Each week we highlight five things affecting the life sciences industry. Here’s the latest.
Trump administration considers linking U.S. drug prices to international rates
- The Trump administration is exploring a policy to tie U.S. drug prices to those in other developed countries, a move that could significantly reduce domestic pharmaceutical costs for consumers.
- According to Reuters, this proposal, previously blocked during Trump’s first term, is now being reconsidered and could be implemented through the Centers for Medicare and Medicaid Services.
Biotech stocks rally on regulatory optimism
- Biotech shares surged following comments by the new U.S. Food and Drug Administration’s Commissioner’s outline of a more streamlined FDA approval process aimed at accelerating innovation.
- In addition, the commissioner floated ideas for allowing plausibility-based approvals in indications when placebo-controlled trials are impractical, according to Investing.com.
Diabetes care adapts amid GLP-1 therapy surge
- The diabetes treatment landscape is shifting as traditional drug delivery methods evolve alongside the growing popularity of GLP-1 therapies.
- According to PharmaVoice, medtech firms are developing new tools like insulin patch pumps while also working to educate patients and providers on emerging injectable options.
Oz sworn in as CMS administrator
- Mehmet Oz was sworn in as Administrator of the Centers for Medicare and Medicaid. He stated goals of modernizing Medicare and Medicaid as well as reducing chronic disease, and combatting fraud, waste and abuse in public health programs.
- The Trump administration also stated that they do not foresee budget cuts to Medicare or Medicaid at this time, according to MedTech Dive.
Tariffs could present challenge for generic drug market
- Generic drugmakers face vulnerability to potential U.S. pharmaceutical import tariffs due to their fragile supply chains, low profit margins and reliance on foreign active pharmaceutical ingredients, particularly from India and the European Union. Disruptions could trigger shortages and manufacturing exits.
- The Trump administration is considering industry-specific tariffs, but many in the life sciences industry have expressed concern that such measures would disproportionately impact the generics sector.
For more insights in life sciences, check out RSM’s industry outlook.
