Pharmaceutical News

The Rise Of The Pharmaceutical Un-Sales Force

In a variation on the old saying “if you can’t beat ‘em, join ‘em,” a number of states have initiated programs where purportedly independent clinicians, pharmacists and other medical personnel pay visits to physicians as a way of countering the information delivered to health care providers by drug company sales people (who are known as “detailers”). States such as Pennsylvania and South Carolina are funding this “academic detailing” as a tool to reduce those governments’ prescription drug-related health care expenses. Counter-detailers reportedly inform doctors that older drugs or less expensive generics can be as or more effective in treating some conditions than newer, patented products. Thanks to the 2009 federal stimulus bill and the ObamaCare law, the federal government is now looking to get into the academic detailing business.

We’re all for more information in the marketplace, and especially more health care information. But we don’t particularly appreciate it when government puts its massive thumb on the information scales in the way we are seeing with academic detailing. For instance, through the state law being challenged in the Supreme Court Sorrell v. IMS Health case, Vermont is encumbering drug detailing by prohiting drug companies from using “prescriber identifiable” prescription data for detailing purposes. The Vermont law says nothing, however, about the state’s own counter-detailing program. So Vermont’s academic detailers are free to use such data, while drug companies cannot. That is one, among many reasons, why the Supreme Court should strike down Vermont’s law as unconstitutional.

Another way government places its thumb on the scales regarding drug company detailing vs. counter-detailing is described in a just-released WLF Legal Backgrounder by Dr. Joshua D. Lenchus, Assistant Professor of Clinical Medicine at the University of Miami Miller School of Medicine. As Dr. Lenchus relates, federal and state governments impose a growing network of rules and regulations on the promotional activities of pharmaceutical companies in the interests of ensuring that the information doctors receive is correct and credible, and that company reps don’t unduly or unethically influence doctors’ decisions. Drug company and medical trade associations also demand that their members conform to voluntary codes of conduct.

Government-sponsored academic detailers, on the other hand, do not currently have to conform to any such regulatory oversight standards. Their information providing process is entirely opaque, Dr. Lenchus notes, and no clear rules exist to govern state counter-detailers’ practice of providing lunches or continuing medical education credits for their doctor targets. The paper lists a number of unanswered questions along these lines, arguing that, “Policy-makers must address these issues to ensure that medical professionals, and in turn their patients, are confident in the accuracy and reliability of the academic detailing initiative and the information it disseminates. ”

WLF is also filing comments today with the Department of Health and Human Services which requested public input on Dissemination of Comparative Effectiveness Research to Patients and Providers to Increase Adoption advancing its position that if a regulatory regime is to exist for company dissemination of information, government-sponsored detailers should face similar oversight.

In sum, if government is taking the stance of “if you can’t beat ‘em, join ‘em,” then we must urge that (pardon our reliance on another worn-out saying) “what’s good for the goose is good for the gander.”

Wockhardt Gets FDA Approval for Marketing Generic Aricept

Mumbai based pharmaceutical company, Wockhardt has revealed that it has got a tentative approval from the US Food and Drug Administration to market its generic copy of Aricept tablets used in treatment of Alzheimer’s and dementia.

Wockhardt said that it expects to launch the Donepezil HCl tablets by May 8 this year and added that the approval has been given for 5 mg and 10 mg versions of the tablet.

The company is confident of getting a substantial slice of the $2.5 billion market that the drug commands in the US.

“We are continuing to get a steady stream of FDA approval and are able to launch them on the date the generic market opportunity opens”, the company chairman, Mr Habil Khorakiwala said.

Nano Terra licenses nanotech, ex-Surface Logix platform

Nano Terra Inc., a Brighton nanotechnology development firm, is giving an exclusive worldwide license to three disease-oriented product candidates and rights to its Pharmacomer drug discovery platform to New York City biotechnology firm Kadmon Pharmaceuticals LLC. The licensing agreement has spawned the creation of NT Life Sciences, a new joint venture co-owned by both companies and serving as the recipient of any associated licensing or royalty fees stemming from the deal.

Myer Berlow, CEO of Nano Terra, said in a news release that the licensing deal helps Nano Terra expand its nanotechnology and chemistry focus into life sciences.

No financial terms of the licensing agreement were disclosed.

Nano Terra’s three products to be licensed to Kadmon are SLx-2119, SLx-4090 and SLx-2101 – all molecular-level pharmaceutical discovery compounds. Its drug discovery platform, Pharmacomer, was developed by Surface Logix Inc., a former Brighton drug developer founded by Harvard scientist Professor George Whitesides and acquired by Nano Terra earlier this month.

Nano Terra holds licenses to more than 50 patents held by Whitesides.

In December, the company brought in $17.2 million of a planned $23.6 million venture funding round, per a regulatory filing.

Biogen Idec Launches a Preemptive Strike on Teva Pharmaceuticals

Teva Pharmaceuticals (TEVA: Charts, News, Offers), based in Petah Tikva, Israel, manufacturers generic and proprietary pharmaceuticals as well as active pharmaceutical ingredients. In 2010, total sales increased to $16.1 billion, up from $13.9 billion in 2009 and $11.08 billion in 2008. The company has expanded aggressively over the past five years, acquiring its American rival Ivax Corporation in 2006, generic contraceptive manufacturer Barr in 2007 and German company Ratiopharm in 2010. The company now has offices and factories in Israel, North America, Europe and Latin America, with nearly 40,000 employees worldwide. While the company has been helped substantially by negativity regarding the limiting legislation and patent expirations large pharmaceutical manufacturers are currently facing in America, other companies in the generics market – such as Mylan (MYL: Charts, News, Offers), Novartis’ (NVS: Charts, News, Offers) Sandoz, Dr. Reddy’s Laboratories (RDY: Charts, News, Offers) and Biogen (BIIB: Charts, News, Offers) – have begun to chip away at Teva’s once dominant market share.

Shares of Teva, the world’s largest manufacturer of generic drugs, plunged to a two-year low on news that major rival Biogen Idec had reported positive data from its Phase III clinical trials of its oral multiple sclerosis drug, BG-12, a rival to Teva’s Laquinimod. Teva investors had been hoping that Laquinimod would emerge as the dominant drug in the field. Meanwhile, shares of Biogen jumped 26.5% as the company announced that BG-12 reduced the proportion of relapsed patients by 49%, compared to the 23% reduction reported by Laquinimod, which was originally intended to reduce relapses by 25-30%. A 25-30% reduction had been an industry standard set by older injected MS drugs from Bayer, Merck and Biogen Idec. To make matters worse for Teva, Novartis’ Gilenya, which is already on the market, is fortifying its position further against Laquinimod, which is forecast to arrive on the market in 2012. Another concern is Teva’s cannibalization of its own high revenue products. With a market focus shifting towards orally administered multiple sclerosis drugs, Teva’s profit engine Copaxone, a daily injected multiple sclerosis medication which brought in a third of the company’s 2010 profits at $3 billion, will become marginalized by its own Laquinimod as well as its rival’s oral MS drugs. Laquinimod can be seen as a replacement for Copaxone, and not a concurrent revenue generator. Of course, these two drugs will not make or break Teva – the company has a huge stable of profitable drugs which make up the other two-thirds of its profits. The most notable of these is Azilect, a Parkinson’s disease treatment which currently has only $80 million in sales, but has grown at triple the rate of Copaxone, at 28% vs. 9% year-over-year, which may also help fill the void left by retiring Copaxone.

There may be other catalysts and obstacles on the horizon for Teva. As large pharmaceuticals lose ground due to patent expirations and heavy-handed legislation, all-generic drug companies such Teva should reap the benefits. However, large pharmaceutical companies have begun to adapt by acquiring generic subsidiaries to produce generic drugs in-house to hedge the company’s finances in times of uncertain legislation. Of these, only Novartis’ generic subsidiary Sandoz is a threat to Teva; however, Mylan’s acquisition of Merck’s generic business in Europe and Indian generic producer Matrix has boosted its international sales from $5 to $75 billion, emerging as a new competitor to Teva and Novartis. In addition, Teva must wait for valued patents to expire before producing its own – and in certain cases, can tackle other companies to gain a 180-day exclusivity over its competitors if it finds that certain parts of the drug are not protected by the original patent. In the United States, Medicare has made a target out of Teva, which the government has accused on multiple occasions of pricing fraud, claiming that the company charges a higher than expected price for its generic drugs. Patent litigation from drug manufacturers and other generics could also slow Teva down and take a bite out of its bottom line.

