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FDA Approves First Long Acting G-CSF – Rolvedon

The FDA recently approved a BLA for Rolvedon (eflapegrastim-xnst) from Spectrum Pharmaceuticals. It has an indication to decrease the incidence of infection, as manifested by febrile neutropenia, in adult patients with non-myeloid malignancies receiving myelosuppressive anti-cancer drugs.

Rolvedon is a recombinant human granulocyte-colony stimulating factor (G‐CSF). Spectrum said the FDA action marks the first novel long-acting GCSF (LA-GCSF) product approval in over 20 years.

Spectrum did not release pricing for the new therapy. Although it is a long-acting formulation, market pick-up remains to be seen given the range of available colony stimulation options. The company plans to commercially launch the injection in Q4.

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FDA Approves Eflapegrastim for Chemo-Induced Neutropenia

by Chris Ryan

The FDA has approved eflapegrastim-xnst injection to decrease the incidence of infection, as manifested by febrile neutropenia, in adult patients with non-myeloid malignancies receiving myelosuppressive anti-cancer drugs associated with clinically significant incidence of febrile neutropenia.

The FDA has approved injection to decrease the incidence of infection, as manifested by febrile neutropenia, in adult patients with non-myeloid malignancies receiving myelosuppressive anti-cancer drugs associated with clinically significant incidence of febrile neutropenia.1

The approval was supported by data from the phase 3 ADVANCE (NCT02643420) and RECOVER (NCT02953340) trials, where eflapegrastim demonstrated the pre-specified hypothesis of non-inferiority vs pegfilgrastim (Neulasta) in mean duration of severe neutropenia with a similar safety profile to pegfilgrastim.

“Eflapegrastim’s approval marks Spectrum’s transformation to a commercial-stage company with the opportunity to compete in a $2 billion dollar market, and offers a unique value proposition,” Tom Riga, president and chief executive officer of Spectrum Pharmaceuticals, stated in a news release. “This approval is a significant milestone for our development team and collaboration with Hanmi Pharmaceutical. On behalf of Spectrum, I would like to thank all of the patients, families, health care providers, and our own team members for bringing this goal to fruition.”

The ADVANCE and RECOVER trials both evaluated the efficacy and safety of eflapegrastim vs pegfilgrastim in the management of neutropenia in patients with breast cancer receiving docetaxel and cyclophosphamide.

ADVANCE and RECOVER enrolled patients with early-stage breast cancer who were randomly assigned to fixed‐dose eflapegrastim at 13.2 mg/0.6 mL(3.6 mg G‐CSF) or standard pegfilgrastim (6 mg G‐CSF) following standard docetaxel plus cyclophosphamide chemotherapy for 4 cycles.3,4 Subcutaneous injections of eflapegrastim or pegfilgrastim were administered on day 2 of each cycle, approximately 24 hours after chemotherapy. Patients received 75 mg/m2 of intravenous (IV) docetaxel and 600 mg/m2 of IV cyclophosphamide on day 1 of every 21-day cycle.

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FDA OKs Another Big $$ Therapy for ALS – Relyvrio

The FDA has just approved an oral suspension therapy, Relyvrio from Amylyx Pharmaceuticals, for ALS (amyotrophic lateral sclerosis or Lou Gehrig’s disease). Relyvrio joins a surprisingly competitive market for this rare condition. Five drugs were previously approved to treat ALS and its symptoms and include Radicava, Rilutek, Tiglutik, Exservan, and Nuedexta. 

What is noteworthy about Relyvrio is that it is a combo therapy created by combining two, long available ingredients. The first, taurursodiol, is an over-the-counter supplement sometimes used to regulate liver enzymes. The other component is sodium phenylbutyrate, a prescription medication for a pediatric urea disorder. 

With fewer than 25,000 or so eligible patients in the US, Relyvrio will need to slug it out to gain market share. However, Relyvrio was approved with no black box warnings and a history of off label utilization within the ALS population. The FDA must have felt comfortable as it granted approval well before clinical trials were completed citing the demand for incremental options for patient relief.

Relyvrio will hit the streets at a cool $158,000 annually….. slightly less costly than its nearest competitor, Radicava. Given the rare status of the disease it is expected that Relyvrio will launch through limited distribution.

CLICK HERE to access prescribing information

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The new drug, marketed as Relyvrio, has a list price of $158,000 a year.

By Pam Belluck

Sept. 30, 2022

A new medication for A.L.S., the devastating neurological disorder that causes paralysis and death, will have a list price of $158,000 a year, its manufacturer disclosed Friday.

