Price controls and measles surges

We recap a busy week, with activity on drug price controls and a look at alarming surges in measles around the world. (484 words, 2 minutes, 25 seconds)

Drug price controls are coming – here’s what’s happening

The federal government sent initial “offers” yesterday to the makers of the first 10 drugs selected for Inflation Reduction Act (IRA) price controls—but efforts to fix some of the worst aspects of the program are gaining momentum.

What’s happening: Drug companies have until early March to respond to yesterday’s “offers.” The so-called “negotiations” are meant to end in August, with prices announced in September, explains The New York Times.

The drugs facing price controls: Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara, and several versions of the insulin medications Fiasp and NovoLog.

The penalty for rejecting the government’s price:a tax that increases from 186% to nearly 20 times sales revenue.

Why it matters: Developing new drugs takes 10.5 years on average, and fewer than 10% of drugs in Phase I development reach the market, a BIO report finds. Studies show investors will forgo funding new drugs if price controls threaten returns on development investments of $1 billion or more.

Some better news: A bipartisan bill introduced in the House Wednesday would extend the price controls exemption for small molecule drugs to 13 years, and there’s bipartisan, bicameral support for the ORPHAN Cures Act, which would fix the incentive structure for orphan drugs to encourage follow-on investment.

More Reading in Health Affairs:How the IRA Could Delay Pharmaceutical Launches, Reduce Indications, and Chill Evidence Generation

Measles is surging due to lag in vaccination rates

Vaccination had all but eliminated measles in many places a few years ago—but dropping vaccination rates have allowed the disease to make a startling comeback. 

The numbers: From January-October 2023, Europe saw 30,000 measles cases—more than 30 times the 941 cases in 2022. Between October and January 2024, U.K. officials announced more than 300 cases in England, where measles was eliminated in 2017.

Danger in the U.S.: Although measle rates are lower in the U.S., where the disease was eliminated for 19 years, CBS News found 8,500 U.S. schools where fewer than 95% of kindergarteners had received a measles vaccine.

Why it matters: A community needs a vaccination rate of 95% for herd immunity that prevents the spread of measles, WHO says. Below that number, children are at risk of catching this highly contagious and potentially deadly disease.

The COVID factor: The pandemic interrupted regular vaccination schedules worldwide. While other vaccine rates improved post-pandemic, measles shots lagged. The proliferation of vaccine misinformation during the pandemic made more parents decide against vaccinating their children.

The bottom line: The measles vaccine works. With sufficient vaccination rates, measles could be eliminated.

President Biden’s Friday: Witnessing return of the remains of three U.S. soldiers killed in Jordan recently and meeting with their families at Dover Air Force Base, Delaware, per Reuters.

What’s Happening on Capitol Hill: Enjoy the weekend after a busy week.