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Forbes
03-07-2025
- Business
- Forbes
Trump Plan To Lower U.S. Drug Prices To Overseas Levels Lacks Details
President Donald Trump, accompanied by Health and Human Services Secretary Robert F. Kennedy Jr., ... More holds up an executive order aimed at reducing the cost of prescription pharmaceuticals during an event in the Roosevelt Room of the White House on May 12, 2025, in Washington, DC. The plan would tie U.S. drug prices to the ones paid in comparably wealthy foreign nations. (Photo by) Since President Trump issued an executive order in May that he claimed would lower prescription drug prices in the United States 'almost immediately by 30% to 80%," the administration has released no details regarding how the 'most favored nation' plan would be implemented. Such particulars may never emerge and without them a most favored nation model is likely a non-starter. The president's order aspires to implement a model known as most favored nation that ties the prices of prescription medicines in the U.S. to the lowest found among comparably wealthy nations. But even pharmaceutical executives, who represent the stakeholder most affected by the order, say the administration hasn't yet furnished them with details. At a Goldman Sachs Global Healthcare Conference last month, several pharmaceutical company executives noted a lack of clarity from the Trump administration as to how the program would be implemented. The only thing that's been made public about the most favored nation model is that the lowest price will be selected among comparably wealthy nations with at least 60% of the U.S. gross domestic product per capita. Specifically, according to a press release issued by the White House in late May, President Trump expects drug manufacturers to commit to 'aligning the prices of branded products' with the 'lowest price of a set of economic peer countries.' However, this only indicates who the comparator nations are. It doesn't list actual most favored nation price targets, which the executive order had promised HHS Secretary Robert F. Kennedy Jr. would 'communicate to pharmaceutical manufacturers to bring prices for American patients in line with comparably developed nations.' It also doesn't say whether calculations would account for differences in purchasing power between nations, not just GDP per capita. For a meaningful comparison, one needs to know how much a country's currency can buy in terms of goods and services. If not the federal government, then perhaps drug companies themselves could calculate the price targets. But this raises questions about which types of prices they'd use, publicly available list or proprietary net prices. If the latter, it's unclear whether this would violate contractual obligations. And it gets much more complicated for pharmaceutical firms. In calculating prescription drug price comparisons, simply computing the differences between prices isn't sufficient. Utilization disparities between nations must be weighted to yield an accurate, commensurate calculation. And differences in dosing and formulation must be accounted for. Since the executive order is to apply to branded medicines that do not currently have generic or biosimilar competition, it's unknown what to do if a particular drug doesn't have such competition in the U.S. but has generic or biosimilar competition in the most favored nation. This is a typical phenomenon among relatively high-cost biologics like the rheumatoid arthritis drug, Enbrel, and its referenced biosimilars which have been on the market across Europe for years and yet won't be in the U.S. until the end of this decade. Finally, the substantial differences in timing of approvals and launches of prescription drugs across countries make it hard if not impossible to create an international price index. Many recently approved branded medicines in the U.S. haven't yet been approved in other peer countries, let alone had their price determined by a government authority. The executive order's lack of details extends to the direct-to-consumer platform that it says would be established, through which American patients could buy their drugs directly from manufacturers who sell to Americans at the most favored nation price. HHS Secretary Kennedy was instructed to assist in creating such a mechanism. But how this would work remains a mystery to executives in the industry. Moreover, most drug companies aren't accustomed to selling their products directly to patients. And so, it would be quite an endeavor to build a platform from scratch. In the executive order, the president says that following the calculation of target prices, if drug companies don't doesn't voluntarily reduce prices the administration would 'propose a rulemaking plan to impose most-favored-nation pricing.' But the document doesn't disclose how—through which policy vehicle—the administration intends to pursue a rulemaking plan. One possibility is pursuit of a so-called demonstration project in the Medicare program. The executive branch has broad latitude to set up demonstration or pilot projects as it sees fit, under the authority granted the Center for Medicare and Medicaid Innovation by the Affordable Care Act. Here, CMMI's purpose is to test novel payment methods as well as care models, with the dual aim of lowering healthcare costs and improving the quality of care