Daily Business Report-June 4, 2019
Researchers determined that prices of top-selling branded prescription drugs increased by a median of 9.5 percent annually. (Photo courtesy of Scripps Research)
Scripps Research Report
Prescription drug cost steadily soar,
yet price transparency is lacking
After reviewing tens of millions of insurance claims for the country’s 49 most popular brand-name prescription drugs, a team from Scripps Research Translational Institute found that net prices rose by a median of 76 percent from January 2012 through December 2017—with most products going up once or twice per year.
The substantial price increases were not limited to drugs that recently entered the marketplace, as one might expect, or to those lacking generic equivalents. In addition, the increases often were “highly correlated” with price bumps by competitors.
The researchers concluded that the current rebate system, which incentivizes high list prices for drugs and relies heavily on privately-negotiated rebates to pharmacies, plays a central role driving up costs for consumers. The byzantine and secretive rebate system, they noted, prevents consumers from making informed decisions about purchasing medications.
The study appears in the latest issue of JAMA Network Open.
“It’s no secret that health care prices are growing exponentially in the United States, but what has been less clear is the extent to which certain prescription drugs are contributing to that trend—especially when prices are clouded by a complicated rebate system,” says lead author Nathan Wineinger, PhD, director of biostatistics at Scripps Research Translational Institute and assistant professor in Scripps Research’s Department of Integrative Structural and Computational Biology. “By looking at price data for the most popular brand-name drugs, we found striking and consistent price increases occurring at regular intervals, regardless of competition in the marketplace.”
The Scripps Research team obtained the prescription data from a proprietary Blue Cross and Blue Shield data set known as BCBS Axis, which includes commercial insurance claims from more than 35 million Americans covered by independent Blue Cross and Blue Shield companies in the United States.
With a focus on the 49 most popular brand-name drugs with pharmacy claim data available for the entirety of their five-year research window, Wineinger and his team, led by Eric Topol, MD, conducted a high-dimensional data analysis to examine each claim’s total price. This was represented by the total out-of-pocket costs paid by the insured consumer and the amount paid by the insurer.
Researchers determined that prices of top-selling branded prescription drugs increased by a median of 9.5 percent annually, which equates to a doubling in price every seven to eight years. And they found that pairs of brand-name drug competitors that treat similar conditions—such as Humira and Enbrel, both for rheumatoid arthritis—demonstrated highly correlated price increases.
“It’s bad enough to see the relentless increase in drug prices, but this work underscores it is occurring without transparency or accountability,” says Topol, founder and director of Scripps Research Translational Institute and executive vice president of Scripps Research. “It is especially concerning to see drugs in the same class having increases that appear to be coordinated.”
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SPAWAR changes name to NAVWAR
Space and Naval Warfare Systems Command (SPAWAR) has changed its name to Naval Information Warfare System Command (NAVWAR), the Navy announced.
The Chief of Naval Operations, Adm. John Richardson, announced the name change at the Information Warfare Senior Leadership Symposium in Washington D.C. on Monday. The change is effective immediately.
“We have been on a steady drumbeat since the issuance of the Design for Maintaining Maritime Superiority to further normalize information warfare into the way we do operations and warfighting in the Navy,” said Richardson. “Today, we will take an important step in that direction as we rename the Space and Naval Warfare Systems Command to the Naval Information Warfare Systems Command. This new name more accurately describes the full totality of the mission, supporting naval warfare — from seabed to space.”
The intent of the name change is to recognize the competitive advantage that information warfare brings to the fight. The change aligns the command name with the command mission to identify, develop, deliver and sustain information warfare capabilities and services that enable naval, joint,coalition and other national missions.
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Upcoming Major Events
at the San Diego Convention Center
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Cisco Live, June 9-13, 26,000 attendees
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. Xerocon San Diego, June 17-19, 1,200 attendees
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. DIA Global Annual Meeting, June 23-27, 7,500 attendees
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. AVID Summer Institute, June 24-26, 5,000 attendees
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. Jazercise “50 Years Strong” Celebration International Convention, June 23-27, 7,500 attendees
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Capstone Advisors acquires El Camino
Square Shopping Center, Encinitas
Capstone Advisors has acquired El Camino Square Shopping Center in Encinitas for $12.2 million. The seller was US Financial, LP.The 27,499-square-foot property is located at 191 N. El Camino Real, on the northeast corner of El Camino Real and Via Molena, in the heart of Encinitas’ retail corridor.