The treatment, to be marketed as Relyvrio, is a combination of two existing drugs and will be available to patients in the United States in about four to six weeks, according to officials of the company, Amylyx Pharmaceuticals.

Relyvrio was approved by the Food and Drug Administration on Thursday, even though the agency’s analysis concluded there was not yet sufficient evidence that the medication could help patients live longer or slow the rate at which they lose functions like muscle control, speaking or breathing without assistance.

The F.D.A. decided to greenlight the drug instead of waiting until 2024 for results of a large clinical trial partly because the treatment is considered to be safe. The agency said that although the evidence of effectiveness was uncertain, “given the serious and life-threatening nature of A.L.S. and the substantial unmet need, this level of uncertainty is acceptable in this instance.”

A.L.S., or amyotrophic lateral sclerosis — also called Lou Gehrig’s disease — often strikes patients in the prime of life and frequently causes death within two to five years. It is diagnosed in about 6,000 people worldwide each year, and Amylyx estimates that there are about 29,000 people living with the disease in the United States.

The Fight Against A.L.S.

The illness, also called Lou Gehrig’s disease, robs people of their ability to move, speak, eat and ultimately breathe.

Relyvrio: The experimental treatment for A.L.S. conceived a decade ago by two college students received the Food and Drug Administration’s approval, despite questions about its effectiveness.

A Runner’s Mission: After surpassing the average life expectancy for people with the disease, Andrea Peet decided to race a new kind of clock: 50 marathons in 50 states.

Brain Implant: A man who is fully paralyzed by A.L.S. was able to communicate using only his thoughts.

Rethinking Care: In 2017, Brian Wallach was diagnosed with A.L.S. Now, his startup aims to help other patients make the most of their time.

Amylyx officials predicted that most patients would pay little or nothing for the treatment because the company expects insurers, both private and public, to cover it. Amylyx plans to provide it free to uninsured patients experiencing financial hardship.

Still, the list price is much higher than that recommended by the Institute for Clinical and Economic Review, a nonprofit organization that evaluates the value of medicines. In a statement, the group’s chief medical officer, Dr. David Rind, said that while “there are clear benefits to patients with a rapidly fatal disease to have early access to a safe therapy,” his organization had concluded that “an annual price of $9,100 to $30,700 would be reasonable if the therapy actually works.”

Dr. Rind added that “while awaiting proof, we believe that patients would benefit from a price closer to the price of production of Relyvrio rather than a price more than five times higher than the top of a value-based range.”

During an investor conference call on Friday, Justin Klee, a founder of Amylyx, said the price was chosen after meeting with insurers, patients, doctors and others. He said the company considered what would allow it to “invest in new treatments so that A.L.S. first becomes a manageable chronic condition and ultimately is cured,” and added that the price “allows Amylyx to sustain programs to help people who can benefit from Relyvrio access it.”

Her Face Started Drooping. What Was Wrong?

The F.D.A. has approved only two other A.L.S. medications. Riluzole, a tablet approved in 1995, can extend survival by several months and generally costs significantly less than $10,000 a year. Edaravone, marketed as Radicava, can slow symptom progression by about 33 percent. Radicava, which was originally approved in 2017 as an intravenous infusion, was approved this year in an oral form that carries a list price of $171,000 a year. Amylyx officials said they expected that, as in the company’s clinical trials, many patients would take Relyvrio, a powder that is mixed with water, along with one or both of the other medications.

Relyvrio was conceived by the founders of Amylyx, Mr. Klee and Joshua Cohen, when they were undergraduate students at Brown University less than a decade ago. They proposed that combining taurursodiol, an over-the-counter supplement sometimes used to regulate liver enzymes, and sodium phenylbutyrate, a prescription medication for a pediatric urea disorder, could protect neurons in the brain from damage in diseases like A.L.S. by preventing dysfunction of two structures in cells: mitochondria and the endoplasmic reticulum.

In an interview, Mr. Klee said the company expected that private insurers would cover the drug with no co-payments for patients, and he said that Amylyx would work to make it affordable for people on Medicare or Medicaid and provide it free to those without insurance who are financially struggling. Mr. Klee noted that patients had been obtaining the ingredients on their own for some time, buying the taurursodiol supplement from Amazon and paying up to $11,000 a month for the sodium phenylbutyrate.

“Now that our product is approved, we have to be laser-focused on making sure that people can access it,” Mr. Klee said.