delivered to patients. But past experience shows the considerable limitations to what CMMI has been able to accomplish. There have been dozens of models proposed since the founding of CMMI. However, some of the proposed models, including ones on international price referencing, never got tested. And the majority of models that did get implemented failed to yield cost savings. Indeed, thus far only two have been made a permanent part of a public program: A diabetes and an accountable care organization demonstration project became permanent fixtures in Medicare. Most models ultimately get canceled, including recently a value-based insurance design initiative in Medicare Advantage. There are also logistical questions around the pursuit of a CMMI model for most favored nation drug pricing that need to be clarified. Would it be a voluntary or mandatory model? Until now, the vast majority of CMMI projects have been voluntary. The question becomes would healthcare providers in the so-called buy-and-bill space want to volunteer to participate in a system in which they potentially could get reimbursed less than the price at which they purchased products. If a most favored nation demonstration project were to be mandatory, this could lead to court challenges from physician groups in addition to the pharmaceutical industry. And then there's the issue of what the timeframe would be. Originally, the first Trump administration laid out a five-year period of gradual conversion towards an international price index that constituted a blend of U.S. and overseas prices. It appears that the second administration is far less patient and wants to achieve results as soon as possible. In announcing the most favored nation plan, President Trump posted on his social media platform in May that the prices of prescription medicines would fall "almost immediately" from 30% to 80% off of their current levels. But at this point in time, it's unknown how this would be achieved and whether the logistical and legal challenges could be overcome.
Yahoo
18-06-2025
- Business
- Yahoo
TransMedics (TMDX) Continues to Scale Innovation in Organ Transplant Care
TransMedics Group Inc. (NASDAQ:TMDX) is one of the 10 best growth stocks to buy according to billionaires. The stock has had a tremendous year so far, with share price gains of 129%, leading other stocks in this list by a considerable margin, as none of the other stocks here have even reached 100%. In 2024, the company's revenue surged a robust 83%, and the street expects it to post a solid 31% growth in FY 2025. The company is also likely to experience significantly improved profitability, as consensus EPS forecasts a 77% growth this year and a 38% growth next year. A doctor performing a living donor kidney transplant in a hospital operating room, emphasizing the importance of medical advancements. On June 9, Canaccord Genuity analyst William Plovanic reaffirmed a Buy rating on TransMedics Group Inc. (NASDAQ:TMDX) with an unchanged price target of $129. This reaffirmation follows the company's June 9 presentation at the Goldman Sachs Global Healthcare Conference, where the company reaffirmed the strategy behind its industry-leading position in organ transplantation. Its execution continues to support a positive outlook, with management sharing tangible progress toward its long-term targets. At the centre of the story is the National OCS Program (NOP), which now drives nearly all company revenue, enabling TransMedics to offer a full-service, end-to-end transplant logistics and technology solution. This model has not only boosted transplant volumes but also established a critical advantage that competitors have yet to replicate. The company is targeting $1.2 billion in revenue and a 30% operating margin by 2028, driven by the expanded adoption of its Organ Care System and the upcoming next-generation platforms. Notably, its leadership in the DCD (donation after circulatory death) heart category, which now makes up about half of all U.S. heart donors, reflects its role in expanding the donor pool. TransMedics Group Inc. (NASDAQ:TMDX) is well-positioned to introduce new platforms for heart, lung, and kidney care in the coming years, including a Gen 3 system designed for greater portability and scalability. With strong clinical data and operational depth, the company appears well-positioned to hit its 10,000 annual transplants milestone by 2028 and continue growing from there. Management expects its kidney platform to launch by 2027 and aims to achieve 20,000 to 30,000 transplants over the next three to five years. TransMedics Group Inc. (NASDAQ:TMDX) is a commercial-stage medical technology company offering organ transplant therapy for patients with end-stage organ failure across multiple disease states. While we acknowledge the potential of TMDX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Sign in to access your portfolio
Yahoo
12-06-2025
- Business
- Yahoo
M&A to play ‘important role' at Teladoc: CEO