FDA approves Taro’s Canadian pharmaceutical facility

Taro Pharmaceutical Industries Ltd. (Pink Sheets: TAROF) can resume regular production at its Canadian manufacturing facility, after the US Food and Drug Administration (FDA) approved the facility, following a re inspection of the site in February 2011. The facility is located in the Toronto suburb of Brampton.

Taro said that the issues raised in the FDA warning letter of February 5, 2009 are considered to be resolved.

The FDA has been tightening its enforcement in recent years, sending warning letters to many pharmaceutical companies about faults found in their manufacturing facilities. The inspection at the Brampton facility related to flaws in the production of an anti-itch and acne cream Fluocinonide and for ringworm cream Cicloopirox Olamine.

Taro interim CEO James Kedrowski said, “We have worked diligently at the Brampton facility to resolve the issues noted in the last inspection and are pleased that our efforts have brought the facility back into good standing with the Agency. We are dedicated to developing and manufacturing quality products for our customers while meeting and exceeding all Good Manufacturing Practices (GMP) standards set by the FDA and Health Canada.”
Taro’s share price closed at $14.40 yesterday, giving a market cap of $566 million.

Cumbria shortlisted for new pharmaceutical factory

Cumbria is on the shortlist for a new pharmaceutical factory that would produce groundbreaking drugs to treat illnesses.

GlaxoSmithKline (GSK) has included Ulverston on a list of potential locations for a new ‘biopharmaceutical’ plant.

Other sites including Irvine and Montrose, in Scotland, and Barnard Castle, County Durham, are also under consideration.

Glaxo is expected to make a decision by the end of the year, with construction and commissioning expected to take about five years to complete.

If Ulverston is chosen it would be a massive boost for the site which has suffered several waves of redundancies in recent years.

The firm is currently downsizing from 540 people to between 210 and 240 there as part of a plan set out in 2008.

That plan includes “outsourcing of some lower complexity intermediate manufacturing, re-engineering the site layout to remove old facilities and equipment, and the reduction of site headcount”.

Bosses announced a further 20 compulsory redundancies in February.

The restructure will see the Ulverston site continue to focus on “very specialist sterile manufacture and oral spraying technologies”, Glaxo said.

Bosses say the site has continued to perform “extremely well” throughout the transition.

Protect Pharmaceutical Corporation Appoints Chief Executive Officer and Chief Financial Officer

Protect Pharmaceutical Corporation (OTCBB: PRTT) today announced its Board of Directors has appointed current Chief Operating Officer Ramesha Sesha as its Chief Executive Officer and Chairman of the Board, effective immediately. Mr. Sesha joined Protect as the Chief Operating Officer and Board Member in March 2011, following the Patent Acquisition Agreement with Nectid Inc where he was the Founder and CEO.

Mr. Sesha has over 15 years experience in both the brand and generic pharmaceutical industry. He is an Organic chemist and was the Senior Vice President for Intellectual Property and US FDA Submissions, with Wockhardt Limited in Bedminster, New Jersey. His role included managing the IP portfolio, R & D strategy and was a part of the M & A team. He founded Nectid Inc, a privately held R & D firm and has licensed or sold 19 patents to different pharmaceutical companies in the last 24 months.

Mr. Sesha’s promotion reflects Protect’s strategy to ensure its scientific and corporate visions are aligned together.

The Board of Directors also approved the appointment of Keith Elison to become and serve as the Company’s Chief Financial Officer, to be effective immediately. Mr. Elison has more than eleven years of experience in public company accounting and SEC compliance and reporting issues. His professional experience includes providing accounting and financial reporting assistance for small and medium-sized publicly held companies.

Tarix Pharmaceuticals Enrolls First Patient in Phase 1 Clinical Study of TXA127 in Adult Patients Following Double Cord Blood Stem Cell Transplant

Tarix Pharmaceuticals today announced enrollment of the first patient in a Phase 1 clinical study of TXA127, a pharmaceutical grade formulation of a naturally occurring peptide known to stimulate early hematopoietic precursor cells in the bone marrow. The study will evaluate the safety of TXA127 following double cord blood stem cell transplant (DCBT) in adult patients with hematological cancers. The study will also compare the time to engraftment for patients receiving TXA127 to that of historical controls in order to assess the efficacy of TXA127 in speeding up the engraftment process.

Umbilical cord blood-derived stem cells offer increased flexibility in the degree of human leukocyte antigen (HLA) matching required for transplantation and are a critical source of donor cells for patients for whom a source of immunologically compatible donor cells are not readily available. Following transplantation, the rate at which the infused stem cells are able to repopulate patients’ blood with platelets and other mature blood cells (engraftment) determines the risk of developing serious complications such as infection and bleeding. There are currently no drugs available that speed up the engraftment process.

“Initiation of our Phase 1 clinical program in DCBT marks another significant milestone in the development of TXA127 for enhancing engraftment following stem cell transplantation,” stated Rick Franklin, CEO of Tarix Pharmaceuticals. “This program complements our ongoing placebo-controlled Phase 2 clinical study in adults receiving autologous peripheral blood stem cell transplant. We are excited to advance these programs in order to address the unmet needs of the full spectrum of patients undergoing hematopoietic stem cell transplants.”

About TXA127

TXA127 is unique because it directly stimulates transplanted stem cells to replenish circulating platelets, white blood cells and red blood cells, potentially reducing the time it takes for blood cell counts to return to safe levels following stem cell transplant, which may accelerate the recovery process and reduce some of the health risks associated with stem cell transplant.

TXA127 was granted Orphan Drug designation from the U.S. Food and Drug Administration (FDA) as a treatment to enhance engraftment in patients receiving a stem cell transplant. TXA127 has also received Orphan Drug designation for the treatment of Myelodysplastic Syndrome (MDS).

Bayer Responds to Studies Linking Birth Control Pills to Blood Clots

Following two studies that claim hormones used in newer birth control pills could put women at a greater risk of developing blood clots, Bayer HealthCare Pharmaceuticals, Inc. — who had three drugs put into question — has come out with its response.

In a statement released Thursday after the studies were published, the pharmaceutical company said it “re-affirms that the overall body of available scientific evidence continues to provide support that the risk of developing venous thromboembolism, or blood clots, in women using drospirenone-containing combination oral contraceptives is comparable to other combination birth control pills studied.”

The studies found that women who take drospirenone-containing pills, like Bayer’s Yazmine, Yaz and Ocella, had a two-to-three-fold increased risk of developing clots compared to levonorgestrel-containing pills.

Bayer contended “that the manner in which the authors applied the study methodology reported in these two publications and the databases used provide less reliable conclusions than are available from existing scientific evidence.”

The company also said the findings “do not change the overall assessment about the safety of Bayer’s oral contraceptives.”

Cumberland Pharmaceuticals to Announce First Quarter 2011 Financial Results on May 4, 2011

Cumberland Pharmaceuticals Inc.  announced today that it will release first quarter 2011 financial results after the market closes on Wednesday, May 4, 2011. A conference call and live Internet webcast will be held on Wednesday, May 4, 2011 at 5:00 p.m. Eastern Time to discuss the results.

Cumberland Pharmaceuticals Inc. is a specialty pharmaceutical company focused on the acquisition, development and commercialization of branded prescription products. The Company’s primary target markets include hospital acute care and gastroenterology. Cumberland’s marketed products include Acetadote® (acetylcysteine) Injection for the treatment of acetaminophen poisoning, Caldolor® (ibuprofen) Injection, the first injectable treatment for pain and fever approved in the United States, and Kristalose® (lactulose) for Oral Solution, a prescription laxative. Cumberland is dedicated to providing innovative products that improve quality of care for patients.

