Teva Pharmaceutical Industries Ltd. has agreed to pay $450 million to resolve allegations it used charities that help cover Medicare patients' out-of-pocket drug costs as a means to pay kickbacks to boost sales of its multiple sclerosis drug Copaxone and conspired to fix prices for generic drugs. The two settlements announced by DOJ on Thursday included one for $425 million resolving a lawsuit filed in federal court in Boston in 2020 as part of an industry-wide probe of drugmakers' financial support of patient assistance charities.
Hospitals in the region are keeping a careful eye on their IV fluid supplies, and are using less of the precious liquid as a way to cope with supply shortages in the wake of Hurricane Helene. The powerful storm damaged a factory in North Carolina that produces more than half the U.S. supply of intravenous fluids, or IV fluids. The factory's shutdown has led to a national shortage of IV fluids, and healthcare workers in Philadelphia and the surrounding region are doing what they can to conserve supplies.
CVS Health is expected to cut more than 630 employees who report to the company's headquarters in Woonsocket, according to a letter the company sent to state officials on Monday. Of the 632 terminations, only 153 work at the Woonsocket headquarters or surrounding facilities. The remaining 479 affected employees are "outstationed," which means they work remotely and report to leaders at the Woonsocket headquarters, according to the company's Worker Adjustment and Retraining Notification notice. Laid off positions include analysts, brokers, software engineers, directors, associates in technology and human resources, and others, according to a breakdown of cut jobs provided to the state by CVS.
Texas Attorney General Ken Paxton has filed a lawsuit against several major insulin makers and PBMs, alleging a conspiracy to inflate insulin prices. The lawsuit targets pharmaceutical companies such as Eli Lilly And Co. and PBMs, including Cigna Corp's Express Scripts and CVS Health Inc's CVS Pharmacy, accusing them of engaging in an unlawful scheme to raise insulin prices. According to the lawsuit, insulin manufacturers artificially raised the prices of their drugs while paying PBMs a significant, undisclosed portion in return for preferred placement in PBM offerings. The PBMs allegedly rewarded the manufacturers with the highest list prices by giving their products preferred status while excluding more affordable alternatives.
The already fragile medical supply chain is facing more stress this week, after Hurricane Helene ravaged a huge Baxter International plant in North Carolina that makes IV fluids for many U.S. hospitals. While the damage hasn't been totaled up, and the company says it's lining up backup plants and making other contingencies, the closure of the flooded facility threatens to upend such basics as intravenous dialysis care and complicate the federal disaster response.
CVS Health Corp.'s stock rose 1.7% Monday after a report surfaced of a meeting between the healthcare company and its major hedge-fund investor, Glenview Capital Management. CVS also confirmed plans to reduce its workforce by 2,900 people as part of a previously announced cost-cutting plan. CVS's stock rose $1.65 to $63.03 in early trading. Glenview CEO Larry Robbins was to meet with CVS Chief Executive Karen Lynch to present proposals to energize the company but not break it up. The gathering between CVS and Glenview comes after CVS's stock has fallen more than 22% this year as of Friday's close, while the S&P 500 has risen about 20%.