- CVS is buying the pharmacy benefits provider Omnicare in a deal valued estimated at $12.7 billion. The move is aimed at expanding its research into assisted-living and senior-care facilities. The planned deal comes at a good time for Omnicare. The Cincinnati-based company reported net sales of $1.7 billion in the quarter ended March 31, a 5.7% increase over the previous year’s quarter. CVS Health Corp saw an 18.2% increase in revenue of its pharmacy service segment during the three months ended March 31, 2015. The planned deal is expected to close near the end of 2015.
- The 2nd U.S. Circuit Court of Appeals granted a preliminary injunction forcing Actavis to keep selling Namenda IR, an Alzheimer’s drug taken twice a day. Actavis had planned to pull the drug and replace it with Namenda XR, which is taken once a day. The state of New York alleged the move was meant to stifle competition from generics in violation of antitrust laws. By the time generic versions of the old drug were expected to become available in July, doctors and patients wouldn’t want to switch to them because of the convenience of taking the drug once, not twice a day, New York alleged.
- Federal investigators say the current process to review and recommend how Medicare pays doctors leaves it susceptible to inaccurate reporting and conflicts of interests. A report released by the Government Accountability Office found that the recommendation process “relies on the input of physicians who may have potential conflicts of interest with respect to the outcomes of CMS’ process.” The office also says the data—compiled by annually surveying physicians to provide updates on existing procedures and to introduce new ones—were weak. They are concerned the result could be inaccurate Medicare payment rates.
CVS to buy pharmacy benefits provider Omnicare for $12.7 billion, and other news
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