Idera delays hepatitis-C drug trials

Idera Pharmaceuticals Inc. has put the brakes on a Phase 2 trial of a treatment for a specific type of hepatitis C because early data showed certain types of cancerous growth in lab rats.

The trial was evaluating IMO-2125 plus ribavirin in treatment-naïve, genotype 1 hepatitis C virus (HCV) patients. Once Cambridge pharmaceutical Idera (Nasdaq: IDRA) evaluated toxicology studies involving rodents and non-human primates, researchers noticed that the rats showed instances of a condition called atypical lymphocytic proliferation.

While the date for a return to the Phase 2 studies wasn’t announced in today’s press release, Idera did say it was planning on having data from the primate toxicology studies in the second half of this year.

Idera CEO and chairman Sudhir Agrawal noted in the release that “IMO-2125 has been evaluated in 96 HCV-infected patients in two Phase 1 studies and no treatment-related serious adverse events or treatment-related discontinuations have been observed.” He also said the company would determine how to proceed with IMO-2125 after all toxicology data is in hand.

Just last week Idera touted good news, reporting that studies show its gene-silencing oligonnucleotides (GSOs) efficiently inhibited gene expression, overcoming issues associated with other gene-silencing technologies, such as stability, specificity and system delivery.

In October of 2010, Idera changed up its board following the retirement of James Wyngaarden. As a result, Agrawal took on the role of chairman of the board of directors and William Reardon was named lead director.

Cumberland Pharmaceuticals acquires drug candidate from Vanderbilt

Cumberland Pharmaceuticals Inc. said Tuesday it has agreed to acquire rights to a molecule named ifetroban that it plans to test as a potential in-hospital treatment for a condition that involves progressive kidney failure.

The purchase adds a potential new product to the Nashville-based specialty pharmaceutical company’s thin drug pipeline.

Cumberland acquired the ifetroban program from Vanderbilt University through its majority-owned subsidiary Cumberland Emerging Technologies.

Specific terms of the acquisition weren’t disclosed.

Cumberland said it has begun clinical development under the brand name Hepatoren (ifetroban).

It is focusing on development for treatment of critically ill hospitalized patients suffering from Hepatorenal Syndrom, a life-threatening condition involving progressive kidney failure.

Ifetroban may improve kidney function in patients by increasing low renal blood flow, Cumberland said, adding today there’s no drug approved for treatment in the United States. A subset of the roughly 450,000 patients nationwide that suffer from medical conditions that make them susceptible to cirrhosis develop Hepatorenal Syndrom every year, executives said.

David Windley, a Jefferies & Co. analyst in Nashville who tracks Cumberland, said that the target patient population is 25,000 to 30,000 with a sales potential of more than $50 million.

“So (it’s) a reasonable size for them, but not a huge product,” Windley said about Ifetroban, which could hit the markets in 2014. “It gives them a clinical candidate in their pipeline.”

The product addition comes as sales of Cumberland’s Acetadote injection for treatment of acetaminophen poisoning has been stable, but its Caldolor (ibuprofen) injection, an injectable treatment for pain and fever, is still struggling, Windley said.

Cumberland Emerging Technologies, which has a life sciences incubator in Nashville, is a joint initiative between drugmaker Cumberland, Vanderbilt University and the Tennessee Technology Development Corp.

Pharmaceutical sales top $300 billion in 2010

Spending on prescription medicines rose 2.3 percent last year in the U.S. to $307 billion, according to a new study.

The study by IMS Institute for Healthcare Informatics noted the increase was lower than the 5.1 percent growth rate in 2009. And the volume of prescription medicines consumed overall rose at historically low levels — only 0.5 percent — in 2010.

“Last year, we saw the convergence of key dynamics leading to diminished growth in drug spending, which included the greater use of generics, loss of patent protection for major branded products, slower demand and less spending on new therapies,” said Michael Kleinrock, director of research development at IMS Institute for Healthcare Informatics. “Moreover, fewer patients visited physician offices and initiated new chronic therapy treatments last year, likely the result of the slower economy.”

Baxter to buy heart drug firm

Baxter International Inc. said Monday it will acquire privately-held Prism Pharmaceuticals, Inc., a specialty pharmaceutical company based in King of Prussia, Pa.

Terms of the agreement include a total consideration of up to $338 million, consisting of an upfront cash payment of $170 million at closing and up to $168 million in future sales-based milestone payments. The transaction is expected to close in the second quarter of 2011, subject to customary closing conditions.

Prism has developed and received U.S. Food and Drug Administration approval for multiple presentations of Nexterone, an antiarrhythmic agent used to suppress abnormal rhythms of the heart. The product portfolio includes the first and only ready-to-use premixed intravenous bag formulations, as well as vials and a pre-filled syringe.

“Nexterone is a great addition to our leading portfolio of premix drugs and solutions for the acute care setting,” said Robert Davis, president of Baxter’s Medical Products business. “It offers clinicians a unique, ready-to-use antiarrhythmic agent for critical and time-sensitive situations, while also providing convenience to caregivers and value to pharmacists.”

Legal Help for Mothers Who Took Antiepileptic Meds During Pregnancy

Taking antiepileptic or anticonvulsant medication such Depakote or Depakene to treat epilepsy, bipolar episodes of manic depression, and migraine headaches, during pregnancy may lead to birth defects.

(PRWEB) April 20, 2011

The Consumer Justice Foundation provides information and outlets for help for consumers who are experiencing legal problems with insurance companies, large corporations and pharmaceutical companies hereby announces the release of a new and specific legal resource designed to provide information and a pathway to legal help with Depakotelaw.com. This resource will provide information regarding the uses for Depakote, the alleged Depakote birth defects associated with the use of this drug during pregnancy, and will provide a connection to Depakote attorneys for those women who have suffered as a result of what they believe are Depakote side effects.

Depakote is a pharmaceutical medication that’s prescribed for people who suffer from different seizure disorders that include epilepsy, migraine headaches and the manic episodes associated with bipolar disorder. It is manufactured by Abbott Laboratories and has been available on the American market for more than 25 years.

Over time, different allegations regarding Depakote birth defects have surfaced. These alleged Depakote side effects have included the tendency for women who used Depakote while pregnant to have children who were born with birth defects that have included spina bifida, cleft palate, atrial septal defects (heart malformations), and other serious medical conditions(“Birth Defects Linked to Valproic Acid,” WebMD Health News, June 9, 2010).

As a result of these allegations of Depakote side effects and because of the data mined from several studies, the United States Food and Drug Administration, or FDA has classified Depakote as a Category D pregnancy drug, stating “There is an increased risk of neural tube defects, such as defects of the brain and spinal cord, and other major birth defects, such as craniofacial defects (abnormally formed face and skull enclosing the brain) and cardiovascular malformations (abnormally formed heart or blood vessels), in babies exposed to valproate sodium and related products during pregnancy” (“Birth Defects Related to Depakote and Similar Drugs”, fda.gov, December 2009). Category D pregnancy drugs, according to the FDA are medications whereby:

“There is positive evidence of human fetal risk based on adverse reaction data from investigational or marketing experience or studies in humans, BUT the potential benefits from the use of the drug in pregnant women may be acceptable despite its potential risks.”

Experienced Depakote lawyers can help mothers who have given birth to children with birth defects and suspect Depakote use to be the cause. There are many expenses and hardships that go along with taking care of a child born with spina bifida, cleft palate, heart defects, or skeletal malformations. Depakote attorneys can help extract compensation for these injuries to provide better care for children unknowingly affected by antiepileptic medication. Depakote lawsuits (St. Clair County Circuit Court Case No. 10-L-651) have already been filed by more than a dozen mothers across the United States, claiming that Depakote caused birth defects in their children.

About the Consumer Justice Foundation:

The Consumer Justice Foundation is an online resource that provides useful information to consumers who need help handling problems with entities that include large corporations, including insurance companies and pharmaceutical companies, and one of the main functions of this resource is to help victims of pharmaceutical negligence so that they can obtain helpful information regarding their situation and information regarding how those who have been harmed can obtain legal help if necessary.

Retail Industry Continues to Lead in Online Ad Spending

Retailers are expected to spend $5.73 billion on online advertising this year, up from $5.16 billion in 2010, accounting for more than one in every five online ad dollars.

