• California: Last month, seven members of 23andMe's independent board of directors resigned in response to CEO Anne Wojcicki's efforts to take the company private. Wojcicki is currently the only remaining member of the board. According to Axios, 23andMe went public in 2021 with a valuation of $3.1 billion. However, the company's shares have fallen by more than 95% since then, reaching just 34 cents in mid-September. Although Wojcicki offered to take the company private in July, the company's special committee rejected the offer because it didn't include a share price premium. "While we continue to wholeheartedly support the company's mission and believe deeply in the value of the personalized health and wellness offering that you have articulated, it is also clear that we differ on the strategic direction for the company going forward," the board members wrote. "Because of that difference and because of your concentrated voting power, we believe that it is in the best interests of the company's shareholders that we resign." (Primack, Axios, 9/18)
• New Jersey: J&J has dropped its controversial plan to change 340B payment methods for two of its drugs for some hospitals after pushback from the federal government. In August, J&J announced that it would change its pricing model for Stelara and Xarelto. Instead of receiving upfront discounts, disproportionate share hospitals would have to pay full price for the drugs and then later apply for a rebate. The plan quickly received criticism from healthcare organizations, such as the American Hospital Association and America's Essential Hospitals, as well as the federal government. Last week, the Health Resources and Services Administration sent a letter to J&J threatening to sanction the company if it continued with its 340B rebate plan. On Monday, J&J rolled back its plan to alter 340B pricing, saying in a statement that it had "no choice but to forgo implementation." However, the company continues to stand by its initial plan, saying that a rebate strategy could improve the 340B program. (DeSilva, Modern Healthcare, 9/30; Muoio, Fierce Healthcare, 9/30)
• New York: Particle Health has filed an antitrust lawsuit against EHR vendor Epic Systems, alleging that the company used its control of patient data to undermine Particle's business. In the lawsuit, which was filed in federal court in the South District of New York, Particle said that Epic has become a "behemoth" and a "monopolist in the EHR software market." According to STAT+, the lawsuit seeks a finding that Epic violated the Sherman Act, as well as monetary damages and injunctive relief that would compel Epic to stop its anticompetitive practices. In a statement, Epic said the lawsuit was "baseless" and that Particle had improperly disclosed patient information on the health information exchange Carequality, which had led to a dispute between the two companies earlier this year. "This lawsuit attempts to divert attention from the real issue: Particle's unlawful actions on the Carequality health information exchange network violated HIPAA privacy regulations," Epic said. "Particle's complaint mischaracterizes Carequality's decision, which in fact proposes banning Particle customers that were accessing patient data for impermissible purposes." (Ross, STAT+ [subscription required], 9/23)

Learn how the 340B drug pricing program helps reduce costs for providers serving low-income populations.