Good morning, everyone, and welcome to another working week. We hope the weekend respite was relaxing and invigorating, because that oh-so familiar routine of deadlines, online meetings and phone calls has predictably returned. But what can you do? The world, such as it is, continues to spin. So time to give it a nudge in a better direction by brewing cups of stimulation. Our choice today is maple bourbon, a double shot for the needy neurons. Meanwhile, here are a few items of interest to start you on your journey, which we hope is meaningful and productive. Best of luck and do keep in touch…
A major hedge-fund investor will meet top CVS Health executives today to propose ways the struggling health care company can improve its operations, the potential start of an activist stance by the fund, The Wall Street Journal reports. The slated meeting, between CVS and hedge fund Glenview Capital Management, comes amid signs investors are turning restless with a company that remains among the best-recognized in the healthcare industry but has seen its stock tumble 24% this year to date. Larry Robbins, founder of health care-focused Glenview, has established a large position in CVS and is expected to meet with CVS chief executive officer Karen Lynch and others to present ways to energize the company, but not to push for a break up.
The U.S. Health Resources and Services Administration sent a final warning letter to Johnson & Johnson urging the company to inform the agency by today that it would halt its plan to alter payment methods for some hospitals that participate in the 340B drug discount program. J&J recently disclosed plans to issue rebates for two widely prescribed medicines starting Oct. 15 instead of offering discounted prices, but the HRSA warned the move would violate federal law. HRSA argued the planned move is unlawful because it would require the hospitals to purchase the medicines at prices exceeding what the discount program permits. The agency also insisted the move requires approval by the U.S. Department of Health and Human Services, which oversees the agency. As a result, the HRSA warned J&J that its contract with HHS to participate in the 340B program could be terminated and that the company faces penalties that would cost $7,000 for each violation.
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