While the retail industry will see double-digit growth of 11% in 2011, other verticals will increase spending more quickly. Consumer packaged goods (CPG) spending will increase 29% to $2.66 billion this year, automotive spending will rise 14% to $3.24, and healthcare and pharma will boost online spending 13% to $1.17 billion.

The growth of online video ads—especially among brand marketers who have traditionally focused heavily on TV advertising—is a primary contributor to the growing market share of CPG and automotive companies. In 2009, CPG spending made up 6% of the overall $22.66 billion spent on internet ads that year, but by 2015 that proportion will rise to 13%. Automotive advertisers’ share of overall online spending is expected to grow from 11% in 2009 to 13% by 2015 as the industry continues to recover from the recession.

“Many industries that have traditionally focused on TV and print now see online video as an ideal and more cost-effective way to extend and complement their existing campaigns,” said Victoria Petrock, senior research analyst at eMarketer.

Healthcare and pharma spending will continue to move online, but spending will likely be affected by the loss of patent protection for several blockbuster drugs and forthcoming guidelines from the US Food & Drug Administration, which many in the industry hope will provide clearer direction for how pharmaceutical products can be marketed online.

As a result of this growth, more mature online advertising verticals—including telecom, financial services and travel—are expected to lose share through 2015.

“Online spending in these industries will grow,” Petrock said. “But they will constitute less of the online spending pie because many are already heavily invested online.”

To learn more about eMarketer’s estimates for online ad spending in specific industries, or to speak with Ms. Petrock, please contact Clark Fredricksen.
April 5, 2011 — Online and digital Radio revenues projected to grow 14.1% over next five years (0)
December 7, 2010 — Global Ad Spending to Surpass $500 Billion in 2011 (0)
November 29, 2010 — Vivendi Ranks as Top French Display Advertiser in Q3 2010 (0)
November 22, 2010 — Political News Sweeps American netizens (0)

Drugs shortfall solution sought

Drug distributors, public and private hospitals and all pharmacies will be required to provide monthly updates on what medications are available on shelves, so that drug shortages can be avoided.

The mandatory monthly reports will be used to populate a database of available medications on the website of the Health Authority-Abu Dhabi (Haad) from next month.

“The problem of drug shortages is present worldwide, for various reasons, even in those countries where drug manufacturing companies exist,” said Dr Mohammed Abu Elkhair, section head of drug and medical products regulations at Haad. “We are not immune here, neither in the UAE or in Abu Dhabi emirate, but it is our responsibility to find as many solutions as we can,” he said.

A Haad-led survey among pharmaceutical providers in 2008 and 2009 revealed that of the 7,039 medications registered in the country, only 4,036 were routinely available, according to Dr Abu Elkhair.

Although the survey is now two years old, it is still representative of the current situation, he said, as there has been only a slight increase in drug registration since then, with 7,226 medications currently registered.

The results of the survey illustrated that “this is a very critical issue”, said Dr Majdolin Abu Musallem, an import and export drug regulation officer at Haad.

“Our biggest concern is when there is a shortage of life-saving, essential medications that have no alternative, where the unavailability of the medicine can lead to the death of a patient,” she said.

Such incidents did happen, said Dr Abu Elkhair, citing the example of a patient who died last year in Al Gharbia because the hospital did not have Dantrolene, an antidote to hyperthermia or high fever.

“The patient was at the dentist, and after being given an anaesthetic, the doctor discovered that the patient was allergic to the anaesthesia. The antidote, Dantrolene was not available, and no alternative was present, so the patient unfortunately died of complication,” said Dr Abu Elkhair.

Another shortage is in psychiatric and narcotic medications, said Dr Abu Musallem, many of which are new and not yet registered.

“With the increase in psychiatrists and in diagnosis, there is a larger demand for medications, and yet we still face problems because importing psychiatric and narcotic medication takes a long time and the profit is not big enough for the distributor,” she said.

Today in Abu Dhabi, there are at least three registered medications, all life-saving and considered essential, that are not available. Warfarin 1mg, an anticoagulant used to prevent strokes, is only available in 3mg or 5mg, and patients must cut their pills in order to take the lower dosage, which is “very dangerous”, said Dr Abu Musallem.

Glucagon injections, used by diabetics in case of a sudden drop in blood sugar, are also unavailable.

“This is why we wanted to launch this online tool, so that we can look ahead, see what medications have alternatives and what don’t; see the trends of market history to know what drugs are more likely to be in shortage,” Dr Abu Elkhair said.

Instead of addressing a shortage after a doctor, hospital or patient files a complaint, Haad hopes the monthly reports will help shortages.

“We recently had a case of a patient in Abu Dhabi visiting three or four pharmacies looking for Noortropil 800mg tablets, that he later found in Dubai,” said Dr Abu Elkhair.

“Our programme will help map out exactly where medications are all over the country, so a patient or doctor knows where to go.”

Through monitoring the online reports, Haad will be able to advise hospitals and pharmacies on the availability of alternatives, restrict the use of drugs in short supply, monitor usage and resupply, facilitate the import of drugs across the region, and, when needed, make them available in Abu Dhabi.

Kansas launches pharmacy tracking system

TOPEKA | Kansas officials on Monday launched a new, electronic system designed to better track the sale of pharmaceuticals used in making methamphetamine.

Attorney General Derek Schmidt and representatives of the Board of Pharmacy said the new system, the National Precursor Log Exchange, instantly records sales of nonprescription drugs containing pseudoephedrine — a key ingredient in meth.

It’s the latest tool in the state’s campaign to reduce the production and sale of meth. Participation in the system was enabled by legislation passed by lawmakers earlier this year.

“Kansas has a serious methamphetamine problem,” Schmidt said.

Kansas joins nearly a dozen states that operate the electronic tracking system, including Arkansas and Missouri.

Much of the effort has focused on retail sales of pseudoephedrine. The decongestant is found in many cold and allergy medicines, but it’s also a key ingredient in meth.

Kansas passed a law in 2005 limiting the quantity of such nonprescription remedies that people can buy at one time. The medicines are kept behind pharmacy counters, and buyers have to sign a special register.

Schmidt said that law, passed before a similar federal law, has reduced the number of clandestine meth labs seized by law enforcement. He said the numbers have dropped from as high as 850 lab seizures annually in the late 1990s to between 120 and 150 presently.

“We’re not just starting this conversation today,” Schmidt said, a former state senator who helped write the 2005 Kansas law. “This doesn’t change that law.”

The new system replaces the paper tracking where customers were required to sign a log at the counter when purchasing the drugs. There is no cost for pharmacies to join the system, the senator said, with the cost of the new software required being funded by pharmaceutical manufacturers.

“We expect 100 percent participation,” said David Schoech, a Columbus pharmacist and member of the state board.

He said pharmacies could opt out, but then would have to either stop selling the medications entirely or require a prescription from a physician.

Sen. Vicki Schmidt, a Topeka Republican and pharmacist, said the new system will block those who abused the paper system by going from location to location to purchase the products to avoid the 9 gram limits per month at each store.

“It is the culmination of four years of work that will help track the sales of these methamphetamine precursor drugs,” she said.

The senator said some states, including Kansas, are considering passing a law requiring a prescription to purchase pseudoephedrine products. Oregon and Mississippi recently passed such laws. Pharmacists and law enforcement will know if someone has already purchased their limit for the month in any of the participating states and instantly block the sale.

The attorney general said the new system saves time for law enforcement that otherwise would have to go from pharmacy to pharmacy to gather the paper logs and enter the information in a database. The information will now be available instantly for routine checks and follow-up investigations.

Baxter Announces the Acquisition of Prism Pharmaceuticals

Baxter International Inc. (NYSE:BAX) announced today that it has entered into a definitive agreement to acquire privately-held Prism Pharmaceuticals, Inc., a specialty pharmaceutical company based in King of Prussia, PA. Prism Pharmaceuticals has developed and received U.S. Food and Drug Administration (FDA) approval for multiple presentations of NEXTERONE® (amiodarone HCl), an antiarrhythmic agent. The NEXTERONE product portfolio, which does not contain polysorbate 80 or benzyl alcohol, includes the first and only ready-to-use premixed intravenous (IV) bag formulations as well as vials and a pre-filled syringe.

