Kansas court pre­lim­i­nar­i­ly ap­proves Vi­a­tris' $264M EpiPen set­tle­ment

A fed­er­al court has signed off on a set­tle­ment that will see Vi­a­tris pay $264 mil­lion to re­solve claims that it con­spired with Pfiz­er to “mo­nop­o­lize the mar­ket” for life-sav­ing EpiPens.

Kansas Judge Daniel Crab­tree pre­lim­i­nar­i­ly agreed to the set­tle­ment on Fri­day, paving the way for a fi­nal ap­proval that won’t come un­til at least the sec­ond half of the year. A fair­ness hear­ing will take place on Ju­ly 6, ac­cord­ing to court doc­u­ments.

The case dates back to 2017, when plain­tiffs filed a com­plaint al­leg­ing Vi­a­tris — cre­at­ed out of the merg­er of Up­john and My­lan — “de­vised an il­le­gal scheme” to pre­vent EpiPen com­peti­tors from com­ing to mar­ket. The com­pa­ny has been un­der heavy fire since 2016, when the price of two EpiPens surged to $608, up from $100 in 2007.

“As a re­sult, mil­lions of Amer­i­cans re­ly­ing on this life-sav­ing de­vice have paid ex­or­bi­tant prices for EpiPens that are in no way teth­ered to or con­strained by a com­pet­i­tive mar­ket,” an amend­ed com­plaint states.

The com­plaint ac­cus­es both My­lan and Pfiz­er, which man­u­fac­tured the EpiPen, of en­gag­ing in an­ti-com­pet­i­tive con­duct that cre­at­ed a mo­nop­oly.

The “scheme” con­sist­ed of mul­ti­ple parts, plain­tiffs said, al­leg­ing that the de­fen­dants: mis­clas­si­fied EpiPen un­der Med­ic­aid’s Med­ical Drug Re­bate Pro­gram; of­fered ag­gres­sive re­bates and in­cen­tives to phar­ma­cy ben­e­fit man­agers con­di­tioned on ex­clud­ing com­peti­tors from the mar­ket; of­fered free EpiPens to schools through its Ac­cess to Schools pro­gram, on the ex­clu­sion of com­peti­tor prod­ucts; cre­at­ed a patent thick­et; and as­sert­ed that EpiPens should be sold sole­ly in two-packs, dri­ving up cost.

These ac­tions “en­dan­gered the lives of mil­lions of Amer­i­cans,” the amend­ed com­plaint al­leges.

“It is al­so time to send a mes­sage that the law will not tol­er­ate the fraud­u­lent and an­ti­com­pet­i­tive ac­tions of Amer­i­ca’s phar­ma­ceu­ti­cal gi­ants,” the doc­u­ment states.

Heather Bresch

Then-My­lan CEO Heather Bresch, daugh­ter of De­mo­c­ra­t­ic Sen­a­tor Joe Manchin, left the com­pa­ny af­ter the merg­er in 2020. But she vig­or­ous­ly de­fend­ed the price in­crease be­fore the House Over­sight and Gov­ern­ment Re­form Com­mit­tee, say­ing, “Price and ac­cess ex­ist in a bal­ance, and we be­lieve we have struck that bal­ance.”

Vi­a­tris has de­nied any wrong­do­ing, but agreed to pay $264 mil­lion to re­solve the cas­es pend­ing in the US Dis­trict Court for the Dis­trict of Kansas.

“The Board of Di­rec­tors be­lieves that this set­tle­ment is in the best in­ter­ests of the Com­pa­ny and its stake­hold­ers. The res­o­lu­tion of these in­di­rect pur­chas­er cas­es will al­low the Com­pa­ny to move for­ward and con­tin­ue fo­cus­ing on its strate­gic pri­or­i­ties,” it said last month.

Crab­tree dis­missed much of the case against My­lan last June, leav­ing on­ly a claim con­cern­ing a 2012 patent lit­i­ga­tion set­tle­ment with gener­ic drug­mak­er Te­va. Pfiz­er al­so struck a $345 mil­lion set­tle­ment last year.

Pi­o­neer­ing Click Chem­istry in Hu­mans

Reimagining cancer treatments

Cancer is a leading cause of death worldwide, accounting for nearly 10 million deaths in 2020, which is nearly one in six deaths. Recently, we have seen incredible advances in novel cancer therapies such as immune checkpoint inhibitors, cell therapies, and antibody-drug conjugates that have revamped cancer care and improved survival rates for patients.

Despite this significant progress in therapeutic targeting, why are we still seeing such a high mortality rate? The reason is that promising therapies are often limited by their therapeutic index, which is a measure of the effective dose of a drug, relative to its safety. If we could broaden the therapeutic indices of currently available medicines, it would revolutionize cancer treatments. We are still on the quest to find the ultimate cancer medicine – highly effective in several cancer types, safe, and precisely targeted to the tumor site.