Relyvrio’s clinical trials included patients who developed symptoms of A.L.S. within 18 months before the trial and were affected in at least three body regions, which is generally a sign of fast-progressing disease. The F.D.A.’s approval did not restrict which patients could use the medication. Mr. Cohen said in an interview that Amylyx didn’t have projections of how many would.

“There are patients who are just receiving the diagnosis today, and there are patients who are making end-of-life decisions today, and I think that people in different circumstances are going to make very different treatment decisions,” he said.

Amylyx has also conducted a small trial of Relyvrio in Alzheimer’s patients, and Mr. Cohen discussed plans to test it for other neurodevelopmental disorders.

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Is Shields Health Worth $2+ Billion?

A few weeks ago, a press release from Shields Health announced that it had obtained accreditation from URAC…… not as a dispensing specialty pharmacy but, rather, as a non-dispensing pharmacy(yes, there is such a thing). That was going to be the lead for today’s Report but, as things would have it, that news pales by even bigger news about Shields. 

The headline of greater significance is that Walgreens, which had already bought 71% of Shields for just under $1 billion, had plunked down yet another $1.37 billion for the remaining 29%!!! Yes, a grand total of about $2.3 billion.

We’ve rerun our Report issued in September 2021 (below) as it says all that needs be said about this latest bonanza for Shields. Bottom line, they are still not a pharmacy and they don’t seem to own any tangible assets. So, “Where’s the beef?” to warrant such a huge payday? That $2 billion is approximately 100% of total Rx revenue forecasted to be billed by all their contract hospitals in 2022…… not EBIDTA! 

From Anton Rx Report September 23,2021

Frequent readers of this report know that one of our favorite topics is health-system-owned specialty pharmacies. So, it was with great interest that we read the press release detailing that Walgreens (WAGS) has increased its stake in Shields Health Solutions to 71% for a total of $970 million.

Readers should recall our January 2021 report detailing Shields’ acquisition of ExceleraRx for an undisclosed amount. ExceleraRx, like Shields, had built a large network of 25 healthcare-system-owned specialty pharmacies. In combination, the expanded Shields network topped 65 hospitals and was forecast to reach $2 billion in specialty network revenue this year….. enough volume to really start impressing payors and manufacturers

We continue to be puzzled about both the earlier WAGS investment and this week’s doubling down. So, the big question is…. “Where does Shields earn the kind of $$$s to justify nearly a $1 billion investment?”

Shields (as with ExceleraRx) only offers hospitals a service. They build, operationalize and optimize integrated specialty pharmacies. They then can be hired to provide day to day management of the pharmacy. They also promote the SP network to payers to gain pharmacy provider contracts and to manufacturers to gain access to LD drugs. 

Shields Health is not listed as a pharmacy license holder by the several state Boards of Pharmacy which we checked today.  Rather, the hospitals that they represent in those states hold the community retail pharmacy licenses. So, the money paid for prescriptions dispensed by these hospital pharmacies goes to the hospitals, not Shields. 

Little is known about the Shields financial model. Hospitals have a huge advantage as they can acquire drugs under the least expensive hospital-class-of-trade rates. We already know about the price advantages they have under 340b. So, there is a boodle of $$s that a hospital can pay to Shields for managing their specialty pharmacy and running the national network on their behalf. Consider that the valuation of a PBM is calculated in a not too dissimilar fashion

What does Walgreens see in Shields?

In 2019 WAGS likely saw the writing on the wall….. that hospitals would eventually wise up and open their own specialty pharmacies to recoup lost revenue. WAGS has a history of working with hospitals opening a number of on-campus pharmacies in recent years. The Shields model fit that strategic mindset…. which likely prompted the initial investment. The ExceleraRx acquisition gave the model some serious traction, so this week’s move is less surprising. Last thought…. tactically, WAGS has ensured that they will be at the table with many very influential hospitals, payers, and manufacturers. That’s a good place to be. Just sayin’

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Walgreens Boots Alliance is buying the rest of the specialty pharmacy company Shields Health Solutions for $1.37 billion.

September 20, 2022 — The nation’s largest drugstore chain said it has “entered into a definitive agreement to acquire the remaining 30% stake” of Shields from equity holders in the specialty pharmacy company that include private equity firm Welsh, Carson, Anderson & Stowe and the company’s founder and board chairman Jack Shields. The deal is expected to close by the end of the 2022 calendar year.

Specialty pharmacies are an increasingly important player in the U.S. health system given the flood of expensive drugs on the market derived from biotechnology. Such medicines are more complicated than pills and capsules picked up at the corner drugstore and often require specialty administration, refrigeration, package and patient instructions.