The terms of the agreement include a total consideration of up to $338 million, consisting of an upfront cash payment of $170 million at closing and up to $168 million in future sales-based milestone payments. The transaction is expected to close in the second quarter of 2011, subject to customary closing conditions and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. This transaction is not expected to have a material impact on Baxter’s 2011 financial results.

The NEXTERONE premixed IV formulations were recently approved by the FDA in two ready-to-use dosage forms: 150 mg in a 100 mL flexible container for rapid 10-minute loading infusion and 360 mg in a 200 mL flexible container for subsequent loading and maintenance infusions. These ready-to-use formats require no admixing, eliminating potential medication errors associated with compounding. In addition, NEXTERONE can be stored at room temperature during its two year shelf life and fits in automated dispensing cabinets and crash carts, putting the product in patient care areas ready for use during acute, time sensitive and life-threatening situations. Prior to entering into the definitive agreement to acquire the company, Baxter was the contract manufacturer selected by Prism to manufacture the premixed IV bags using Baxter’s proprietary GALAXY container technology and the prefilled syringe.

“NEXTERONE is a great addition to our leading portfolio of premix drugs and solutions for the acute care setting. It offers clinicians a unique, ready-to-use antiarrhythmic agent for critical and time sensitive situations, while also providing convenience to caregivers and value to pharmacists,” said Robert M. Davis, president of Baxter’s Medical Products business. “Based on our strong hospital relationships and familiarity with the product, Baxter is well-positioned to launch the ready-to-use presentations of NEXTERONE.”

“The development and approval of NEXTERONE has been Prism’s greatest achievement,” said Warren Cooper, CEO of Prism Pharmaceuticals. “We look forward to Baxter’s success in launching this product, which will benefit clinicians and the patients they serve.”

Amiodarone is an antiarrhythmic medication used for ventricular tachyarrhythmias, or fast forms of irregular heartbeat. NEXTERONE Premixed Injection is indicated for initiation of treatment and prophylaxis of frequently recurring ventricular fibrillation and hemodynamically unstable ventricular tachycardia in patients refractory to other therapy.

Important Safety Information about NEXTERONE

NEXTERONE is contraindicated in patients with: known hypersensitivity to any of the components of NEXTERONE, including iodine, or in patients with cardiogenic shock, marked sinus bradycardia, and second- or third-degree atrio-ventricular (AV) block unless a functioning pacemaker is available. If hypotension occurs, treat initially by slowing the infusion; additional standard therapy may be needed, including the following: vasopressor drugs, positive inotropic agents, and volume expansion. If bradycardia and AV block occur, treat by slowing the infusion rate or discontinuing NEXTERONE. The most common adverse reactions (1-2 percent) leading to discontinuation of intravenous amiodarone therapy are hypotension, asystole/cardiac arrest/pulseless electrical activity, ventricular tachycardia (VT), and cardiogenic shock. Other important adverse reactions are torsade de pointes (TdP), congestive heart failure, pulmonary disorders, and liver function test abnormalities.

About Baxter International Inc.

Baxter International Inc., through its subsidiaries, develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. As a global, diversified healthcare company, Baxter applies a unique combination of expertise in medical devices, pharmaceuticals and biotechnology to create products that advance patient care worldwide.

This release includes forward-looking statements concerning agreements entered into between the company and Prism Pharmaceuticals, Inc., including expectations with respect to the closing of the transaction and product launches. The statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: satisfaction of regulatory and other requirements; actions of regulatory bodies and other governmental authorities; changes in laws and regulations; product quality or patient safety issues; failure to obtain the necessary consents or to satisfy other closing conditions; and other risks identified in the company’s most recent filing on Form 10-K and other SEC filings, all of which are available on the company’s website. The company does not undertake to update its forward-looking statements.

Bexion Pharmaceuticals Receives Outstanding Biotech Innovation Award

Bexion Pharmaceuticals was named the Biotech Innovation Award winner at the Cincinnati USA Innovation Awards program sponsored by the Cincinnati Business Courier, the Cincinnati USA Regional Chamber and CincyTech. The Innovation Awards celebrate outstanding innovation and the companies and people who have shown how new ideas can be developed into fuel for the regional Tri-State (Ohio/Kentucky/Indiana) economic engine.

“The Bexion team is honored to be the very first winner of the Biotech Innovation Award,” stated Dr. Ray Takigiku, co-founder and CEO of Bexion. “Cancer treatment and diagnosis is in dire need of innovation. We believe, and the award judges appear to agree, that our approach represents an entirely new, exciting and potentially paradigm-shifting approach to the treatment of cancer.”

Bexion is developing BXQ-350 nanovesicles as a potential treatment for the form of brain cancer called glioblastoma. BXQ-350 nanovesicles have an affinity for the membrane patches that are common in many types of tumor cells including glioblastoma cells. Bexion’s studies have shown effectiveness in the laboratory in multiple animal tumor models, and across a remarkable range of tumors in the test tube.

Research and Markets: Exit Strategy Options for Biotech & Pharmaceutical Companies in 2011-2012

In “Exit Strategy Options for Biotech & Pharmaceutical Companies in 2011-2012″, ExecSense examines what CEOs, CFOs (and their management teams) need to know about why the next year is a good time to consider selling their company to a strategic partner, competitor, or private equity fund. Take the time to view this online conference from the comfort of your office (on your computer, mobile phone, iPad, or printed out) to make sure you fully understand who is making acquisitions, current deal terms, how to increase your valuation and why many industry experts are saying the next 24 months could be one of the best times in the near future to consider selling your biotech/pharmaceutical company.

If you cannot call-in to view the 3-hour online conference at 1:00 EST, Friday, April 29th, ExecSense will email you the PowerPoint, audio and supplementary files by the next day for viewing at your convenience (you simply need to register beforehand). After you have registered to attend, you can submit a list of 3 specific topics/questions you would like to have addressed in the online conference (all information will be kept anonymous) that are guaranteed to be answered/covered by the speakers during or after the online conference.

This online conference features the insights of a panel of investment bankers, industry analysts and lawyers that all have extensive experience specifically working with biotech/pharmaceutical companies, and focuses on:
Everything you need to know about the best exit strategy options for biotech and pharmaceutical companies in 2011-2012
Perspectives from leading biotech/pharmaceutical investment bankers on why the next 24 months may be a very good time to consider selling your company
A list of the biotech/pharmaceutical companies that are most actively doing acquisitions right now, what types of companies they are buying, important deal points to note about their most recent acquisitions, and how to best position your company to create a bidding type atmosphere to get you the highest valuation possible
Alternative options to selling your entire company, including selling a minority or majority stake in the company due to favorable tax laws for 2012, estate planning opportunities, and the current state and volatility of the financial markets
A comprehensive overview of being acquired versus a merger, reverse-merger, IPO, and other potential exit strategies, including a detailed look at the financial and legal sides of each strategy and how they would impact management, employees, and investors/shareholders
How to identify and approach a strategic partner, competitor, or private equity fund that is the optimal fit for acquiring your company
The 10 questions most frequently asked by CEOs and CFOs of biotech/pharmaceutical companies about what factors impact their company’s valuation and attractiveness to buyers (or public investors), and what they should be doing right now to best position their company for a successful exit strategy
Case studies of other biotech and pharmaceutical companies that have recently sold in the current economic environment, what had the greatest impact on getting them the best deal terms and valuation possible, and key lessons for positioning your own company for a successful exit strategy
This online conference also includes a 15-page research report featuring comparable analysis of acquisitions in the biotech/pharmaceutical industry, the most up-to-date information on biotech/pharmaceutical company valuations, acquisition deal terms, negotiation strategies, tax strategies, and more, including a detailed look at the financial and legal sides of key deal terms and how they would impact the CEO, management, employees, and investors/shareholders

Physicians Prefer Pharma Reps to Deliver Information via iPad®

Intouch Solutions® Inc., a digital marketing agency servicing the pharmaceutical industry, today released research detailing the preferences of physicians who receive visits from pharmaceutical sales representatives and how they prefer product information (called a “detail”) to be delivered. The survey results were announced at the CBI Bio/Pharmaceutical Forum on Specialty Sales Models in San Diego.

