Each week we highlight five things affecting the life sciences industry. Here’s the latest.
Pharma tariffs delayed again
- Although the current administration announced 100% tariffs on branded or patented pharmaceutical imports starting October 1, a White House official clarified that this date marks the beginning of preparations, not implementation. Exemptions apply to companies building U.S. manufacturing facilities and those complying with Most Favored Nation pricing.
- According to BioSpace, in response to tariff concerns, major pharmaceutical companies have committed billions to expand domestic manufacturing, including new facilities in Virginia, Texas and Massachusetts. Meanwhile, trade deals with the European Union and Japan have set lower tariffs on generics.
Funding doubles for pediatric cancer AI initiative
- The current administration has increased funding for the National Cancer Institute’s Childhood Cancer Data Initiative from $50 million to $100 million, aiming to use artificial intelligence to analyze electronic health records and claims data to improve diagnostics, treatments and prevention strategies for childhood cancers.
- While the pediatric cancer initiative received a boost, cuts of $18 billion from the National Institutes of Health have been proposed along with the projected termination of over 3,500 research grants, reports Fierce Biotech.
Growing pharma pressure for UK/US price parity
- A large biotech company warned it may withhold launching a new cancer therapy in the UK if the National Institute for Health and Care Excellence does not agree to a “fair” price, mirroring another major biotech company’s stance on its own schizophrenia drug.
- The moves reflect growing pharma pressure to lift UK drug prices amid U.S. demands for price parity with overseas markets, writes pharmaphorum.
Major biotech agrees to Most Favored Nation drug pricing deal
- A major biotech company agreed to offer all new medicines at prices matching the lowest paid by other developed countries, with Medicaid programs gaining access to these rates. The company will also sell many drugs directly to consumers at steep discounts, up to 85%, via a new government-run website.
- In exchange for the pricing deal, the company secured a three-year exemption from upcoming 100% tariffs on branded drugs, provided it continues investing in U.S. manufacturing. The announcement boosted pharma stocks and may pressure other drugmakers to strike similar deals or face tariffs, reports Endpoints News.
FDA expands early alert program for medical devices
- After a successful pilot, the U.S. Food and Drug Administration will now issue early alerts for potentially high-risk safety events involving all medical devices. This aims to close the communication gap between manufacturers and public safety notifications, reports MedTech Dive.
- The initiative allows the FDA to notify the public sooner, sometimes within weeks, about device problems, even before formal recall classifications are complete.
For more insights in life sciences, check out RSM’s industry outlook.