The property becomes Capstone’s ninth commercial asset in San Diego County and the firm’s third acquisition in the past eight months.
“El Camino Square is a great addition to our existing San Diego real estate portfolio,” said Alex Zikakis, president and CEO of Capstone Advisors.
The property is fully occupied with 21 tenants, including Supercuts, T-Mobile and a broad variety of locally owned restaurants, retailers and service businesses, several of whom have been at the property for 30 years or more. Capstone intends to perform an exterior renovation of the property which will include a variety of building and site improvements.
Capstone was represented by Vic Gausepohl and Kirk Allison of Colliers International. The seller represented itself. Financing was provided by La Jolla, California based Silvergate Bank. Gausepohl and Allison will handle leasing for the property.
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Seattle Sperm Bank opens third
laboratory location in La Jolla
The Seattle Sperm Bank (SSB) announces the opening of its third laboratory location, at 8950 Villa La Jolla Drive, Suite B214, in La Jolla. The facility will operate as the San Diego Sperm Bank. SSB also operates the Phoenix Sperm Bank, located in Tempe, Ariz.
“Our new laboratory is located within walking distance of the UCSD School of Medicine, Rita Atkinson Residences and the VA San Diego Healthcare System,” said Angelo Allard, general supervisor for Seattle Sperm Bank. As featured in the U.S. News and World Report, UCSD has been ranked in the top 10 Universities for over a decade, and according to Washington Monthly, is the top public university in the nation for contributions to social mobility, research and public service. This is exactly who we want in our sperm donor program; someone who is committed to making the world a better place, and is excited about helping families all around the world achieve their dreams of having happy, healthy babies. I am excited about the opportunity for SSB to engage the San Diego student and professional population, and to be able to offer these high-quality donor options to our recipients.”
Allard said Seattle Sperm Bank is experiencing increasing demand, both domestically and internationally, for its high-quality sperm donors. Stringent eligibility requirements result in less than 1 percent of applicants making it through the process to become fully qualified donors, he said..
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SDSU Partners with Sharp HealthCare
to improve health communication
By Sofia Bert/SDSU
San Diego State University is launching its first-ever certificate program for medical-field professionals in a partnership with the regional Sharp HealthCare system. The certificate program will focus on improving health communication and help professionals maintain their health education credits, which allow them to continue their practices.
“This program is going to be very hands-on, it’s going to be very applied, every class is going to have something that the students are going to be able to take away from as a deliverable outcome and can take it back to their organization,” said Perry Pauley, director of the health education continuing medical education program at SDSU.
The certificate program is offered with two different tracks, one for health care providers and one for health promotion professionals. There is a different set of classes for each track and all classes are six weeks with a two-hour module each week.
Pauley said the program is designed to meet the needs of working health care professionals, helping them manage their career and classes at the same time. Incorporated in the curriculum is health communication research that has been done at SDSU, he added.
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Team SkyGuardian Canada looking to grow
General Atomics Aeronautical Systems Inc., CAE Canada, MDA, and L3 WESCAM are expanding Team SkyGuardian to include even more Canadian companies. Team SkyGuardian Canada (TSC) is a coalition of companies who support the MQ-9B SkyGuardian to fulfill Canada’s Remotely Piloted Aircraft System (RPAS) requirements.
Team SkyGuardian presents Canadian industry with business opportunities in the Canadian RPAS Project and across the global fleet of more than 400 MQ-9 aircraft flying throughout the world. To facilitate the Team’s growth, GA-ASI and Team SkyGuardian will engage industry across all regions of Canada through industry events. The goal of the events will be to hold business-to-business meetings where companies can brief their core capabilities and move toward meaningful opportunities for collaboration.
While current Team SkyGuardian members represent the larger defense and aerospace companies in Canada, the upcoming industry engagements will emphasize small and medium-sized companies.Announcements for industry engagements and events will be posted on the Team SkyGuardian website: teamskyguardiancanada.com.
