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Sixteen States, DOJ Join Whistle-Blower Lawsuits Alleging Wyeth Defrauded Medicaid Programs
The U.S. Department of Justice and 16 states have joined two whistle-blower lawsuits filed in federal District Court in Massachusetts alleging that Wyeth defrauded the government by not offering the same discounts on two medications to Medicaid that it offered to hospitals, the Wall Street Journal reports. The lawsuits were initiated following a grand-jury investigation by the U.S. Attorney"s Office in Massachusetts (Johnson, Wall Street Journal, 5/19). The other states included in the lawsuits are California, Delaware, Florida, Illinois, Indiana, Louisiana, New York, Michigan, Nevada, New Hampshire, Tennessee, Texas, Virginia, Wisconsin and the District of Columbia (Barrett, AP/Austin American-Statesman, 5/18).According to the lawsuits, Wyeth from 2000 to 2006 sold hospitals a bundled package called the Protonix Performance Agreement, which included its acid-reflux drugs Protonix Oral and Protonix IV. The suits allege that Wyeth gave hospitals up to a 94% discount for the oral version under the deal, with the understanding that when patients were released from hospitals they would be switched from the intravenous version of the drug to the oral version. According to the complaint, Wyeth hoped to gain an edge in a competitive market for acid-reflux pills by taking advantage of its standing as the only company offering an IV acid-reflux drug. The Journal reports that Wyeth charged hospitals $20 per vial for the IV version of Protonix and $3 for the oral version.Medicaid rules stipulate that the program is entitled to the lowest price on prescription drugs, and drugmakers are required to pay states rebates if they offer discounts to any other entities. The lawsuits state that Wyeth avoided paying hundreds of millions of dollars to state Medicaid programs because it did not offer the programs the same discounts or provide rebates (Wall Street Journal, 5/19).The lawsuits are seeking financial penalties against Wyeth of up to three times the amount lost by Medicaid. Assistant Attorney General Tony West said, "By offering massive discounts to hospitals, but then hiding that information from the Medicaid program, we believe Wyeth caused Medicaid programs throughout the country to pay much more for these drugs than they should have." Wyeth spokesperson Doug Petkus said that Wyeth "believes that its pricing calculations were correct and intends to defend itself vigorously in these actions" (AP/Austin American-Statesman, 5/18).
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NMC Statement: Misleading Information In Nursing Standard
This week Nursing Standard published some misleading and speculative information regarding the NMC"s registration fee. The story, titled "Registration fees could increase as regulator goes into black", also included factually inaccurate information about the NMC"s diversity data collection exercise which will soon be launched.
News of the day
University Of Maryland Dental School Helps Doctors, Nurses Halt Infant Tooth Decay
Across the state of Maryland, there are now doctors and nurses, freshly trained in pediatric dental health care, who can help stem an alarming number of 3-year-old children who arrive for their first dentist visit with teeth "just melting away."
Cardiovascular

Structure Of Antibiotic Ramoplanin Reveals Promising Mechanism

With the "last resort" antibiotic Vancomycin now plagued by the first signs of bacterial resistance, a scientific collaboration centered at Duke University has identified how a candidate successor antibiotic known as Ramoplanin A2 can kill pathogenic bacteria by interrupting how they form their cell membranes. During a 12-year quest, the research team had to learn how to crystallize Ramoplanin"s molecular structure at the crucial time and place that it interacts with the bacterium"s membrane. They had difficulty doing this with real bacterial membranes, so they had to devise a stand-in from a detergent molecule possessing membrane-like characteristics. "I am excited that we were able to solve the structure, which was not trivial," said Dewey McCafferty, a Duke professor of chemistry and biochemistry. "Now we have this really important picture of how Ramoplanin works as an antibiotic. Ramoplanin is important because it has the ability to kill certain bacteria resistant to front line antibiotics such as Vancomycin and Methicillin." "Knowing more about its molecular underpinnings is going to allow us to make changes to the antibiotic structure in order to improve its pharmacological properties." A report on the work, with McCafferty"s post-doctoral research associate James Hamburger as first author, will be published online this week in the Proceedings of the National Academy of Sciences. The research was funded by the National Institutes of Health. According to McCafferty, whose Duke group studies the chemistry of bacterial infections and resistance, Ramoplanin A2 is an experimental commercial version of an antibiotic first isolated from a soil bacterium in the 1980s and experimentally shown to work against problem pathogens such as Staphylococcus aureus, Enterococcus faecium, Staphylococcus epidermis and Clostridium difficile. It arrives at a time when Vancomycin, the antibiotic physicians rely on when others prove ineffective, is beginning to confront genetically resistant bacterial strains after three decades on the market. Despite its promise, various Ramoplanin preparations have not been well-tolerated in human trials due to poor absorption and limited toxicity. However, an oral preparation intended to treat Clostridium difficile, which causes serious and hard-to-combat intestinal infections, has recently been under clinical investigation. Progress has also been hampered by uncertainty about how Ramoplanin works on bacteria, a question McCafferty has been pursuing since 1997. Researchers knew that Ramoplanin interrupts the assembly of the bacterial cell wall, but did not know the molecular details. After overcoming the difficulties of depicting Ramoplanin"s interaction with the cell membrane, the researchers discovered that the molecule forms U-shaped structures that can bind to and capture a specific intermediate in membrane formation called Lipid II. Thus bound, the Lipid IIs can no longer participate in membrane formation. And because of this, bacteria with improperly formed cell walls die. Vancomycin also interrupts cell wall synthesis by capturing Lipid II, but in a different way and position in the molecular architecture, McCafferty said. The first antibiotic, penicillin, targets related enzymes called transpeptidases that stitch Lipid II molecules together into the mature cell wall. Bacteria routinely develop immunities to antibiotics by mutating into new versions that work around such structural Achilles" heels. For now at least, "Ramoplanin is not susceptible to the same mechanisms of resistance as Vancomycin, because it acts by a different molecular mechanism," McCafferty said. "A replacement for Vancomycin is urgently needed," he added. "Ramoplanin may offer additional help in the fight against drug-resistant bacterial infections." McCafferty"s Duke group is also studying the biosynthesis of Ramoplanin using genetic techniques in the hopes that these methods will be used to prepare alternative versions of Ramoplanin produced by fermentation. "The total chemical synthesis of Ramoplanin consists of almost 100 chemical steps," he said. "It is very, very difficult, and as such we hope to harness the potential of microbial engineering to produce Ramoplanin-like molecules with improved properties." The Duke researchers are also involved in efforts to understand the molecular mechanism of Ramoplanin resistance in the pathogen Staphylococcus aureus. Hamburger and Drexel University structural biologist Patrick Loll performed the crystallization and the detailed X-ray diffraction work required to solve the crystal structure. Other report authors besides McCafferty included Amanda Hoertz of Duke and Rachel Senturia of the University of Pennsylvania and Amy Lee of Drexel. Monte Basgall Duke University


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