Sunday, July 26, 2020

The 2018 NCD on Next Generation Sequencing: Too Little, Too Late?


      The Standard of Care for Cancer Should be Somatic Sequencing at Diagnosis


Because the Standard of Care Should be Better

by John J. Otrompke, JD 


               Within five years, tumor sequencing at the time of a patient’s cancer diagnosis will be the standard of care, according to a number of speakers at several 2020 oncology conferences, including ASCO, BIO and Cancer Progress.

                Both somatic and germline sequencing already form an important part of cancer care, but too often cancer patients do not receive targeted therapies until they have failed on other drugs, at which point it might be too late. (Somatic sequencing is the sequencing of cells from a tumor, while germline sequencing applies to a patient’s normal DNA).

In 2018, a National Coverage Determination (NCD) from CMS provided coverage from federal health payors for somatic sequencing, but it was only conclusive for patients in the late stages of cancer. (Another NCD from January 2020 applied to germline sequencing for breast and ovarian cancer genes).

                But it is important to do sequencing at the time of a patient’s initial diagnosis, so that patients can receive targeted therapies up-front; oncologists hope that up-front treatment with the new therapies will reduce acquired tumor resistance, and substantially improve patients’ results.

                When a patient has experienced an adverse medical result, they can sometimes file suit against their provider, alleging that the provider was less careful than a reasonable provider would have been (in other words, that the provider’s treatment in the case fell below the standard of care). Medical malpractice cases are usually governed by state law, but in some states, it’s possible that triers of fact could consider a federal regulation like a NCD in deciding whether the conduct of an oncologist was reasonable. Under the circumstances forecasted above, a few years from now, the failure to sequence a patient’s tumor at diagnosis could render a provider liable for professional negligence.

“Somatic sequencing at the time of cancer diagnosis will be declared the standard of care within two years. We see alterations in all solid tumors that mandate molecular profiling in everybody,” said  Ezra Cohen, MD, professor of medicine at University of California at San Diego.

“I would consider it the standard of care now for a few cancers, such as acute leukemias and myelodysplastic syndromes,” added Cohen, who participated in a June 10 session called ‘What Was Hot at ASCO?’ at the virtual BIO 2020 conference.

Time for a Scientific Reimbursement Policy

“We have targeted therapies against several low-frequency alterations that occur, such as NTRK fusions which occur in up to 3% of lung cancer cases. The response rates to those therapies are 80% and higher, so not detecting those rare alterations would have a substantial negative effect on the patient,” added Cohen.

“It would be malpractice for a patient to come in with suspected cancer and for us not to have the pathologist look at the tissue and make a diagnosis.  At some point, not doing the fundamental diagnosis to understand cancer would not be acceptable,” explained Razelle Kurzrock, MD, professor of medicine at UCSD.

                But notwithstanding the new drugs like entrectinib, larotrectinib and pembrolizumab, which enjoy tissue-agnostic approval from the FDA under certain circumstances, the importance of early somatic sequencing has not caught on yet in some quarters.

“I’m guessing that the majority of cancer patients in the country are still not sequenced,” said Kurzrock, who is also co-author of articles such as “Challenging Standard-of-Care Paradigms in the Precision Oncology Era,” Subbiah V and Kurzrock R (Trends Cancer. 2018 February ; 4(2): 101–109) (“Between 2003 and 2013, new cancer drugs approved by the European Medicines Agency (EMA) or the Food and Drug Administration (FDA) produced a total mean improvement in overall survival of only 3.4 months relative to the treatments that were available in 2003”).

The recent FDA approval of pembrolizumab for patients with tumor mutational burden high is a case in point. “For all intents and purposes, that approval on June 16 requires sequencing, but the approval is for patients who have failed standard therapy. It’s not going to be a rationale for sequencing up front,” added Kurzrock, who noted that the FDA often approves drugs based on studies done in patients who had already failed other therapies.

“If we’re going to use targeted therapies, we have to learn the lesson of chronic myeloid leukemia (CML), and treat at diagnosis. If you wait two or three years to use therapies we know work on CML, the treatments that give you a 100% response rate and normal life expectancy will encounter much more resistance, and you might get a life expectancy of a year,” explained Kurzrock. “Acquired tumor resistance always happens when you let the cancer evolve.”



Tuesday, May 5, 2020

Three Speech / Article Ideas I've Been Working Up for the Health Care Industry

Please contact me at John_Otrompke@yahoo.com if you would like me to address your organization or its Board of Directors regarding any of these topics, or if you would like me to write an article or white paper.

I have been researching the national coverage decision from CMS regarding next generation sequencing. I had been chatting with the folks from the Personalized Medicine Coalition, and trying to learn what it would take to get more uniform reimbursement for laboratory-designed tests for cancers other than breast and ovarian cancer. Another interesting thing about this area is that the FDA has been asking some companies for proof that these molecular assays work! If widespread, this could a significant departure from the agency's historical exercise of regulatory discretion for these tools.

I also had been researching an article on insulins, inflation, biosimilars and immunogenicity. Will the FDA's pathway switch for insulins and other biosimilars be enough to encourage companies to file applications for insulin biosimilars? What about the relaxation of the requirement for data about immunogenicity, as expressed in the FDA's recent proposed guidance? Will that be enough?