“Our full acquisition of Shields will complete another major milestone as part of our consumer-centric healthcare strategy to drive sustainable long-term growth, and we are very pleased with our partnership and integration with Shields,” Walgreens chief executive Roz Brewer said Tuesday. “We can now make further progress on our strategy through Shields’ integrated model, increasing our value to health systems, expanding access to payor partners and supporting improved outcomes and lower costs.”

Shields has nearly 80 health system partners representing approximately 1,000 hospitals nationwide that serve more than 1 million patients, the companies said. Walgreens made its initial investment in Shields in 2019.

“Shields will continue as a distinct business and brand within Walgreens,” Walgreens said in a statement. “John Lucey, co-founder and current president of Shields, will lead the organization as CEO of Shields, and current Shields CEO Lee Cooper will take on a new executive role within WBA. Lucey partnered with Jack Shields 10 years ago to start the business and has led its operations for most of that time.”

And, if you are interested in the footnote story related to Accreditation, here it is……

Shields Health Solutions Earns URAC Accreditation in Specialty Pharmacy Services

STOUGHTON, Mass., August 17, 2022–(BUSINESS WIRE)–Shields Health Solutions, the premier specialty pharmacy accelerator in the country, is proud to announce that it has earned URAC accreditation in specialty pharmacy services. URAC is the independent leader in promoting health care quality by setting high standards for clinical practice, consumer protections, performance measurement, operations infrastructure and risk management. By achieving this status, Shields Health Solutions demonstrates commitment to quality care, enhanced processes, patient safety and improved outcomes.

Shields currently partners with more than 70 health systems around the country and has helped their patients reduce co-pays, promptly receive medication delivery, often within two days, and improved medication adherence greater than 90 percent on average.

“Shields Health Solutions has a deep commitment to excellence in specialty pharmacy and the URAC accreditation marks another milestone in recognizing our high quality of care,” said Kate Campagnola, Director of Accreditation. “By continuing to improve patient access to care and supporting complex patients through an integrated care model, we are excited to continue our mission to improve health outcomes and decrease costs for complex patients.”

“Pharmacies and related pharmaceutical services play a critical role in the health care delivery system now more than ever. Given the complicated nature of chronic disease, organizations like Shields Health Solutions do much more than simply fill a prescription. As trusted experts at the frontline of care delivery, they often provide targeted patient support and education to ensure proper medication management,” said URAC President and CEO Shawn Griffin, M.D. “By achieving URAC accreditation, Shields Health Solutions demonstrates excellence in quality care delivery and their long-term commitment to ensuring patient safety and improving outcomes.”

About Shields Health Solutions

Shields Health Solutions is the premier specialty pharmacy accelerator in the country. The Shields Performance Platform, an integrated set of solutions, services and technology, is intentionally designed to elevate payer and drug access for specialty pharmacies, elevate health outcomes for complex patients, and elevate growth throughout the entire health system.

CLICK HERE to view Standards for the Specialty Pharmacy Services (non-dispensing) Accreditation

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What Are Your  Customers’ Social Determinants of Health?

We reviewed a report from the Office of Disease Prevention and Health Promotion, a part of the U.S. Department of Health and Human Services some time ago and thought it was something worth refreshing. It detailed a variety of access barriers and we suggested that better understanding the scope of access challenges would be useful knowledge for anyone working in the specialty pharmacy segment, especially those that work in marketing, communications and web messaging. Today we turn up the heat.

Results from an AllianceRx Walgreen’s pilot program in 2021 also offer deep dive insights into the social determinants of health and, specifically, how these determinants impact patient access to health.

Here are the key areas of inquiry…..

  • Safe housing, transportation, and neighborhoods
  • Racism, discrimination, and violence
  • Education access, job opportunities, and income
  • Access to nutritious foods and physical activity opportunities
  • Polluted air and water
  • Language and literacy skills

The findings are highly insightful and are appropriate for leadership in specialty pharmacies as well as those involved in communications to better know their customers.

CLICK HERE to access the report findings 

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How Specialty Pharmacies Address Social Determinants of Health

Specialty pharmacies are uniquely positioned to identify social determinants of health that could impact medication adherence and health outcomes.

Specialty pharmacies play an integral role in ensuring patients receive, understand, and adhere to medications prescribed by their providers. This role also includes coordinating the numerous aspects of patient care and disease management.