“In an era of increasingly difficult access to physicians, we believe tools such as the iPad and similar devices will help open new lines of communication across health care stakeholders”

Among surveyed physicians:
More than one third had received an iPad detail from a pharma sales representative
Of those that had received an iPad detail, 68% reported being extremely satisfied or very satisfied with the format

“In an era of increasingly difficult access to physicians, we believe tools such as the iPad and similar devices will help open new lines of communication across health care stakeholders,” said Faruk Capan, Intouch Solutions CEO.

Younger Physicians Keen on Digital Delivery

The research also explored disparities between older and younger physicians. Overall, digital detailing— information delivered in person by a representative via digital device such as a smartphone, iPad or tablet—was still the preference. In fact, 8 in 10 physicians rated digital detailing as the same or better than previous methods such as paper-based visual aids. But this preference was higher by a wide margin among younger physicians: Significantly more physicians who had been in practice 20 years or less believed digital detailing was better than previous methods such as paper-based visual aids. The opposite was true for physicians in practice more than 20 years who were more comfortable with paper-based details.

Survey Methodology

The survey was fielded online by The Harrison Group in March 2011 among 100 U.S. physicians. All physicians surveyed had an active clinical practice and were a mix of general practitioners and specialists. In addition, physicians had received some sort of in-person detailing by a pharmaceutical representative in the last six months, and half of the sample (50 physicians) received in-person detailing via iPad. The total sample reported was weighted to the true proportion of iPad presentations. Physicians were asked a battery of questions about their in-person detailing experience and satisfaction with different tools used.

“We’re working with many of our pharma clients now to help them adapt to these new devices at a rapid rate, and we expect the trend to continue,” said David Windhausen, Intouch Solutions senior vice president, who delivered select results during his conference presentation this morning.

How does the revised ABPI code of practice affect what pharmacists do?

Pharmacists working in the pharmaceutical industry in particular need to know about the code and its provisions. But any pharmacist on the receiving end of the industry’s marketing efforts should also be aware of the latest changes.

These include no longer giving away branded promotional aids, increasing transparency between health professionals and industry colleagues and allowing pharmacists in industry to take more responsibility for the approval of promotional material.

Pharmacists should understand how the code fits with the General Pharmaceutical Council’s standards of conduct, ethics and performance. To help with this, the PMCPA has developed an e-learning module about the code for health professionals.

The module is a free training resource and has been certified as conforming to continuing professional development guidelines. It is available from the PMCPA website (see also a flyer PDF 1.1 MB).

The module investigates the relationship between the industry and health professionals by focusing on the responsibilities of both sides when entering agreements about sponsorship, meeting representatives, medical education, attending meetings or working as a consultant.

A “Quick guide to the code for health professionals” has been developed to complement the module. It is also available to download from the PMCPA website.

Although some complaints about companies’ activities are submitted to the PMCPA by competitor companies, on average more complaints are received from health professionals. Typically complainants will allege that a company’s promotional claims are misleading and submit published studies and other literature in support of their position.

The PMCPA has a code of practice panel whose job is to evaluate the parties’ submissions to determine where the balance of the evidence lies. There is an appeals procedure for parties that do not accept the panel’s rulings.

One of the keys to successful self-regulation is transparency and all the complaints proceedings are published in the form of case reports both online and in the quarterly “Code of practice review”. The publication of case reports acts as both a sanction for the offending company and as a learning tool for others.

In addition, for the most serious cases, an advertisement with brief details of the case is published in the professional press, including The Pharmaceutical Journal.

Beacon Enterprise Solutions Group adds pharmaceutical client

Beacon Enterprise Solutions Group Inc. has signed a third U.S.-based Fortune 500 pharmaceutical client, according to a company news release.

Terms of the deal and the name of the client were not disclosed.

Beacon will provide planning, design and engineering services for the client’s global data center. Beacon expects to complete the project late in its third fiscal quarter, which ends June 30.

“The signing of another Fortune 500 client is the beginning of new growth and momentum for our company, following our decision last year to refocus on our core business,” said Bruce Widener, chairman and CEO of Beacon, in the release.

Jerry Bowman, president and chief operating officer of Beacon, said in the release that the company expects to add several new major clients this year.

For its fiscal year ended Sept. 30, 2010, Beacon reported a net loss of $5.7 million on sales of about $14 million.

Industry criticises Obama’s call for cheaper drugs

The US pharmaceutical industry hit back against Barack Obama’s deficit reduction plan, warning that his proposals would stymie medical advances and hurt drug companies. One top executive said the president’s speech raised fundamental questions about the industry’s outlook in the US.

The reaction signalled that a de facto truce established between the powerful drug industry and the White House during negotiations to pass healthcare legislation last year was officially over.

Mr Obama said in a speech on Wednesday that the “purchasing power” of Medicare, the government-sponsored insurance programme for the elderly, should be used to cut prescription drug spending and accelerate the introduction of cheaper generic brands on to the market.

The remark – just one sentence in an hour-long speech that focused on deficit reduction – sounded like fighting talk to the pharmaceutical industry, which supported Mr Obama’s healthcare initiative last year.

“Unfortunately, the president’s approach to reducing our deficit fails to consider the impact on the entire policy tapestry – local and federal – that influence our industry’s current and future health,” said John Castellani, chairman of Phrma, the industry trade group. “Specifically, proposals to expand rebates, saddle seniors with higher premiums and slash data protection for biologics are bad for patients and are bad for innovation.”

Phrma said plans to impose “price controls” would slow the pace of drug innovation and spending on research and development and that better drugs would reduce hospitalisations and lower healthcare costs.

Drug companies took Mr Obama’s comments as a threat to the “non-interference” clause in the Medicare drug scheme, which restricts the government from manipulating prices in the industry.

David Brennan, chief executive of AstraZeneca, told CNBC television on Thursday that he was optimistic about the US pharmaceutical market until Mr Obama’s speech.

“Some of the comments that were made yesterday don’t really provide the kind of policy framework for integration there that we’re looking for, so we’re just more concerned about it,” he said.

As part of a deal agreed behind closed doors in 2010, industry negotiators agreed to offer $80bn in drug discounts to elderly patients and actively lobbied for the healthcare overhaul. In exchange, proposals supported by some Democrats that would have dented the industry’s profits were taken off the table.

The White House has already faced a tough political opponent in the insurance industry, which steadfastly lobbied against the healthcare bill. The possibility that it could now also face similar pushback from Big Pharma raises further political challenges for the administration.

Mr Obama’s proposal also called for strengthening the Independent Payment Advisory Board, which was created during last year’s reform act to curb Medicare spending growth, and banning brand-name drug companies from making so-called “pay for delay” deals with generic companies to keep their products off the market. The plan estimates savings of $200bn over 10 years.

Mpex Pharmaceuticals, Inc. to be Acquired by Axcan

Mpex Pharmaceuticals, Inc. announced today that Axcan and Mpex have entered into agreements pursuant to which Axcan will acquire all of the outstanding shares of Mpex and its lead product candidate, Aeroquin™. A proprietary aerosol formulation of levofloxacin, Aeroquin is currently in Phase 3 clinical trials for the treatment of pulmonary infections in patients with cystic fibrosis (CF).

All assets not associated with Aeroquin™, including financial and human resources, will be spun out of Mpex and into a newly formed company. The new company will remain in San Diego and the former personnel of Mpex will continue to lead the Aeroquin clinical development program in collaboration with Axcan.

Specific financial terms for this transaction were not disclosed but include an upfront payment and a series of payments contingent on regulatory and commercial success. The full acquisition, which is contingent upon customary closing conditions, is expected to close in the second half of 2011.

“Axcan has a long history of developing and commercializing pharmaceutical products for the cystic fibrosis community, as evidenced most recently by ZENPEP®,” stated Daniel Burgess, President and CEO of Mpex. “We look forward to working with the dedicated team at Axcan to help bring this potentially important new treatment option to patients with CF.”

