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Thursday, June 23, 2016

275 Arrested in Crackdown on Medicare and Medicaid Fraud




More than $800 million was falsely billed

Federal officials announced on Wednesday that 275 people around the country had been arrested in a crackdown on Medicare and Medicaid fraud.

More than $800 million was falsely billed by those arrested for medically unnecessary services—or services that were never provided at all, NBC News reports. Those who were rounded up include 60 medical professionals, 30 of whom are doctors.

“These takedowns protect and deter fraud in programs that millions of people rely on,” one federal official said.

Officials from the Departments of Justice and Health and Human Services are expected to offer more details on the crackdown Wednesday.

Source: [NBC News]

CDC panel recommends against using FluMist vaccine



(CNN)-Flu vaccines are about to get more painful. A Centers for Disease Control and Prevention advisory committee recommended on Wednesday that FluMist, the nasal spray influenza vaccine, should not be used during the upcoming flu season.

"To everyone's surprise and increasing consternation, this vaccine has performed quite poorly compared to the injectable vaccine," said Dr. William Schaffner, an infectious disease specialist.

An alternative to the standard flu shot, FluMist had been approved for people between the ages of 2 and 49 years old by the Food and Drug Administration.

The CDC committee, which includes 15 immunization experts, reviewed data from previous flu seasons, including the most recent season, comparing FluMist with the standard flu shot.

The decision must now be approved by the CDC director, Dr. Tom Frieden before taking effect.

The FDA first approved the nasal spray in 2003. MedImmune, a subsidiary of London-based AstraZeneca PLC, produces FluMist, a live attenuated influenza vaccine. By contrast, the flu shot is an inactivated influenza vaccine.

Though the viruses in FluMist are live, they have been weakened (attenuated, in medical terms) and work by stimulating the immune system. There are two versions of FluMist: one a trivalent vaccine, which protects against three strains of flu virus, and the other a quadrivalent, protecting against four strains.

"We agree with [the Advisory Committee on Immunization Practices'] decision today to recommend health care providers and parents use only the inactivated vaccine," Dr. Benard Dreyer, president of the American Academy of Pediatrics, said in a statement. The Pediatric Infectious Disease Society also stated its support during the hearing.

Yet, prior to its recent poor performance, all evidence showed the spray worked better than the flu shot in children under the age of 8. And, during those sunny days, the CDC committee expressed a preference for the mist over the shot.

"That lasted exactly a year," explained Schaffner. Still, the nasal spray had become a favorite among pediatricians.

She said one drawback of the nasal spray is it may cause a runny nose for a day or two. "Half the time, these kids have a runny nose anyway, especially young children," she said.

An estimated one-third of all flu vaccinations administered to children are nasal spray, according to the CDC. Pediatricians are likely to be most impacted by Wednesday's recommendation, especially those who have already placed orders for vaccines in advance of the upcoming flu season. "CDC will be working with manufacturers throughout the summer to ensure there is enough vaccine supply to meet the demand," the agency said in a statement.

The FDA had been working with MedImmune to determine why the spray had begun to work so poorly.

Each February, an FDA committee makes the final decision about which virus strains will go into vaccines sold in America for the coming season. Its decision is based on information from more than 100 countries, where influenza-monitoring centers conduct surveillance of circulating viruses. The committee considers which viruses are making people sick, where those viruses are spreading and how well the previous season's vaccine protects against them.

After the committee selects the strains to be used for the vaccine, manufacturers genetically adapt the strains to optimize the vaccine for the production process. Typically, trivalent formulations include two A strains and one B strain, while the quadrivalent formulations add a second B strain.

"So the question is whether there's something in the process that alters the strain," Schaffner said. Because the underlying science is so complex, there are no easy answer, he said.

Dr. Haihao Sun of the FDA's Office of Pediatric Therapeutics said the inconsistent effectiveness results were a concern to the agency.

During the hearing, Dr. Chris Ambrose of MedImmune shared results from the company's 2015-16 influenza vaccine effectiveness study, which found the FluMist quadrivalent vaccine to be 46% effective, compared with the flu shot's 65% effectiveness. However, Dr. Brendan Flannery of the CDC presented data indicating that FluMist had zero effectiveness against one strain of flu.

Acknowledging that FluMist offered advantages in the past, especially for children, Sun said the FDA would continue to work with MedImmune. "At this point, we're not ready to take a requirement for changing prescribing information," he said.