“Specialty pharmacies are responsible for assisting patients through their treatment journey, which in many cases may be a lifelong journey with many complexities and challenges,” says AllianceRx Walgreens Prime Vice President of Clinical and Professional Services Rick Miller, MS Pharm, MBA, BS Pharm, CSP.

Article continues…………

CLICK HERE to read the full article

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CVS Legal Woes Continue

It’s been a rocky road for CVS of late. In July, CVS was assessed a multi-million $ fine in an arbitration case filed by a small specialty pharmacy (see our report on 7/14/2022) and now, CVS is facing a major anti-trust suit by the State if New York relating to how it self-directed prescriptions for Part D members.

Here’s the skinny…..

On July 28, 2022, the Attorney General of the State of New York (NYOAG) brought an antitrust suit against CVS Health in Manhattan state court. The NYOAG accused CVS of violating the Donnelly Act, New York’s state antitrust law, by illegally tying access to contract pharmacy services at CVS retail and specialty pharmacies to the use of a third-party administrator (TPA) called Wellpartner, a company CVS acquired in 2017. The business segment in question is the CVS Silverscripts Part D membership and also the the role played by CVS Caremark, its PBM.

The NYOAG requests civil monetary penalties and to enjoin CVS’s anticompetitive conduct and require CVS to notify New York 340B hospitals that exclusive use of Wellpartner is no longer required. More surprisingly, the NYOAG also seeks “equitable relief which could include an injunction and an order of divestiture” of the Wellpartner business.”

Oh what a tangled web…….

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Whistleblower suit: CVS prevented Part D members from accessing generics

A lawsuit against CVS Health comes as policymakers are turning up the heat on pharmacy benefit managers. 

A newly unsealed whistleblower suit claims that multiple CVS Health subsidiaries coordinated to prevent members from accessing generic drugs in a bid to boost the bottom line.

The suit was filed by Alexandra Miller, who worked at CVS for nearly two decades before leaving the company three years ago. When she reported the behavior to a superior, she was told that the company had decided the benefits of the alleged scheme outweighed the likelihood of being caught.

Miller claims that CVS’ SilverScripts Part D subsidiary as well as its Caremark pharmacy benefit manager and retail pharmacies worked together to prevent access to generics, which allowed it to pocket higher rebates because members were pushed to buy branded medications rather than lower-cost options.

Members were also often kept in the dark about potential authorized generic medications or identical drugs that are produced by the same manufacturer but offered at a lower cost.

The company violated Medicare regulations by…………. 

CLICK HERE to read the full article

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What’s Your Value Based Contracting Knowledge Level?

We’ve written numerous times about value-based contracting (VBC)….. including earlier this week. When it emerged a few years ago there was much hope that VBC would offer some remedy to the acceptance of ultra-high cost therapies that have been the predominant source of new specialty FDA approvals for the last few years. However, relatively few VBCs have been implemented due to their complexity. 

Value methodologies have begun to morph. In fact, the term ‘value-based contracting’ is now a bit too high level. Are you familiar with the nuanced differences between value-based pricing (VBP), value-based insurance design (VBID), long-term financing (LTF), and outcomes-based contracts (OBCs)? If not, the time may be neigh to get up to speed.

We ran across an abstract (below) that does a very nice job of taking our understanding of VBC to the next level. It summarizes the views of 22 health plans with multiple lines of business collectively covering more than 34 million beneficiaries. These plans are large enough to have dipped their toes into the VBC pond and/or thought long on the inherent challenges.

The initiative identified four business objectives including access to new therapies, their rising costs, spending variability across the patient spectrum, and the incidence of reduced levels of clinical evidence. Additionally, the initiative selected five operational strategies including developing new UM controls, the need for increased patient engagement, including providers in the risk sharing methodologies, expansion of data analytics unique to each contract, and the need to staff more pharmacists, statisticians, and data scientists to be experts in the unique aspects of managing each contract.

The contracting world is less and less satisfied with rebates and is looking for something else to fuel the specialty pharmacy engine. VBC is a no brainer IF design and implementation can be refined. So, if you want to keep abreast of that trend, consider the lessons offered. 

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Value-Based Management of Specialty Drugs:

Practical Considerations and Implications for Pharmacy

May 13, 2021 — Policy makers and health plans seek value-based management of specialty drugs. This study examines real-world factors that favor some approaches over others and their potential impact.