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Gift from Ron and Alexis Fowler creates collaboration
between USD and University of St. Thomas
The University of San Diego (USD) and the University of St. Thomas announced a joint initiative that will increase the scope and scale of social entrepreneurship ecosystem at their respective universities and participating universities around the world. Made possible by Ron and Alexis Fowler who pledged a multi-million-dollar commitment, the Fowler Global Social Innovation Challenge will expand USD’s very successful Global Social Innovation Challenge to include St. Thomas.
The Fowler’s pledge to USD commits $2.5 million to the Fowler Global Social Innovation Challenge, and $100,000 to the Fowler Business Concept Challenge in USD’s School of Business. Through the University of St. Thomas Schulze School of Entrepreneurship, the Fowler Business Concept Challenge has provided students at St. Thomas with an entrepreneurial springboard to explore new, creative innovations to solve both business and societal problems.
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Veterans Center expansion at
Cal State San Marcos almost completed
The wait is nearly over for Cal State San Marcos’ military-affiliated students. The much-anticipated expansion of CSUSM’s Veterans Center is nearing completion, and many of the entities involved in making it a reality gathered to celebrate a milestone on May 24.
About 40 people attended a private “topping off” ceremony on the deck of the original Veterans Center. As President Karen Haynes spoke, attendees had a clear view of the ongoing expansion and they received a tour of the fledgling facility following the formal program.
“Today’s milestone is another sign of our university’s growth and commitment to our student veterans and their families,” Haynes said. “We take great pride in supporting those who have served our country, and the Epstein Family Veterans Center stands as an important home for the student veterans who have proudly served our country and sacrificed for the common good.”
The Epstein Family Foundation made a $1 million gift in support of the Veterans Center in 2017, the most significant gift in support of CSUSM’s student veterans since the donation of the center building in 2014. The Epsteins’ gift provided funds for the physical expansion of the existing Veterans Center while also providing an endowment to fund critical programs to support veterans and their families.
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Scripps Clinic Liberty Station opens in Point Loma
Scripps Health announced the opening of Scripps Clinic Liberty Station, giving the region’s leading health system its first outpatient health center in the Point Loma community of San Diego. Located at 2445 Truxtun Road, Suite 200, the new 5,582-square-foot site includes primary care and dermatology services along with some on-site radiology services.
Clinic hours run from 8 a.m. to 5 p.m. Monday through Friday.
The clinic, which sits between the Vons and Trader Joe’s grocery stores in the Liberty Station development and offers free parking, includes 10 exam rooms and two procedure rooms. Medical staffing includes family medicine specialist Samar Rashid, D.O., and dermatologist Reza Jacob, M.D.
“We are excited to bring easily accessible and convenient Scripps Clinic services to Point Loma, and we look forward to serving this vibrant community,” said Siu Ming Geary, M.D., Scripps Clinic vice president of primary care. “Scripps Clinic Liberty Station was designed with our patients in mind – to provide high-quality medical services close to where they live and work.”
Appointments can be made by calling 619-272-5200. Scripps accepts payment through most health insurance plans, and patients also can pay with a credit card, cash and check.
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‘Seadragons and Seahorses’
now open at Birch Aquarium
Birch Aquarium at Scripps Institution of Oceanography has Diego opened “Seadragons & Seahorses,” a new permanent exhibition that celebrates the care and conservation of these unique creatures.
Seadragons & Seahorses is the largest indoor aquarium addition since the aquarium’s opening in 1992 and is home to Weedy and Leafy Seadragons, as well as several species of seahorses and pipefish.
The centerpiece of the exhibition is one of the largest seadragon habitats in the world. The 18-foot-wide, 9-foot-tall exhibit holds 5,375 gallons of water — that’s equivalent to 70 bathtubs. More than being a stunning display, the habitat has been designed to create an ideal environment to breed seadragons. Birch Aquarium hopes to be the first aquarium to successfully breed Leafy Seadragons in captivity.
“People love ocean animals, especially seadragons and seahorses. We invite our guests to draw closer to these wondrous fish, to appreciate their amazing qualities and their value as part of our natural world,” said Nan Renner, the aquarium’s senior director of learning design and innovation.
Seadragons & Seahorses immerses aquarium guests into the underwater lives of seahorses and seadragons, while giving a peek into the work Birch Aquarium’s renowned Husbandry Team is doing to ensure that these species survive into the future.