Wednesday's recommendation is an interim decision that could be reversed when the panel reconsiders it next year with additional data.

Source: edition.cnn.com

Biotech stocks surge as Medicare report relieves worries




The iShares Nasdaq Biotechnology ETF (IBB) popped more than 2 percent on Wednesday, after a U.S. report on Medicare spending showed the government insurer's growth rate hasn't exceeded a target that could trigger cost cuts.

The ETF ended the day modestly higher.

The reprieve relates to a provision in the Affordable Care Act focused on Medicare spending. If spending growth by the government insurer surpasses a certain threshold, a group called the Independent Payment Advisory Board (IPAB) is tasked with recommending cost reductions. Investors feared this could be triggered for 2016, leading to lower spending on drugs.

"Medicare spending didn't trigger initiation of the Independent Payment Advisory Board to slash costs, a relief for the beleaguered drug industry whose shares have slumped since the start of the year" Art Hogan, of Wunderlich Securities said in an email to CNBC.

Proposals from IPAB could affect biotechnology companies, hospitals and insurers, with some restrictions. "This is probably one of maybe five or six things health care investors were concerned about. ... My sense is a fairly low probability IPAB gets enacted and is a cost-cutting device," said Mike Bailey, director of research and chair at FBB Capital Partners.

"In my mind there are other concerns investors should focus on first," he said, referring to potential cost cuts by pharmacy management and insurance companies.

After the Medicare news, the iShares Nasdaq Biotechnology ETF (IBB) reversed earlier losses, to hold more than 1 percent higher. Celgene, Regeneron, Gilead were among the biggest positive influences on biotech index on Wednesday. The IBB fell more than 2 percent Tuesday amid concerns of a trigger to creating IPAB.

Analysts at Jefferies say IPAB is still a concern for the sector, and that much more will be needed to maintain the rally. "It will, though, be important to keep IPAB on the radar for 2017, and with reimbursement/election remaining overhangs for the group, we believe increased M&A activity, positive major clinical data, and/or substantial revenue beats would be needed to fuel a more sustainable rally."

Concerns over pricing pressure have contributed to declines for biotech stocks, with the IBB still down about 24 percent this year.

Source: www.cnbc.com

Opko Health shares climb amid FDA approval for hormone treatment




Shares of Opko Health spiked more than 5 percent Tuesday after receiving approval from the U.S. Food and Drug Administration for the drug Rayaldee.

The drug is a treatment option for people with secondary hyperparathyroidism, which causes the release of too much parathyroid hormone in the blood, and is associated with vitamin deficiency in adults with stage three or four chronic kidney disease.

About 9 million people in the U.S. deal with secondary hyperparathyroidism, according to the report. Chronic kidney failure is the most common cause for the disease.

The FDA's approval of Rayaldee is an important milestone for Opko, Dr. Phillip Frost, CEO and chairman of Opko, said in a release. He added it "is one of OPKO's many pharmaceutical products being developed for significant medical problems, which will benefit from new treatment options."

Rayaldee is the first drug of its kind to approved by the FDA, Frost said. The treatment failed to win approval in March after the FDA found deficiencies at one of the company's third-party manufacturers.

The company expects to make the drug available in the second half of this year.

Opko's stock has fallen slightly this year, down more than 3 percent.

Source: www.cnbc.com

Emergent BioSolutions clears hurdle for anthrax vaccine facility




Emergent BioSolutions said Tuesday that the U.S. Food and Drug Administration has completed its pre-approval inspection of Emergent's large-scale facility for making BioThrax, a vaccine for pre-exposure protection against anthrax.

"Emergent is pleased to have reached this critical milestone in our BioThrax comparability program," Adam Havey, executive vice president and president of biodefense division at Emergent, said in the press release.

The company said it looks forward to "timely completing" the process of securing its FDA license for the facility, which is in Lansing, Michigan. A decision is expected by August, the company said.

BioThrax is the only approved anthrax vaccine in the U.S. The company has been supplying it to the Centers for Disease Control and Prevention as part of an effort to develop a U.S. stockpile in the event of a terrorist attack.

Anthrax is an infection caused by a spore-forming bacterium. It mainly effects animals, but humans can contract the infection through contact with infected animals or inhaling spores. Inhaled anthrax can be hard to treat and can be fatal.

Emergent's stock has dropped slightly this year, falling more than 1 percent. The company's shares were mostly unchanged, but were moving back and forth between positive and negative territory.

Source: www.cnbc.com