ABSTRACT

Objectives: Concerns about high and rising drug prices have prompted a call to manage prescription drugs according to their value. Although not all proposals referred to as “value based” are well suited to advance this mission, health plans must select among them under the influence of competing demands and constraints of their market and nonmarket environments. To understand the implications for health policy, we sought to explore how health plans might select among and implement these approaches for specialty pharmacy (SP) under the incentives and barriers that these conditions create.

CLICK HERE to access the full abstract.

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Delaware Medicaid Pens Value-Based Contracts

Value Based Contracting….. the great hope for fixing many of the disparities in access and payment for pharmaceuticals, especially those that cost a boat load of bucks!

Our curiosity was piqued by the article below detailing a major value-based contracting initiative by Delaware Medicaid. The program will target a quarter million lives in the state. It will include three payor organizations – . AmeriHealth Caritas, Highmark Health Options and Centene Corp.’s Delaware First Health.  Selection was based on each payor’s willingness to implement reforms to migrate the system away from traditional fee-for-service (FFS)/volume-based care to a system that focuses on rewarding and incentivizing improved outcomes, quality improvement and reduced expenditures.

Unfortunately no detailed terms of the VBC terms were disclosed. What is noteworthy, however, is the fact that a major account like Delaware Medicaid has made the leap to try a VBC program. Hopefully some proofs of concept will be forthcoming over the first year of implementation. 

Specialty pharmacies may want to follow VBC development as they can play a key role in the administration of these contracts….. something that we’ve said many times over the past couple of years.

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Centene Will Join Delaware in Value-Based Medicaid Revamp

With a focus on value-based care, health equity and social determinants of health, Delaware recently selected three managed care organizations to serve some 280,000 Medicaid and CHIP recipients through the statewide Diamond State Health Plan and DSHP Plus managed care programs. Incumbents AmeriHealth Caritas and Highmark Health Options Blue Cross Blue Shield were both chosen for the new pacts, while Centene Corp.’s Delaware First Health will round out the trio of plans. 

New contracts mark state’s shift to value-based care 

•            Delaware’s Medicaid managed care program is currently operating under the authority of a Section 1115 demonstration waiver that was most recently extended through Dec. 31, 2023. It provides integrated physical health, behavioral health and long-term services and supports (LTSS) to eligible Medicaid and CHIP enrollees. 

• According to AIS’s Directory of Health Plans, Highmark Health has the largest share of lives (55.6%) with 156,267 enrollees. AmeriHealth Caritas serves 84,144 lives, while the remaining 40,395 Medicaid/CHIP beneficiaries are in fee-for-service Medicaid. The new five-year pacts will be effective Jan. 1, 2023, with three optional one-year extensions. 

• In its December request for proposals, the Delaware Dept. of Health and Social Services’ Division of Medicaid and Medical Assistance asked bidders to describe how they plan to implement a value-based purchasing model in the first year of the contract. The state in its RFP said it intends to “accelerate the implementation of reforms and innovation within Delaware’s health care delivery system to migrate the system away from traditional fee-for-service (FFS)/volume-based care to a system that focuses on rewarding and incentivizing improved outcomes, quality improvement and reduced expenditures.” 

Win supports Centene’s growth story 

• The award will mark the 30th state where Centene has Medicaid plans; its Ambetter Affordable Care Act exchange product is available in 25 of its current 29 Medicaid states. 

• Assuming Centene will serve one-third of the total population, the new contracts will contribute approximately 2 cents to Centene’s earnings per share and add more than $700 million to the company’s revenues, estimated Oppenheimer & Co., Inc. 

•  “Although the contribution is modest, we believe this represents incremental growth and reflects favorably on the positioning of the business,” wrote securities analyst Michael Wiederhorn in a July 12 note to investors. “Overall, we continue to believe Centene is deploying the correct strategy with its value creation plan by focusing on its core strengths.” The firm maintained an outperform rating for Centene. 

•  The state plans to hold an open-enrollment period for the new program starting on Oct. 1. For individuals who are required to enroll in a DSHP or DSHP Plus MCO and fail to voluntarily choose one, they will be automatically assigned to an MCO and be informed of their auto-assignment, according to the RFP. 

by Lauren Flynn Kelly, AIS Health

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Report Says Biosimilars Are Saving $$s – Sort of

Several recent reports have touched on biosimilars and today we’ll offer up some new data that shows how pricing is being impacted.

A new university study drills down into the pricing trends of two well-established follow on biosimilars, Fulphila and Udenyca, as well as Neulasta, their reference product.

