GlaxoSmithKline Plc agreed to pay San Francisco based biotech Alector Inc. as much as $2.2 billion to develop therapies targeting diseases such as Parkinson’s and Alzheimer’s.

Neurodegenerative disease has been the subject of costly workers’ compensation claims in past years. The most notable of them was the NFL and contact sport related claims for concussion caused dementia.

The agreement comes weeks after the FDA approved the first new Alzheimer’s drug in almost two decades, Biogen Inc’s Aduhelm, reinvigorating the industry’s efforts to develop more treatments in a challenging therapy category.

The trategic global collaboration was formed for the development of two clinical-stage, potential first-in-class monoclonal antibodies (AL001 and AL101), which are targeting neurodegenerative disease.

AL001 is currently in a Phase 2 study in symptomatic frontotemporal dementia patients with a mutation in the C9orf72 gene and is planned to enter Phase 2 development for amyotrophic lateral sclerosis (ALS) in the second half of 2021.

Enrolment is currently underway for a pivotal Phase 3 trial for AL001 in people at risk for or with frontotemporal dementia due to a progranulin gene mutation (FTD-GRN).

AL101 is in a Phase 1a clinical trial and is designed to treat patients suffering from more prevalent neurodegenerative diseases, including Parkinson’s disease and Alzheimer’s disease.

Frontotemporal dementia is a rapidly progressing and severe form of dementia found most frequently in people less than 65 years old at the time of diagnosis. It affects 50,000 to 60,000 people in the United States and roughly 110,000 in the European Union, with potentially higher prevalence in Asia and Latin America.

There are currently no FDA-approved treatment options for frontotemporal dementia.

The therapies are part of an emerging field of research that tries to use the body’s own immune system to fight neurodegenerative diseases. In this case, scientists are seeking to increase levels of a protein in the brain called progranulin, which helps regulate the immune response and affects the survival of neurons.

Under the terms of the collaboration agreement, Alector will receive $700 million in upfront payments. In addition, Alector will be eligible to receive up to an additional $1.5 billion in clinical development, regulatory and commercial launch-related milestone payments.

Alector will lead the global clinical development of AL001 and AL101 through Phase 2 proof-of-concept. Thereafter, Alector and GSK will share development responsibilities for all late-stage clinical studies for AL001 and AL101 and all costs for global development will be divided between the two companies.

A federal jury has found four Los Angeles-area residents guilty of criminal charges for scheming to submit fraudulent loan applications seeking millions of dollars in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) COVID-19 relief funds.

At the conclusion of an eight-day trial, the following defendants were found guilty on June 25:

– – Richard Ayvazyan, 42, of Encino;
– – Richard Ayvazyan’s wife, Marietta Terabelian, 37, of Encino;
– – Richard Ayvazyan’s brother, Artur Ayvazyan, 41, of Encino;
– – Vahe Dadyan, 41, of Glendale.

All four defendants were found guilty of one count of conspiracy to commit bank fraud and wire fraud, 11 counts of wire fraud, eight counts of bank fraud and one count of conspiracy to commit money laundering. Richard Ayvazyan also was found guilty of two counts of aggravated identity theft. Artur Ayvazyan also was found guilty of one count of aggravated identity theft. Vahe Dadyan also was found guilty of one count of money laundering.

The jury also found the defendants must forfeit bank accounts, jewelry, watches, gold coins, three residential properties and approximately $450,000 in cash.

The defendants used fake, stolen and synthetic identities to submit fraudulent applications for PPP and EIDL loans guaranteed by the Small Business Administration (SBA) under federal law.  In support of the fraudulent applications, the defendants often submitted false and fictitious documents to lenders and the SBA, including fake identity documents, tax documents and payroll records.

A September 13 sentencing hearing has been scheduled, and each defendant will face decades in federal prison.

Prior to the verdict, the following defendants pleaded guilty to criminal charges in this case:

– – Manuk Grigoryan, 46, of Sun Valley, pleaded guilty on June 7 to one count of bank fraud and one count of aggravated identity theft. Judge Wilson has scheduled a September 13 sentencing hearing, at which time Grigoryan will face a statutory maximum sentence of 32 years in federal prison.
– – Edvard Paronyan, 40, of Granada Hills, pleaded guilty on June 11 to one count of wire fraud. He will face a statutory maximum sentence of 20 years in federal prison at his August 30 sentencing hearing.
– – Tamara Dadyan, 39, of Encino, Artur Ayvazyan’s wife and Vahe Dadyan’s cousin, pleaded guilty on June 14 to one count of conspiracy to commit bank fraud and wire fraud, one count of aggravated identity theft and one count of conspiracy to commit money laundering. She will face up to 52 years in federal prison at her September 27 sentencing hearing.
– – Arman Hayrapetyan, 41, of Glendale, pleaded guilty on June 21, to one count of conspiracy to commit money laundering. He will face up to 20 years in federal prison at his sentencing hearing, which is scheduled for September 20.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud.

