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Morning Briefing

Summaries of health policy coverage from major news organizations

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Monday, Dec 23 2019

Full Issue

Johnson & Johnson's Court Victories Start To Stack Up As Jury Clears Company Of Responsibility For Woman's Cancer

The verdict is Johnson & Johnson's eighth trial victory in talc cases this year, its fourth win since October and its second triumph last week. The scorecard is a reversal of earlier cases where the company was getting battered. In other health industry and insurance news: J&J acquires remaining stake in Verb Surgical; Cigna partners with Prime Therapeutics; Mayo Clinic taps IT vet for digital business; and more.

Johnson & Johnson isn’t responsible for a Missouri woman’s cancer that she blamed on asbestos-tainted talc, a jury decided in the company’s latest win in the nationwide litigation over its iconic baby powder. Jurors in state court in St. Louis concluded Friday J&J’s talc-based product didn’t contribute to the development of Vickie Forrest’s ovarian cancer and didn’t fail to properly warn her about its health risks. Its the company’s first win in the St. Louis courts since last year. Jurors in that same court hit the world’s largest maker of health-care products with a $4.7 billion verdict for more than 20 women who said their use of asbestos-laced baby powder caused their cancers. (Feeley, 12/20)

Johnson & Johnson said on Friday it would acquire the remaining stake in Verb Surgical Inc, from Verily, Alphabet Inc's life sciences division. Bolstering its Ethicon unit, which makes surgical equipment, J&J in 2015 formed an independent company called Verb Surgical with Verily to create smaller, smarter and less costly robotic-assisted systems for surgery. (12/20)

Cigna Corp.'s Express Scripts and Prime Therapeutics solidified the terms of a three-year collaboration as the pharmacy benefit managers look to leverage the scale of the more than 100 million individuals that their clients cover. Express Scripts, the nation's largest PBM that merged with Cigna last year, said Thursday that it will offer retail pharmacy and drug manufacturer contract services to Prime, which is owned by 18 Blue Cross and Blue Shield plans that stand to benefit from Express Scripts' purchasing power. Prime said it will continue to supply full-service pharmacy benefit management offerings for its clients. (Kacik, 12/20)

The Mayo Clinic has named health-care technology veteran John Halamka as the head of its digital health-care businesses. One of his focus areas will be looking at how neural networks, machine learning and artificial intelligence can improve health care. Dr. Halamka, also a practicing emergency medicine physician, will be president of the Mayo Clinic Platform, a newly created position, when he joins on Jan. 1. The Mayo Clinic Platform is a strategic initiative to improve health care through insights and knowledge derived from data. It is a part of Mayo charged with developing clinical innovations and transforming health care. (McCormick, 12/23)

Baltimore-based insurer CareFirst Blue Cross and Blue Shield is entering the Medicaid managed-care market with acquisitions of two small Medicaid plans in Maryland and Washington, D.C. CareFirst said it reached separate agreements to buy Trusted Health Plan in D.C. and University of Maryland Health Partners in Baltimore. Health Partners is owned by the University of Maryland Medical System. Combined, the Medicaid managed-care organizations serve about 81,000 people. (Livingston, 12/20)

CareFirst BlueCross BlueShield said Friday it plans to acquire Medicaid plans in Maryland and Washington. The state’s largest health insurer will acquire University of Maryland Health Partners in Baltimore, health insurance plans for Medicare and Medicaid members run by the University of Maryland Medical System. The nonprofit also will acquire Trusted Health Plan in Washington, a Medicaid managed-care organization in Washington. (Mirabella, 12/20)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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