Here’s what’s interesting…..
The use of pegfilgrastim biosimilars was associated with lower patient OOP costs….. but the biosims did not generate the lowest health plan costs! As noted below, out-of-pocket costs were 47% to 59% lower for patients overall, but, payer costs were actually lower for Neulasta vs. the biosimilars. Go figure! Bottom line, the researchers found no significant differences in febrile neutropenia treatment and management costs between biosimilars and the brand product.

So, we can see two things in this analysis.
First, the list price of Neulasta has dropped significantly since competition appeared on the scene.
Second, rebates further mask how patient out of pocket costs are assessed while payer costs are still likely to be even lower than the study was able to document.

Oh what a tangled web….. even with data.


No Significant Cost Savings From Neulasta Biosimilars for Payers

A study of Neulasta (pegfilgrastim) compared with its biosimilars in the prevention of febrile neutropenia has shown savings for patients but not for payers.

Use of Neulasta and other white blood cell growth stimulators is recommended as prophylaxis to lower the risk of infection following myelosuppressive chemotherapy. However, real-world studies of the savings have been lacking, according to lead author Ching-Yu Wang, M.S., of the Department of Pharmaceutical Outcomes and Policy at University of Florida in Gainesville, and his co-authors.

Wang and his co-authors acknowledged that competition from Neulasta biosimilars, five of which have been approved by the FDA since 2018, has succeeded in pushing down the price of Neulasta. By the second quarter of 2021, Neulasta’s average sales price had dropped 41%, according to its maker, Amgen.

But if appearances are to be believed, Neulasta, despite being the reference brand, is not selling at a premium to its biosimilars. Wang and his co-investigators said that during the 2019, one-year period they selected for retrospective analysis of commercial payer data, there was no significant difference in payer costs for febrile neutropenia management between Neulasta and two of its biosimilars, Fulphila (pegfilgrastim-jmdb) and Udenyca (pegfilgrastim-cbqv). They reported their findings in the July 2022 issue of the Journal of Managed Care and Specialty Pharmacy.

One major limitation of that finding, though, was that information was not available on discounts and rebates manufacturers gave to payers to incentivize preference of Neulasta or the biosimilars.

“For managed care pharmacies interested in adopting pegfilgrastim biosimilars, prices offered by manufacturers after considering all discounts and rebates is a determining factor,” Wang and his co-authors wrote.

The study looked at costs of primary prophylaxis use of the reference product and its biosimilars for patients receiving chemotherapy in the first cycle. Patients were predominantly treated for breast cancer (> 64%), lung cancer, and non-Hodgkin lymphoma.

Data show that out-of-pocket (OOP) costs were 47% to 59% lower for patients who received biosimilars as primary prophylaxis for febrile neutropenia. Again, there were limitations attached to this finding. One was that 67% to 83% of patients paid nothing for treatment in the first cycle, possibly because of manufacturer patient support programs or possibly because patients had maxed out their deductibles and co-pay requirements by the time Neulasta and the biosimilars were prescribed, the researchers noted.

In the study (N = 1,930), 46% of patients used Neulasta; 22%, Fulphila; and 32%, Udenyca. The respective per-patient, per-cycle reference drug or biosimilar OOP costs were $299, $182, and $159, Wang and his co-authors wrote.

Payer costs for the biologic drugs were clustered in a narrow range: Neulasta, $5,618; Fulphila, $5,783; and Udenyca, $5,845.

When it came to per patient, per cycle febrile neutropenia treatment and management costs, health plan costs, and total costs overall, there were no significant differences for patients who received either the reference product or its biosimilars, study authors said. OOP treatment costs for patients were $192 for Neulasta, $197 for Fulphila, and $240 for Udenyca. The respective FN treatment costs for health plans were $2,804, $2,970, and $2,745.

Although savings studies of Neulasta vs biosimilars are rare, use of Neulasta biosimilars could produce savings that enable expanded access to treatment for patients with non-Hodgkin lymphoma, according to a recent simulation study led by Ali McBride, Pharm.D., M.S., BCOP, former clinical coordinator of hematology/oncology at the University of Arizona Cancer Center and currently director of health economics and outcomes research for Bristol Myers Squibb.

McBride was also lead author on another recent simulation study that suggested significant cost efficiencies are possible by switching patients from the Neulasta on-body injector to standard Fulphila injections. Those potential savings were based on on-body injector failures and related FN hospitalization costs.

