Each week we highlight five things affecting the life sciences industry. Here’s the latest.
Drug levy talks collapse amid UK government threats
- Negotiations between the UK government and pharmaceutical industry over medicine rebate rates collapsed after the Health Secretary threatened to withdraw without a deal, citing repeated delays by the trade body, reports Pharmaphorum.
- The industry warns that soaring rebate levels could potentially deter investment, reduce patient access to innovation and cost billions in future economic growth.
New biologics plant highlights challenges of U.S. drug manufacturing
- A $3.2 billion biologics facility in North Carolina being constructed by Fujifilm Biotechnologies illustrates how difficult it is for drugmakers to quickly expand U.S. production despite looming tariff threats.
- Per CNBC, even with rising domestic investment, experts note that most drugs still originate overseas, meaning tariffs could reshape supply chains but won’t rapidly shift manufacturing capacity.
US-EU pharma tariff deal eases but doesn’t eliminate tensions
- The U.S. and European Union agreed to cap tariffs on branded pharmaceuticals at 15%, sparing the industry from threatened hikes of up to 250% but still adding billions in costs, reports Atlantic Council.
- Despite avoiding the worst-case scenario, analysts warn the tariffs could raise drug prices, drive European firms to shift production to the U.S. and strain long-term transatlantic cooperation.
FDA narrows eligibility for fall COVID vaccines
- The U.S. Food and Drug Administration approved updated COVID shots for fall but limited them to adults 65+, children and adults with certain medical conditions, and removed emergency authorizations for younger kids, reports NBC.
- Medical groups warn the restrictions could hinder access, raise costs for uninsured patients and leave children more vulnerable as respiratory virus season approaches.
CDC director fired after refusing to resign
- The termination of the Centers for Disease Control and Prevention’s director sparked a wave of resignations from top CDC officials and raised concerns about politicization and misinformation in public health leadership.
- This follows controversial moves by the U.S. Department of Health and Human Services Secretary, including cutting mRNA vaccine funding and replacing vaccine advisory members. Experts warn these actions could weaken the CDC and impact public health, reports NBC News.
For more insights in life sciences, check out RSM’s industry outlook.
