Trump's Medicaid freeze, Ozempic for kidney disease, and 23andMe for sale: Pharma news roundup
President Donald Trump's move to freeze federal funding for a massive number of government programs impacted Medicaid payment systems across the country, briefly locking 72 million Americans out of their health insurance Tuesday. Novo Nordisk said this week that its diabetes drug Ozempic was approved by the Food and Drug Administration (FDA) as the first GLP-1 treatment for chronic kidney disease. 23andMe (ME), the company that popularized consumer genetic testing, announced this week that it is once again exploring 'strategic alternatives,' which could include a potential sale of the company.
Check out those stories and more pharmaceutical news highlights from this week.
The U.S. Centers for Medicare and Medicaid Services (CMS) said on Wednesday that it would seek 'greater transparency' in drug price negotiations under President Donald Trump's administration. The statement follows criticism from the pharmaceutical industry regarding the program. 'As the second cycle begins under the Trump Administration, CMS is committed to incorporating lessons learned to date from the program and to considering opportunities to bring greater transparency in the Negotiation Program,' the agency said in a statement.
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23andMe, the company that popularized consumer genetic testing, announced Tuesday that it is once again exploring 'strategic alternatives,' which could include a potential sale of the company or a restructuring. In a press release on Tuesday, the company said it needs additional liquidity to fund its operations and that 'management has determined that there is substantial doubt about the Company's ability to continue as a going concern.'
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Novo Nordisk (NVO) announced today that its blockbuster drug Ozempic was approved by the Food and Drug Administration (FDA) as the first GLP-1 treatment for chronic kidney disease among people with type 2 diabetes. The popular diabetes drug can now be used to reduce the risk of kidney disease worsening, kidney failure, and death due to heart disease in adults with type 2 diabetes and chronic kidney disease.
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President Donald Trump's move to freeze federal funding for a massive number of government programs seems to have impacted Medicaid payment systems across the country, potentially locking 72 million Americans out of their health insurance. Several lawmakers took to social media on Tuesday afternoon to confirm that their state's Medicaid payment systems have been shut off. 'The White House is aware of the Medicaid website portal outage. We have confirmed no payments have been affected — they are still being processed and sent,' White House spokesperson Karoline Leavitt wrote in a post on X on Tuesday.
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Robert F. Kennedy Jr., President Donald Trump's nominee for health secretary, reportedly expressed openness to seizing drug patents of high-priced drugs as a way to lower prices. Politico reports that Kennedy indicated during a closed-door meeting with Senate Finance Committee staffers that he would consider adopting a proposal championed by progressive lawmakers like Senators Elizabeth Warren and Bernie Sanders. The outlet cited three unnamed sources familiar with the exchange.
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The millennial-targeted telehealth company Hims & Hers (HIMS) is spending big bucks on its first-ever Super Bowl commercial to hawk its affordable weight-loss treatments. With Super Bowl ads reportedly costing about $7 million for a 30-second spot this year, Hims & Hers likely spent about $14 million for its one-minute commercial.
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Pharmaceutical companies have already raised the price of over 800 brand-name prescription drugs this year. The increases apply to list prices before accounting for insurance, rebates to pharmacy benefit managers, or other discounts. This year's increases reflect a significant increase from Dec. 29 of last year, when drugmakers had shared plans to raise prices on just over 140 brands. More price hikes are also expected to be announced through the end of January, historically the busiest month for drugmakers to make increases.
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LinkedIn (MSFT) co-founder and venture capitalist Reid Hoffman on Monday launched an AI startup aimed at discovering new treatments for cancer. Manas AI will use a proprietary AI-driven platform to help speed up the drug discovery process, from identifying potential drug candidates with 'paradigm-shifting speed and accuracy' all the way to clinical trials, Hoffman said in a press release. The company is initially focusing on treatments for breast cancer, prostate cancer, and lymphoma. Eventually, it intends to target other autoimmune diseases and rare conditions.
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