The focus of the WCIRB Actuarial Committee meeting held on June 22, was a review of recent system medical costs, along with a comparison of the effects of the COVID 19 pandemic.

Summary of the Medical Severity Trends through 2020

Pre-COVID-19 (before 3/15)

– Overall medical severity per claim increased slightly (+4%)
– Physician services, inpatient and medical-legal costs per claim increased despite a downward trend in prior years
– Pharmaceutical costs per claim continued to drop (-14%) mostly driven by continuously steep declines in opioid costs (-42%)
– Telemedicine services per claim increased at typical pre-COVID-19 rate (approximately 100%)

COVID-19 pandemic period (3/15 – 12/31)

– Overall medical severity per claim increased (+10%)
– – Increases in both service utilization and paid per transaction likely when shelter-in-place orders were lifted
– Increases in inpatient and outpatient costs per claim were driven mostly by higher paid per transaction
– Pharmaceutical costs per claim increased (+14%) mostly driven by increased use of non-opioids
– Telemedicine services per claim increased by more than 50-fold

Legislative Cost Monitoring Update – SB 1160 UR Provisions

– During the two years after the SB 1160 UR provisions became effective:
– – Number of physical therapy visits per claim increased in the first 30 days, while utilization of other types of medical services decreased during the same period.
– – Physical therapy services were provided earlier. The median time from injury to first physical therapy in the first 30 days decreased by 17%, from 12 days for AY2017 claims to 10 days for AY2019 claims.
– – There was less utilization of physical therapy services 5 months after the first 30 days.
– There is no indication of the SB 1160 UR provisions significantly impacting the cost of medical services through 6 months from the date of injury, and the increased medical severity is driven mostly by fee schedule updates.
– There is no indication of the UR provisions significantly impacting utilization review costs within two years of the reform implementation.

Summary of 3/31/2021 Experience (Excluding COVID-19)

– Almost 100% of market included – Main insights:
– – Loss development generally flat
– – Claim settlement rates continuing to decline
– – 1Q 2021 non-COVID-19 claim frequency up over 1Q 2020
– – Significant number of COVID-19 claims reported in first three months of 2021
– Projection methodologies are consistent with 9/1/21 Filing
– Projected loss ratio for September 1, 2021 to August 31, 2022 policies is 0.596 (same as 9/1/21 Filing)
– – Small increase (<0.005) from updated wage forecast
– – Small decrease (<0.005) from updated 2020 frequency trend

As part of the Becker’s Hospital Review 11th Annual Meeting, Travis Bias, DO, Medical Director of Clinician Solutions for event sponsor 3M Healthcare Information Systems (3M HIS), shared industry insights and expertise with hospital leaders during a May 17 roundtable.

Physicians spend significant time performing nonpatient-facing tasks like documentation, that are necessary but ultimately take time away from one-to-one patient care.

Technology solutions powered by artificial intelligence can reduce the amount of time spent away from the patient, vastly improving both their experience, and the physician’s.

Five key takeaways:

1. The multiple demands on physicians can fracture their time and attention. Physicians are asked to do more than just provide patient care; they are tasked with capturing the clinical complexity of their patient population. Although the time spent on additional tasks can improve the overall efficiency and efficacy of the health system, it adds to the workload and stress of the physician. “We know the demands pulling the physicians in different directions are great,” Dr. Bias said. “Because of that, we have to be really clear about how their time is prioritized.”

2. Reducing unnecessary technology interruptions improves the patient and physician experience. Interruptions, especially those requiring task switching, can be extremely disruptive. Digital tools like the solutions offered by 3M HIS significantly decrease those interruptions by unifying and/or automating workflows. This frees up time for the physicians to focus on patient care.

3. Physician buy-in is critical for successful healthcare technology solutions. In order for a technology solution to make a meaningful difference, physicians need to be willing to use the solution. While executive leadership is a key factor in encouraging use, clinicians are most likely to use tools if they understand how they will benefit their jobs, and if the solutions are easy and efficient to use.

4. The pandemic may have removed the technology trust barrier. Healthcare providers and patients alike were forced to make a quick shift from in-person visits to telehealth visits. The successful and speedy adoption of telemedicine could prove beneficial for other technologies, removing any reservations or barriers commonly seen as healthcare systems roll out new solutions.

5. Digital transformation enables healthcare providers to improve delivery of care. Whether it’s tracking the patient journey throughout the health system, visiting patients through telemedicine or remote patient monitoring through wearable technology, digital solutions can improve the patient and physician experience. Digital transformation can meet patients where they are, identify gaps in care and improve the overall quality of care, benefiting the patient, the physician and the bottom line.