About Mpex Pharmaceuticals

Mpex Pharmaceuticals is a clinical stage biopharmaceutical company whose mission is to develop important new therapies to combat the growing issue of antibiotic resistance. Mpex’s most advanced product candidate, Aeroquin™ (MP- 376), is a proprietary aerosol formulation of levofloxacin that is currently in Phase 3 clinical trials for the treatment of pulmonary infections in patients with cystic fibrosis. The Company has a number of additional antibiotic programs designed to address antibiotic resistance in gram negative organisms, including a collaboration with GlaxoSmithKline focused on developing drug candidates utilizing Mpex’s efflux pump inhibitor (EPI) technology.

SXC HEALTH SOLUTIONS ANNOUNCES ACQUISITION OF MEDMETRICS HEALTH PARTNERS, INC.

SXC Health Solutions Corp. (“SXC”) (NASDAQ: SXCI, TSX: SXC), announced today it has entered into a definitive agreement to acquire substantially all of the assets of MedMetrics Health Partners, Inc. (“MedMetrics”), the full-service PBM subsidiary of Public Sector Partners, Inc. which is affiliated with a major medical school.

“We are very pleased to welcome MedMetrics and its employees into the SXC fold,” said Mark Thierer, Chairman, President and CEO of SXC. “We have worked with MedMetrics as a client and a partner over the past seven years; they began with SXC as a healthcare IT client and later expanded the relationship to include PBM services. This transaction is in keeping with our strategy to acquire assets that currently utilize SXC’s technology platform and can be easily integrated. We look forward to leveraging our existing partnership and the strong MedMetrics footprint in the northeast to continue to grow the SXC business in that market.”

“MedMetrics has had a long-term, collaborative relationship with SXC and coming together is a natural fit for both of us. The strength of our relationship combined with the resources that SXC brings to the table will bring additional opportunities for our clients to improve care while benefiting from enhanced operational efficiencies,” said Jim Hooley, Interim Managing Director of MedMetrics.

The acquisition is subject to various closing conditions and is expected to be completed during the second quarter of 2011. MedMetrics manages approximately $200 million in annual drug spend and is accounted for in SXC’s PBM segment. When taking into account deal-related closing expenses and related amortization, the acquisition is not expected to have a material impact to 2011 fully-diluted GAAP EPS.

About MedMetrics Health Partners, Inc.

Founded in 2004, MedMetrics Health Partners, Inc. is a full-service PBM located in Worcester, Massachusetts. MedMetrics features a unique business model which focuses on true net cost drug management with full transparency in all financial transactions and data reporting. MedMetrics is unique among PBMs because of their association with a major medical school, which affords direct access to expert formulary and clinical guidance and academically rigorous, evidence-based clinical programming support.

About Public Sector Partners, Inc.

Public Sector Partners, Inc. is a health care management and consulting organization, affiliated with the University of Massachusetts Medical School’s Commonwealth Medicine division. Public Sector Partners offers a full array of program management and consulting services to public health and human service agencies and managed care organizations.

About SXC Health Solutions Corp.

SXC Health Solutions Corp. is a leading provider of pharmacy benefits management (PBM) services and Health Care Information Technology (HCIT) solutions to the healthcare benefits management industry. The SXC’s product offerings and solutions combine a wide range of PBM services and software applications, application service provider (ASP) processing services and professional services, designed for many of the largest organizations in the pharmaceutical supply chain, such as health plans, employers, Federal, provincial, and, state and local governments, pharmacy benefit managers, retail pharmacy chains and other healthcare intermediaries. SXC is headquartered in Lisle, Illinois with multiple locations in the US and Canada.

Forward-Looking Statements

Certain statements included herein, including those that express management’s expectations or estimates of our future performance, constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. We caution that such forward-looking statements involve known and unknown risks, uncertainties and other risks that may cause our actual financial results, performance, or achievements to be materially different from our estimated future results, performance or achievements expressed or implied by those forward-looking statements. Numerous factors could cause actual results to differ materially from those in the forward-looking statements, including without limitation, our ability to complete the acquisition of MedMetrics; our ability to achieve increased market acceptance for our product offerings and penetrate new markets; consolidation in the healthcare industry; the existence of undetected errors or similar problems in our software products; our ability to identify and complete acquisitions, manage our growth and integrate acquisitions; our ability to compete successfully; potential liability for the use of incorrect or incomplete data; the length of the sales cycle for our healthcare software solutions; interruption of our operations due to outside sources; our dependence on key customers; maintaining our intellectual property rights and litigation involving intellectual property rights; our ability to obtain, use or successfully integrate third-party licensed technology; compliance with existing laws, regulations and industry initiatives and future change in laws or regulations in the healthcare industry; breach of our security by third parties; our dependence on the expertise of our key personnel; our access to sufficient capital to fund our future requirements; and potential write-offs of goodwill or other intangible assets. This list is not exhaustive of the factors that may affect any of our forward-looking statements. Other factors that should be considered are discussed from time to time in SXC’s filings with the U.S. Securities and Exchange Commission, including the risks and uncertainties discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2010 Annual Report on Form 10-K and subsequent Form 10-Qs. Investors are cautioned not to put undue reliance on forward-looking statements. All subsequent written and oral forward-looking statements attributable to SXC or persons acting on our behalf are expressly qualified in their entirety by this notice. We disclaim any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.

Electronic medical records poised to cut costs, improve patient care

Jennifer Gomez sat at her doctor’s office in Evanston after her appointment, waiting for a handwritten prescription. Minutes later, her doctor wondered why Gomez was still in the office.

What the 20-year-old Loyola University Chicago student didn’t know was that not only had the prescription been sent to the pharmacy, it also was ready to be filled.

“The prescription was at my pharmacy before I even walked out of the office, because everything is computerized,” Gomez said of her experience at a clinic run by NorthShore University HealthSystem. “I was surprised, expecting to wait.”

Gomez is among the first patients to experience the benefits of electronic medical records, as the nation’s health care industry moves from paper files to computerized records. The momentum is expected to pick up this year as federal stimulus money to help with the transition is starting to arrive at doctor offices and hospitals across the U.S.

Already, hundreds of hospital operators nationwide, including the largest ones in the Chicago area such as NorthShore, have entered the digital age, allowing patients to access email alerts to remind them of appointments, request medical test results or easily connect with insurance companies, pharmacies and other key players of the health care system.

Industry observers project the digitizing of medical records could save the nation’s health care system hundreds of millions of dollars because it would reduce or eliminate redundant testing and the occurrence of errors in patients’ files, among other benefits.

“If you are an emergency room doctor and you are trying to figure out what to do next, an electronic medical record may prevent you from having to do another” test, Dave Seaman, chief executive of Pronger Smith Medical Care, said of expensive procedures such as MRIs and other diagnostic imaging that can cost hundreds or thousands of dollars.

About 90 percent of the medical care providers at Pronger Smith, which has more than 60 doctors, physician’s assistants and nurse practitioners in Tinley Park and Blue Island and handles about 50,000 patients each year, have implemented electronic medical records, Seaman said.

As more health care systems adopt electronic records, consumers also should benefit from the efficient sharing of medical information.

“Most physicians will tell you that if you give me your prescriptions that you are on and show me your lab tests, that tells a pretty good snapshot of a patient,” Seaman said. “(Without electronic records), you’d have all these lab test results, and you would have them in 50 to 100 sheets of paper, if the patient even had them.”

The shift to electronic medical records has been in the works for years, but obstacles such as the cost of digitizing files and concerns about patient privacy have held back many hospitals and physician practices.

A key hurdle has been the doctors themselves. The physician community is highly fragmented, numbering in the hundreds of thousands, with more than 60 percent of office-based physicians in single or a small practice of four doctors or fewer, according to the American Medical Association. So coordinating implementation has been a battle.

These doctors also have been concerned about the affordability of information systems, which can cost tens of thousands of dollars for a small practice. The doctors also worry whether the systems will work and whether they can communicate with other computerized medical systems.