Tony Hagen, Managed Healthcare Executive

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FDA Approves New Sub-q Tx for Asthma – Tezspire

The FDA recently approved a new subcutaneously administered therapy, Tezspire (tezepelumab-ekko) from AstraZeneca AB and Amgen, as an add-on maintenance treatment used to improve severe asthma symptoms when used with a patient’s current asthma medicine. Tezspire is approved for adults and children aged 12 years and older with severe asthma not controlled by their current asthma medicine.

Tezspire is a monoclonal antibody and the only biologic to date to significantly reduce exacerbations across a broad spectrum of severe asthma patients. This group accounts for roughly 10% of the world’s 339 million asthma sufferers.

The cost for Tezspire subcutaneous solution (210 mg/1.91 mL) is around $3,835 per vial which is the prescribed volume for the once monthly injection.

The companies did not release distribution details. It will be interesting to see if this therapy goes into limited distribution given the somewhat large patient population and ‘relatively’ low cost. If so, it may be the first specialty therapy approved in quite some time that has not gone LD. However, both Amgen and Astra Zeneca have long histories showing their preference for LD.

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FDA approves maintenance treatment for severe asthma

Action:

FDA has approved Tezspire (tezepelumab-ekko) injection as an add-on maintenance treatment used to improve severe asthma symptoms when used with a patient’s current asthma medicine. Tezspire is approved for adults and children aged 12 years and older with severe asthma not controlled by their current asthma medicine. Tezspire is the first asthma treatment targeting thymic stromal lymphopoietin, a molecule involved in airway inflammation. Tezspire is also the first treatment for severe asthma that is not limited to a specific type of severe asthma.

Tezspire is administered once every four weeks by a health care professional through a subcutaneous (under the skin) injection.

Disease or Condition:

Asthma is a long-term inflammatory disease that causes the airways of the lungs to become swollen or inflamed and can be triggered by several factors, including allergen or irritant exposure and viral infections. An asthma attack (exacerbation) can include wheezing, cough, chest tightness, and make it hard to breathe.

Severe asthma attacks can be intense, last for long periods of time, and impact daily activities. Severe asthma symptoms usually do not get better with use of short-term treatments. Approximately 5-10 percent of Americans with asthma have severe asthma.

Effectiveness:

Safety and effectiveness of Tezspire were demonstrated in two clinical trials (NCT02054130 and NCT03347279), where participants with severe asthma received Tezspire 210 mg or placebo subcutaneously once every four weeks for 52 weeks.

Participants receiving Tezspire had significant reductions in the annualized rate of asthma attacks compared to placebo. Additionally, there were fewer asthma attacks requiring emergency room visits and/or hospitalization among participants treated with Tezspire compared to placebo. The benefits of Tezspire seen in participants weren’t limited by specific severe asthma type.

Safety Information:

Tezspire should not be used to treat short-term asthma symptoms or short-term asthma attacks. Patients should not discontinue systemic or inhaled corticosteroid treatments abruptly after starting therapy with Tezspire. Reductions in corticosteroid treatment dose, if appropriate, should be gradual and performed under the direct supervision of a health care professional. Patients with pre-existing helminth infections should be treated for the helminth infection before starting therapy with Tezspire for asthma. Patients with a serious hypersensitivity reaction to Tezspire must not take Tezspire. Live vaccines should be avoided in patients receiving Tezspire.

Designations:

Tezspire received breakthrough designation for the treatment of severe asthma.

CLICK HERE: See the prescribing information for additional information 

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Has Biosimilar Fever Arrived?

The answer to whether biosimilar fever has arrived is ….. ‘almost’….. if one believes the comments from CIGNA in the article below. 

CIGNA is bullish on biosimilars and is willing to put its money behind its prognostications of realizing billions of dollars in savings. 

  • “Under the new Shared Savings Program, members will be offered a one-time $500 debit card for healthcare services or medications if they make the decision to switch to a biosimilar.”

To get the bonus, members on Remicade therapy would need to switch to either Avsola or Inflectra, biosims approved in April 2016 and December 2019 respectively. (Of note, two other approved infliximab biosimilars, Renflexis and Ixifi, were not included in the bonus program.)

CIGNA goes on to say that they are looking closely at promoting biosimilar use of other approved and commercially available biosimilars. The potential for huge savings ramps up significantly in 2023 when already approved biosims for Humira and Enbrel are finally released for marketing.

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Cigna to offer $500 incentive for members who switch to a biosimilar drug

Cigna is launching a new program that aims to encourage eligible members to switch to biosimilar drugs. 

Under the new Shared Savings Program, members will be offered a one-time $500 debit card for healthcare services or medications if they………

CLICK HERE to read the full article

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