Somewhat related to the insulin question is a topic involving organ transplants. Before the quarantine, the Trump administration recently announced a couple of changes that had the advocates in kidney disease organizations cheering. The first is a change that would allow reimbursement of certain costs experienced by living organ donors, such as foregone wages, and costs for child care and elder care during a period of donor hospitalization. The second rule proposed certain alterations to federally-certified organ procurement organizations. The changes seem intended to encourage more competition by these organizations. I'm not 100% sure that's the right approach; do we really want hospitals to harass patients on their death beds, with the goal of convincing them to give up their kidneys upon death? Another part of the rule seems to encourage organizations to make greater use of organs, even if they aren't in perfect shape. But do we really want to take that decision away from doctors?

Sunday, March 22, 2020

The FTC Issues Warning Letters to Social Media Influencers During Notice-and-Comment Period for Proposed Endorsement Regulation

Regulations compelling speech sometimes give rise to interesting First Amendment issues. 


                On March 6, the Federal Trade Commission (FTC) announced that it had issued warning letter to social media “influencers” for endorsing products from Teami, without adequately disclosing that they enjoyed a material benefit from the company. The company had claimed various health benefits flowed from the tea.

                Although such endorsements constitute private (WC?) speech, the FTC has claimed to regulate the activity since 1980 under “The Guides Concerning the Use of Endorsements and Testimonials in Advertising.” The “Guides” were first “enacted” in 1980, and amended in 2009.

                Regulations compelling speech sometimes give rise to interesting First Amendment issues. Additionally, Supreme Court cases like Expressions Hair Design v Schneiderman and Reed v Town of Gilbert have sometimes been read as suggesting the Supreme Court might start treating all forms of protected speech the same.

                On February 21 of this year, the agency sought comment on yet further proposed changes to “The Guides.” The notice-and-comment period is to end on April 21, 2020. Would you or your group like help in submitting a comment?

Merger of Pennsylvania Inpatient Hospital Services Providers Faces Antitrust Challenge by Government


                The FTC announced late last month that it and the state of Pennsylvania had objected to the merger of Jefferson Health and The Albert Einstein Healthcare Network on the grounds that if consummated, the deal would reduce competition. The agency said that the merger would leave the combined system controlling 60% of the inpatient general acute care hospital services market in and around North Philadelphia, and at least 45% of that market in and around Montgomery County, according to a complaint the agency planned to file in federal court.

Wednesday, March 4, 2020

CMS Warns of Incorrect Billing for Trastuzumab


Also, Long Term Hospital Adjustment to be Implemented this Summer


CMS announced last weekend that government auditors, upon reviewing claims data for Trastuzumab (Herceptin) for the last several years, found “numerous instances” of incorrect billing for multi-use vials in cases in which some of the medication was wasted.

The agency stated, “Multi-use vials are not subject to payment for discarded amounts of drug or biological,” and referred providers to Chapter 17, Section 40 of the Medicare Claims Processing Manual.

The Institute for Clinical and Economic Review announced last July that the breast cancer drug, trastuzumab deruxtecan, may be the subject of an ICER review this year.

CMS also announced that the Long Term Care Hospital (LTCH) Discharge Payment Percentage (DPP) Payment Adjustment will be “implemented” on July 6.

Tuesday, February 18, 2020

CMS Seeks Comments on How to Improve Rural Maternal Healthcare

The deadline for comments is April 12

On February 12, CMS released a request for information "to learn about opportunities to improve access, quality, and outcomes for women in rural communities before, during and after pregnancy."

Would your agency like to submit a comment?

https://ruralmaternalrfi.org/wp-content/uploads/2020/02/Rural-Maternal-RFI.pdf




Thursday, January 16, 2020

Proposed Vertical Merger Guidance Relevant to Drug Companies

Antitrust Thinking May Be of Relevance to Small Pharma and Biosimilar Companies 

Would Your Company Like to Submit a Comment?

A proposed antitrust guidance from the DOJ and the FTC may warrant the scrutiny of drug companies and personalized medicine developers.

The draft guidance, "Draft Vertical Merger Guidelines," released on January 10, contains a passage  that may be of unique importance to medicines companies. The passage describes a scenario is which one company is the "sole supplier" of an active ingredient needed for another company to make a drug (see below). Such a scenario may arise in the context of biosimilar manufacturing, among other examples.

"Example 5: Company A is the sole supplier of an active ingredient (the related product) for a pharmaceutical drug made by Company B (the relevant market). Company C is considering entering the relevant market. If Company B buys Company A, the merged firm may find it profitable to refuse to supply the ingredient to any rivals or potential rivals if doing so would deter Company C from entering, or prevent it from financing entry, by requiring it to start producing both the active ingredient and the drug at the same time (two stage entry). If refusing to supply entrants was profitable for the merged firm, and if the likely result was that competition in the relevant market would be substantially lessened compared to the level that would have obtained absent the merger, the merger potentially raises significant concerns and may warrant scrutiny."  

The draft contains numerous other examples of the government's thinking on federal antitrust law.

Comments on the document must be received by February 11.