NorthShore digitally connected health records to its three hospitals in Evanston, Glenview and Highland Park, along with its medical group offices, in 2003 at a cost of $35 million. In 2009, its hospital in Skokie, which it purchased in 1999, “went live for an additional cost of approximately $5 million,” NorthShore said.

In 2009, Congress passed and President Barack Obama signed into law the Health Information Technology for Economic and Clinical Health Act, which was part of the federal stimulus legislation known as the American Reinvestment and Recovery Act. The legislation aims to provide more than $20 billion to get doctors and hospitals to use electronic medical records, computerized prescription systems and other health information technology.

And doctors for the first time are eligible to begin getting more than $40,000 in extra Medicare payments this year if they upgrade their health information technology. If doctors can’t demonstrate the “meaningful use” of certified electronic health record system by 2015, they face reduced Medicare payments, federal health officials say.

In Illinois, the state received more than $18 million in federal stimulus dollars to support a statewide health information exchange that will allow medical care providers to share data electronically in a collaborative, secure system, Gov. Pat Quinn’s office said. That, analysts say, should eliminate another hurdle that doctors have said prevented their practices from buying a system: the fear it might not work with a system made by another company.

The financial support is paying off, the nation’s top health official said.

“In the last two years, the share of primary care providers using a basic electronic health record has gone from under 20 percent to nearly 30 percent,” Kathleen Sebelius, secretary of Health and Human Services, told hospitals and health systems in February at the Health Information and Management Systems Society annual meeting in Orlando, Fla.

“When President Obama came into office, only two in 10 doctors … used even a basic electronic health record system. Over the last two years, we’ve created unprecedented momentum behind health information technology.”

But challenges are expected to remain for smaller and solo doctor offices, analysts say.

“The initial startup and transition is difficult,” said Dr. Stephen Sproul, a family physician at Advocate Lutheran General Hospital in Park Ridge.

“You have to learn a whole new way of documenting your patient care and managing your patient interactions, and that change is difficult,” Sproul said. “You start to see a light at the end of the tunnel after about a year. Physicians have to be patient, but they will see results.”

BioScrip Pharmacy Accredited

BioScrip Inc. (BIOS – Analyst Report), a health care-related company recently received accreditation for its specialty pharmacy and mail service pharmacy from Utilization Review Accreditation Commission (URAC), a Washington-based health care accrediting organization that establishes quality standards for the health care industry.

URAC reached its decision after conducting a detailed review considering 146 parameters on BioScrip’s customer service and clinical pharmacy processes. Ensuring BioScrip’s positive approach towards healthcare needs, this award is expected to improve the company’s position in the specialty pharmacy industry.

BioScrip’s specialty pharmacy and mail service pharmacy provide condition-specific clinical management, distribution and reimbursement programs of oral, injectable, and IV drug products for individuals suffering from chronic conditions.

BioScrip, in partnership with healthcare payers, pharmaceutical manufacturers, government agencies and physicians strive to deliver cost effective programs to patients. Presently with all its efficiencies, competencies and high rate of usage of chronic medicines, specialty pharmaceuticals have become the fastest growing segment.

In the fourth-quarter of fiscal 2010, BioScrip recorded a 31.9% year over year increase in total revenue with a 12% rise in pharmacy revenues. However, in recent quarters the company has been witnessing disappointing margins driven by pricing concessions on specialty drugs, rising reimbursement expenses, the new industry-wide AWP standard and poor macro economic conditions. The highly leveraged balance sheet continues to remain a matter of concern for BioScrip.

Moreover, the company faces significant competition in the pharmaceutical healthcare services industry from players like CVS Caremark (CVS – Analyst Report), Medco Health Solutions (MHS – Analyst Report) as well as many smaller organizations that operate on a local or regional basis.

However, the company has adopted a new strategic assessment policy that might lead to an improved revenue scenario going forward. Also the success at the Critical Homecare Solutions business is expected to improve BioScrip’s competitive position.

The company is focused on expanding its business through sales force expansion and further contractual agreements in new markets. Although several issues have been witnessed by the company in the past few quarters, with the gradual recovery in the economy, the situation could improve.

Walgreens Vice President of Clinical Affairs Examines Impact of Growing Specialty Pharmacy Industry at Pinsonault Associates Managed Markets Summit

Walgreens Vice President of Clinical Affairs Dr. David Lorber discussed key trends in specialty pharmacy today at the Pinsonault Associates Managed Markets Summit in Miami. The session, titled “Employer Issues in Specialty Pharmacy,” examined the impact for payers, including the role of adherence in cost management and containment, benefit and coverage decisions, formulary and medical policy, pipeline management, provider network and member satisfaction and disruption.

“As more people rely on specialty pharmacy medications, the health care industry needs to place an emphasis on cost control, appropriateness of care, adherence and waste management.”

Specialty medications include complex treatment regimens and medications that require special delivery, storage and handling. Depending on the condition and prescribed therapy, these medications may be taken orally, intravenously or self-injected. There is also enhanced clinical management to monitor medication adherence, side effects and dosage changes. Specialty prescriptions typically cost about $2,000 for a 30-day supply, which is 28 times the traditional retail prescription. Approximately 3-5 percent of the population takes a specialty medication, and that number is increasing.

“Specialty pharmacy is one of the most rapidly growing segments of total drug spending, which brings both concern as well as opportunity for enhanced efficiencies,” said Dr. Lorber. “As more people rely on specialty pharmacy medications, the health care industry needs to place an emphasis on cost control, appropriateness of care, adherence and waste management.”

Dr. Lorber discussed a case study that showed consistent patient adherence can result in savings. Walgreens multiple sclerosis patients adherent to medications, when compared to less adherent patients, resulted in savings of about $1.1 million for a large national insurance payer for the 801 patients over the two-year period. The same case study also showed higher adherence reduced costs related to multiple sclerosis emergency room visits, inpatient stays and use of durable medical equipment.

“Improving the health and well-being of patients can be accomplished by providing convenient access to drugs and ensuring there is a consistent and coordinated care management programs,” said Dr. Lorber. “Patient counseling and education by trained pharmacists and nurses, like those at Walgreens and Take Care Health Systems, translates into fewer office visits as a result of improved adherence. Proactive patient monitoring also drives early recognition of, and response to, adverse drug reactions and side effects, resulting in improved outcomes.”

Walgreens specialty pharmacy offers patient assistance coordination, multiple distribution channels, strong manufacturer relationships, advanced clinical programs, cost management programs and access to limited distribution drugs.

Dr. Lorber joined Walgreens as the vice president of clinical affairs in November 2010 and is responsible for clinical oversight and consistency of Walgreens clinical programs. Previously, he was vice president of medical affairs for CVS Caremark. Prior to joining CVS Caremark, Dr. Lorber was medical director at Blue Cross Blue Shield of New Mexico in Albuquerque and a private practitioner in pulmonary, critical care and internal medicine. He has held numerous positions in community leadership and professional organizations including president of the New Mexico Chapter of the American Thoracic Society and faculty appointments as assistant clinical professor of medicine with the University Of New Mexico School Of Medicine, and as assistant professor with the University of Arizona Medical Center in Tucson and the Tucson VA Hospital.

Monitoring System to Help Curb Prescription Drug Abuse

With prescription drug abuse on the rise in Maryland and across the country, a new monitoring system in the state is expected to help the issue.

The Maryland General Assembly passed a bill last week that would allow pharmacies to use a database system to input customer information and the type of medication they’re being prescribed that people in the health industry can gain access to.

Currently people will abuse pain medication and will go to great lengths to do so. This has become known as “doctor shopping.” A person will go to one doctor and get pain medication prescribed to them that is meant to last a couple weeks. That same person will then go to a different doctor or hospital emergency room days later and have the same medication written for him or her. The doctor does not realize the patient had the same medication prescribed days prior. The patient will also go to a different pharmacy to get his or her medication.

Often times the person getting this medication will use it themselves, or sell them on the street. Pain medicines- narcotics in particular- have high value on the street.

The new monitoring system in the state will allow doctors and pharmacists to put in a person’s name and if they have gotten medication in the previous days that should have lasted a while, the prescription will not be filled.

It’s unclear when this new system will be available to pharmacists and doctors.