fall last year compared with 2022, but the average CEO still made $11 million, STAT’s Bob Herman, J. Emory Parker, Lizzy Lawrence, Tara Bannow and Mohana Ravindranath report.

Hurricane Helene shut down Baxter International’s North Carolina North Cove site — its biggest manufacturing facility of IV fluid, Bloomberg’s Madison Muller reports.

 

A message from The Council for Citizens Against Government Waste:

Due to a lack of transparency and oversight, bad actors are taking advantage of the 340B Drug Pricing Program. Congress must enact reforms to the program with commonsense solutions to ensure patients receive affordable medications they deserve and prevent special interests from abusing the program. Clearly defining who is a 340B patient and limiting eligibility to only low-income patients is crucial to the future of the program. The health and well-being of millions of Americans depend on fixing the mess in 340B and the time for action is now. Learn more about the need for 340B reform.

 
 

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