Each week we highlight five things affecting the life sciences industry. Here’s the latest.
House bill aims to eliminate tax deductions for direct-to-consumer advertising
- A bipartisan group within the U.S. House of Representatives has introduced the No Handouts for Drug Advertisements Act, aiming to end tax deductions for direct-to-consumer drug advertising, arguing that such ads drive unnecessary spending and weaken the doctor-patient relationship, according to Fierce Pharma.
- This latest legislative effort follows several previous attempts, dating back to 2009, to close what lawmakers see as a tax loophole for pharmaceutical companies, with estimates suggesting it could increase federal tax revenues by up to $1.7 billion annually from the top 10 drugmakers alone.
Major medtech companies focus on tariffs in earnings calls
- Major medical device companies anticipate increased costs from potential upcoming U.S. tariff policies.
- Many, however, have yet to feel the full impact and are maintaining or even raising their financial outlooks for the year, MedTech Dive reports.
Pharma companies with U.S.-based IP and manufacturing attract investor attention
- Following statements from the Trump Administration regarding pharmaceutical-specific tariffs, investors are favoring biotech companies with U.S.-based manufacturing and intellectual property, despite their higher tax rates.
- These companies appear less exposed to potential financial impacts of the proposed trade policies, according to The Wall Street Journal.
FDA considering whether to approve updated COVID vaccine for winter flu season
- The Food and Drug Administration commissioner stated the agency is reassessing whether to approve COVID-19 vaccines for next winter due to a lack of booster shot data and concerns about public trust, according to CBS News.
- This marks a shift from previous annual vaccine update strategies with growing calls from both inside and outside the agency for more robust, data-driven evaluations and clinical trials before approving new formulations.
New smoking cessation drug submitted for regulatory approval
- A new smoking cessation drug will be considered for FDA approval by mid-2026. The treatment offers a potentially more tolerable alternative to current treatments with fewer side effects and has shown strong results in clinical trials, reports Stat News.
- The FDA has historically taken a cautious approach to smoking cessation treatments, while many in the life sciences industry have suggested that there is a broad need for more personalized, effective options in addiction therapy.
For more insights in life sciences, check out RSM’s industry outlook.
