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Good morning. Elizabeth Cooney here, filling in for Ed Silverman today. Coffee is brewed, news is being made, and we’re ready for another working week. Let’s get to it.

Compounding companies like Athenex (ATNX) and Imprimis Pharmaceuticals (IMMY) are emerging to meet demand for lower-priced medicines by custom-making drugs, the Wall Street Journal says. That’s sparking legal challenges from such traditional pharmaceutical companies as Allergan (AGN) and Endo Pharmaceuticals (ENDP) and pushback from federal health regulators. “If people start taking compounded drugs because of cost, instead of a generic or new drug, that would undermine the premarket approval system,” said Julie Dohm, the FDA senior science adviser for compounding.

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  • I hope this undermines their entire price fixing scenario and forces them into fair pricing (and getting rid of evil pbms). We need true competition and transparency in drug prices. If a compounder can do it safely and cheaper, then it’s on the industry to adjust.

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