Thursday's health stories

Graham and Cassidy to debate Sanders on health care next week
Sens. Lindsey Graham and Bill Cassidy will face off against Sens. Bernie Sanders and Amy Klobuchar in a CNN town hall hosted by Jake Tapper and Dana Bash next Monday to debate the future of American health care.
Why it matters: It stands to play into the "socialism vs. federalism" binary choice on health care that Graham has been floating all week. NBC News' Frank Thorp tweeted that a Democratic source told him: "This is exactly the debate Graham and Cassidy want to have. Sanders is looking out for himself rather than being a team player."

Cardinal Health CEO collects $45 million but turns down bonus
George Barrett, CEO of drug distributor Cardinal Health, declined a $500,000 bonus after his company's rough year, in which profit fell "largely as a result of the challenging generic pharmaceutical pricing environment," according to a Securities and Exchange Commission filing put out on Thursday. Lower generic drug prices are positive for consumers, but not for the companies that deliver them and get a cut of the price.
Yes, but: Barrett still made almost $45 million, after calculating vested stock.
Go deeper: The sky-high pay of health care CEOs warps incentives to reduce spending.

Amazon reportedly talking to pharmacy benefit managers
Amazon may be talking with some middle-market pharmacy benefit managers "in an effort to get into various contract arrangements," according to analysts at investment bank Leerink Partners who spoke with pharmacy executives. Amazon may pursue a mail-order pharmacy that initially targets uninsured customers or people who have high deductibles and pay cash for most of their prescription drugs.
Reality check: The country is still a long way from Amazon handling people's prescriptions, if that time even comes. But conversations with prescription drug middlemen make it appear "that this is the direction Amazon is moving in," Leerink said in a report. Pharmacy executives who spoke with Leerink said it would take at least 18 to 24 months for Amazon to get proper drug licenses in 50 states. Amazon didn't immediately respond.

Pfizer sues Johnson & Johnson, says it blocked new drug
Pfizer is suing Johnson & Johnson, alleging Johnson & Johnson crafted exclusive contracts with health insurers and health care providers to keep its autoimmune drug Remicade as a sole treatment option even though Pfizer came out with a cheaper biosimilar version, called Inflectra, this past November. The lawsuit says "consumers suffer in the form of artificially inflated prices."
Why it matters: When blockbuster drugs like Remicade lose patent protection or face competition from cheaper alternatives, drug companies face the prospect of losing billions of dollars in sales. This lawsuit between two of the largest U.S.-based pharmaceutical firms is yet another example of the extent companies will go to litigate or protect lucrative drugs.