Justin Klee (L) and Joshua Cohen, Amylyx co-CEOs (Cody O'Loughlin/The New York Times; courtesy Amylyx)

Ad­vo­cates, ex­perts cry foul over Amy­lyx's new ALS drug, cit­ing is­sues with price, PhI­II com­mit­ment

Not 24 hours after earning the first ALS drug approval in five years, Amylyx Pharmaceuticals’ Relyvrio is already drawing scrutiny. And it’s coming from multiple fronts.

In an investor call Friday morning, Amylyx revealed that it would charge about $158,000 per year, a price point that immediately drew backlash from ALS advocates and some outside observers. The cost reveal had been highly anticipated in the immediate hours after Thursday evening’s approval, though Amylyx only teased Relyvrio would cost less than previously approved drugs.

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Land­mark Amy­lyx OK spurs de­bate; Some... pos­i­tive? Alzheimer's da­ta; Can­cer tri­al bot­tle­neck; Sanofi's CRISPR bet; and more

Welcome back to Endpoints Weekly, your review of the week’s top biopharma headlines. Want this in your inbox every Saturday morning? Current Endpoints readers can visit their reader profile to add Endpoints Weekly. New to Endpoints? Sign up here.

After brief stops in Paris and Boston, John Carroll and the Endpoints crew are staying on the road in October with their return for a live/streaming EUBIO22 in London. The hybrid event fireside chats and panels on mRNA, oncology and the crazy public market. We hope you can join him there.

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Joshua Cohen (L) and Justin Klee, Amylyx co-CEOs

Up­dat­ed: Af­ter long and wind­ing road, FDA ap­proves Amy­lyx's ALS drug in vic­to­ry for pa­tients and ad­vo­ca­cy groups

For just the third time in its 116-year history, the FDA has approved a new treatment for Lou Gehrig’s disease, or ALS.

US regulators gave the thumbs-up to the drug, known as Relyvrio, in a massive win for patients and their families. The approval, given to Boston-area biotech Amylyx Pharmaceuticals, comes after two years of long and contentious debates over the drug’s effectiveness between advocacy groups and FDA scientists, following the readout of a mid-stage clinical trial in September 2020.

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#AAO22: J&J’s first look at com­mon eye dis­ease port­fo­lio pads the case for PhII of gene ther­a­py

CHICAGO — While the later-stage drug developers in the geographic atrophy field are near the finish line, Johnson & Johnson’s Janssen is taking a more deliberate route, with a treatment that it hopes to be a one-time fix.

The Big Pharma will take its Hemera Biosciences-acquired gene therapy into a Phase II study later this year in patients with GA, a common form of age-related macular degeneration that impacts about five million people worldwide. To get there, Janssen touted early-stage safety data at the American Academy of Ophthalmology annual conference Saturday morning, half a day after competitors Apellis and Iveric Bio revealed their own more-detailed Phase III analyses.

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Nooman Haque, head of life sciences and healthcare at Silicon Valley Bank, and John Carroll

I’m head­ed to Lon­don soon for #EU­BIO22. Care to join me?

It was great getting back to a live ESMO conference/webinar in Paris followed by a live pop-up event for the Endpoints 11 in Boston. We’re staying on the road in October with our return for a live/streaming EUBIO22 in London.

Silicon Valley Bank’s Nooman Haque and I are once again jumping back into the thick of it with a slate of virtual and live events on October 12. I’ll get the ball rolling with a virtual fireside chat with Novo Nordisk R&D chief Marcus Schindler, covering their pipeline plans and BD work.

Gilead names 'k­ing­pin­s' in coun­ter­feit HIV med law­suit

Gilead is mounting its counterfeit drug lawsuit, naming two “kingpins” and a complex network of conspirators who allegedly sold imitation bottles of its HIV meds, some of which ended up in US pharmacies.

The pharma giant on Wednesday provided an update on what it called a “large-scale, sophisticated counterfeiting conspiracy,” accusing two new defendants of “leading and orchestrating” a scheme to sell hundreds of millions of dollars in illegitimate drugs posing as meds such as Biktarvy and Descovy.

Some­one old, some­one new: Mod­er­na pro­motes CTO, raids No­var­tis for re­place­ment amid pipeline push

Moderna CEO Stéphane Bancel made clear on the last quarterly call that “now is not the time to slow down.” On Thursday, he made a bit more room in the cockpit.

The company unveiled a new executive role on Thursday, promoting former chief technical operations and quality officer Juan Andres to president of strategic partnerships and enterprise expansion, and poaching a former Novartis exec to take his place.

Tar­sus looks to raise aware­ness of eye­lid mite dis­ease in cam­paign aimed at eye­care spe­cial­ists

Eyelid mite disease may be “gross” but it’s also fairly common, affecting about 25 million people in the US.

Called demodex blepharitis, it’s a well-known condition among eyecare professionals, but they often don’t always realize how common it is. Tarsus Pharmaceuticals wants to change that with a new awareness campaign called “Look at the Lids.”

The campaign and website debut Thursday — just three weeks after Tarsus filed for FDA approval for a drug that treats the disease.

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