Showing posts with label Cardinal Health. Show all posts
Showing posts with label Cardinal Health. Show all posts

Tuesday, October 17, 2017

Ex-DEA Agent Blasts Congress And Drug Industry For Creating The Opioid Crisis

Authored by Mac Slavo via SHTFplan.com,


Whistleblower Joe Rannazzisi is telling all when it comes to placing blame for the nation’s opioid crisis. He says drug distributors pumped opioids into communities in the United States knowing that people were dying and that the US government is helping.



Joe Rannazzisi is a tough and blunt former DEA (Drug Enforcement Administration) deputy assistant administrator with a law degree, a pharmacy degree, and a growing rage at the unrelenting death toll from opioids. Congress has often been complicit in atrocities, especially when a politician profits off of the removal of the rights of others. So it should not come as a surprise that Rannazzisi is blaming Congress and the drug industry for the opioid epidemic gripping the nation.


Rannazzisi ran the DEA’s Office of Diversion Control, the division that regulates and investigates the pharmaceutical industry. Now in a joint investigation by 60 Minutes and The Washington Post, Rannazzisi tells the inside story of how, he says, the opioid crisis was allowed to spread. Its quick spread was also aided by Congress, lobbyists, and a drug distribution industry that shipped, almost unchecked, hundreds of millions of pills to rogue pharmacies and pain clinics providing the rocket fuel for a crisis that, over the last two decades, has claimed 200,000 lives.


The DEA responded to the explosive report that the government is helping keep Americans addicted to opioids so that pharmaceutical companies can continue to boast big profits. The DEA says it has taken actions against far fewer opioid distributors under a new law. A Justice Department memo shows 65 doctors, pharmacies, and drug companies received suspension orders in 2011. Only six of them have gotten them this year.





“During the past seven years, we have removed approximately 900 registrations annually, preventing reckless doctors and rogue businesses from making an already troubling problem worse,” the DEA said in a written statement.



“Increasingly, our investigators initiated more than 10,000 cases and averaged more than 2,000 arrests per year.”




But Rannazzisi says this is an industry that is out of control and the DEA isn’t making a dent in this crisis.





“What they [big pharma] wanna do, is do what they wanna do, and not worry about what the law is. And if they don’t follow the law in drug supply, people die. That’s just it. People die.”



The harsh reality is that the burgeoning issue of the opioid epidemic is lining the pockets of the pharmaceutical industry and the politicians who help fuel it, so there’s no real rush to stem the bleeding of this crisis.





“This is an industry that allowed millions and millions of drugs to go into bad pharmacies and doctors’ offices, that distributed them out to people who had no legitimate need for those drugs,” Rannazzisi said.



Most of his anger is reserved for the distributors of opioid drugs. Some of them are actually multibillion-dollar, Fortune 500 companies. They are the middlemen that ship the pain pills from manufacturers, like Purdue Pharma and Johnson & Johnson to drug stores all over the country. Rannazzisi accuses the distributors of fueling the opioid epidemic by turning a blind eye to pain pills being diverted to illicit use.





“This is an industry that allowed millions and millions of drugs to go into bad pharmacies and doctors’ offices, that distributed them out to people who had no legitimate need for those drugs,” Rannazzisi said.



“The three largest distributors are Cardinal Health, McKesson, and AmerisourceBergen. They control probably 85 or 90 percent of the drugs going downstream,” he added when prompted.



Rannazzisi said it’s a “fact” that the big pharmaceutical companies knew they were pumping drugs into people unnecessarily for profits and that people were dying.


In the late 1990s, opioids like oxycodone and hydrocodone became a routine medical treatment for chronic pain. Drug companies assured doctors and congressional investigators that the pain medications were effective and safe. With many doctors convinced the drugs posed few risks, prescriptions skyrocketed and so did addiction.


Big pharma had a plan. It was solely a business plan. Their plan was to sell a lotta pills and make a lot of money. And they did both of those very well.

Tuesday, April 18, 2017

Cardinal Health, Peers Tumble As Lower Generic Drug Prices Hurt Industry Outlook

Cardinal Health tumbled the most in almost six months after the healthcare product distributor warned its outlook would be toward the lower end of its forecast range for this year and gave initial fiscal 2018 guidance that missed analyst estimates.


The company is grappling with lower prices for generic medicines, a trend that several sellside analysts warned is likely to also hit competitors McKesson and AmerisourceBergen. After the poor guidance, CAH fell as much as 12%, most since Oct. 28; Comps ABC and MCK were down as much as 6.2% and 5.7%, respectively. Prior to today, CAH was up 14% YTD vs S&P 500 Health Care Index up 7.6%; ABC had gained 11%, MCK was up 2.7%.



Additional CAH announced today it would acquire the patient care, deep vein thrombosis and nutritional insufficiency businesses of Medtronic for $6.1 billion in cash. The deal would give Cardinal Health access to 23 product categories that “are used in nearly every U.S. hospital,” the company said. The divisions have more than 10,000 employees and generated $2.3 billion in revenue in the 12 months ended in October, with more than 70 percent of sales in the United States.


Here is a brief summary of Wall Street"s responses courtesy of Bloomberg:


Mizuho (Ann Hynes)


  • Weaker forecast raises concerns for drug distributors; expects generic deflation also will be headwind for MCK and ABC heading into their earnings

  • CAH sees FY18 EPS growth flat to down mid-single digits, implies range of $5.03-$5.35; at the midpoint, that’s 12% below average analyst ests. and includes 21c of gains from purchase of MDT businesses

  • Says CAH-MDT deal was largely expected

  • Rates CAH neutral, PT $79

Baird (Eric Coldwell)


  • CAH trimmed FY17 forecast for third consecutive quarter as generic deflation now seen down low-double digits vs previously down high-single digits

  • Initial FY18 outlook is ~18% below Street on apples-to- apples basis excluding gains from purchase of Medtronic businesses

  • Neutral, PT $80

Evercore ISI (Ross Muken)


  • Initial FY18 outlook is major surprise, says shame that solid MDT deal is being completely overshadowed by guidance

  • Modestly more confident about CAH conf. call; appears that majority of revisions in generic deflation expectations is due to handful of highly profitable products

  • While slope of decline doesn’t seem to have gotten worse, recovery will probably take much longer than projected when CAH was upgraded to outperform on April 6

  • Outperform, cuts PT to $77.50 from $91.50

Cowen (Charles Rhyee)


  • Near-term challenges to pharma segment remain as fewer branded drugs go generic

  • CAH’s outlook for FY18 generic deflation to improve y/y suggests macro environment is starting to stabilize but will take longer than expected

  • Market perform, PT $89

Leerink (David Larsen)


  • CAH cited generic pricing and sell-side pressure for EPS views missing expectations for FY18 and FY19

  • CAH facing other challenges including loss of Prime Therapeutics as a client; Leerink believes this deal was won by ABC, says shares could rally if co. meets earnings ests. this quarter

  • Incrementally more cautious on MCK

  • Rates CAH market perform, ABC outperform, MCK market perform

Source: Bloomberg