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Article

May 6, 2016

Trending News Today: Valeant to Reconsider Drug Pricing

Author(s):

Laurie Toich, Assistant Editor

Top news of the day from across the health care landscape.

Raising the Medicare eligibility age to 67 could save the federal government money, but overall spending on health care will increase, Kaiser Health News reports. Currently, Medicare enrollees see a reduced rate of about 32.4% for services that would normally cost more. These reductions can likely be attributed to the large market share that Medicare has and therefore can provide more discounts.

Under the leadership of new CEO Joseph Papa, Valeant has created a new committee to determine the pricing of drugs. According to The Wall Street Journal, this committee will be led by the new CEO, as well as doctors, scientists, and other executives. They will now review drug prices and consider the potential impact on patients, doctors, and health care partners.

Merck & Co reported an 18% increase its first-quarter income, beating their projections. Their first-quarter earnings jumped from $953 million, or 33 cents per share, in 2015’s first-quarter to $1.13 billion, or 40 cents per share. Reduced spending on marketing, administration, and research was offset by lower medicine sales outside the US, The New York Times reported.

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