Trump Demands Drug Price Cuts – STAT+
Biotech today: NIH Funding Boost, Trump’s Drug Price Demands, and Regulatory Hurdles
Want to stay on top of the science and politics driving biotech today? Sign up to get our biotech newsletter in your inbox.
Good morning! Despite a previous push for cuts, the Senate Appropriations Committee is looking to increase NIH funding. Plus, President Trump is turning up the heat on drug pricing, and we’re tracking key regulatory decisions impacting major players like Regeneron and Moderna.
The Need-to-Know This Morning
Here’s a quick rundown of the headlines:
Regeneron Faces FDA Delays: Regeneron Pharmaceuticals announced the FDA rejected odronextamab, a potential treatment for follicular lymphoma. Decisions on expanded use of its eye drug, Elyea, are also being delayed. These setbacks stem from issues identified during FDA inspections at a Catalent contract manufacturing facility – recently acquired by Novo Nordisk - impacting all three applications. this highlights the critical importance of robust manufacturing processes and quality control in drug growth.
Earnings Reports from Moderna & Regeneron: Both Moderna and regeneron released their second-quarter earnings reports. Investors are closely watching these reports for insights into the performance of key products and future growth strategies.
Trump Demands Drugmakers Slash U.S. Price Now
President Trump is escalating his efforts to lower U.S. drug prices, issuing letters to 17 major pharmaceutical companies demanding they align prices with those in other developed nations. The deadline for compliance? September 29th.
The letters, as STAT’s Elaine Chen reports, propose critically important changes, including offering Medicaid and Medicare drugs at prices comparable to the lowest levels found in countries within the Organization for Economic Co-operation and Development (OECD) that have at least 60% of the U.S. GDP. The proposals also include expanding direct-to-consumer sales of high-rebate drugs and repatriating foreign profits.
This aggressive stance signals a renewed focus on drug pricing as a key policy issue, possibly reshaping the pharmaceutical landscape. The industry is bracing for a response, and the coming weeks will be crucial in determining the outcome of this high-stakes negotiation.