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January 14, 2020

Around the nation: 23andMe licenses first drug compound to Spanish drugmaker

Daily Briefing

    The compound is designed to treat autoimmune and inflammatory conditions, in today's bite-sized hospital and health industry news from California, New York, and Oklahoma.

    • California: Genetic-testing company 23andMe has sold the Spanish drugmaker Alimirall the rights to an antibody 23andMe developed using data from its DNA tests. The antibody is designed to treat autoimmune and inflammatory conditions, including Crohn's disease and lupus. 23andMe tested the antibody in animals, but not humans. Emily Drabant Conley, 23andMe VP of business development, told Bloomberg the company might eventually conduct its own clinical trials instead of licensing compounds to other companies (Anderson, Becker's Hospital Review, 1/10; Brown, Bloomberg, 1/9).
    • New York: Gov. Andrew Cuomo (D) in his State of the State address last week vowed to "restructure" the state's Medicaid program and make local governments responsible for their share of costs. Cuomo said local governments would be responsible for $4 billion in Medicaid costs. He noted requiring New York City to cover the city's share of medical cost increases could save the state $2 billion. However, Cuomo did not provide details on his proposal (Bredderman, Modern Healthcare, 1/9).
    • Oklahoma: Endo Pharmaceuticals has agreed to pay about $8.8 million to settle allegations that the company's marketing of opioids played in a role in Oklahoma's opioid epidemic. Endo and its parent company Endo International said the settlement resolves Oklahoma's investigation into the drugmaker and its affiliates. The settlement does not include admission of fault, liability, or wrongdoing, Endo said. Under the settlement, Endo will not employ or contract sales representatives, speakers, and opinion leaders to promote opioids in Oklahoma. Oklahoma Attorney General Mike Hunter's (R) office said the majority of the settlement will go into an Opioid Lawsuit Settlement Fund (Chin, Wall Street Journal, 1/10).

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