This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. Mergers and acquisitions should play an 'important role' in Teladoc's future business strategy, the virtual care firm's CEO said Wednesday. 'We're going to make investments not just for the short term, but things that we think are going to start to increase that [total addressable market], start to increase the scope and range of what we can do. And we think that's the right place to deploy our capital,' CEO Chuck Divita said at the Goldman Sachs Global Healthcare Conference. The telehealth company has already completed two acquisitions this year, scooping up preventive care firm Catapult Health in February and virtual mental health provider UpLift last month. Teladoc plans to be balanced on capital spending between investments within the firm — like spending on data and analytics and improving customer engagement with its suite of virtual care products — and external growth, including M&A, CFO Mala Murthy said Wednesday. Potential targets for M&A would focus on tuck-ins that could improve patient engagement, buys that would 'expand the aperture in terms of services' and international additions, Murthy said. Expanding the firm's reach in other countries has been a priority for the telehealth vendor. 'It's always going to be strong strategic rationale, and it has to make sense for us in terms of driving our top-line growth on a sustained basis,' Murthy said. 'That's essentially what we'd be looking for.' Teladoc has already made acquisitions under Divita's tenure as CEO, which began a year ago. Buying Catapult, which offers a virtual annual exam with an in-home diagnostic kit, should allow Teladoc to catch members' health conditions early and funnel them toward its other offerings, like chronic condition management programs, executives said earlier this year. Meanwhile, the UpLift deal aims to speed the company's ability to accept insurance coverage for care delivered by its direct-to-consumer mental health segment, BetterHelp. The unit has struggled recently, and its adjusted earnings before interest, taxes, depreciation and amortization was cut in half in the first quarter. Cost is one barrier to getting customers to subscribe to the service, an area where accepting insurance could help, management said. Recommended Reading Teladoc to acquire virtual care company Catapult Health for $65M Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-06-2025
- Business
- Yahoo
Pfizer CEO Mentioned No Drug Price Commitments by Pfizer Inc. (PFE)
Pfizer Inc. (NYSE:PFE) is one of the best wide moat stocks to buy now. On June 9, Pfizer, along with other drug manufacturers, had a meeting with the Trump administration to talk about reducing US drug prices. However, Pfizer's chief executive, Albert Bourla, mentioned that no commitments have been agreed upon. President Trump ordered drugmakers last month to slash the prices of their medicines so they match what other countries are paying. As per this executive order, the government was to select 'Most Favored Nation' target prices in 30 days. The Department of Health and Human Services called for drugmakers in the United States to revise their prices to align with the lowest price paid by similar high-income countries. At the Goldman Sachs Global Healthcare Conference, Albert Bourla commented: 'I don't know what we will hear in 30 days,' Reiterating Pfizer's focus on high-level ideas, Bourla added: 'The administration already started series of meetings with companies. … The meetings were cordial, but they were not digging into the substance,' A medical technician wearing protective gloves and a mask mixing a biopharmaceutical solution. For now, it is unclear how the US government will bring down drug prices, and this policy will be hard to execute, as per analysts and legal professionals. A spokesperson commented that Health Secretary Robert F. Kennedy, Jr. would launch a system where American patients can directly buy their medicine from drug makers that sell to Americans at a 'Most-Favored-Nation' price. Pfizer's Bourla was hopeful that, due to American pressure on European nations to pay higher prices, the overall drug prices could rise. He stated that if America starts controlling prices, Pfizer Inc. (NYSE:PFE) could withhold drugs for government reimbursement in some countries if they do not increase prices there. He clarified: 'I don't think we will remove our products from the markets there – we will just remove them from reimbursement. We will leave them in open market.' Pfizer manufactures and sells biopharmaceutical products worldwide, catering to heart health, infectious diseases, migraines, immune disorders, and cancer. While we acknowledge the potential of PFE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
11-06-2025
- Health
- Yahoo
Healthcare companies chase cures and capital in South Florida
Leaders of hundreds of public healthcare companies are in South Florida this week, talking up their innovations and financial performances to attract and impress investors at the Goldman Sachs Global Healthcare Conference. Consumers will find that nearly every disease or ailment they suffer from has a treatment in development, as big and small companies see opportunities in Americans' desire to live longer and pain-free. From new devices for sleep apnea to drugs for cancer, to creams for chronic itching and drops for improved eyesight, advances are underway that hold promise. Presenters like LENZ Therapeutics wowed the audience on Monday with product updates, such as an eyedrop that lasts all day and allows for close-up vision, which most people use reader glasses to achieve. The eye drops target a market of over 128 million people in the U.S. who need help with near vision. This year, new factors are affecting how quickly consumers can obtain a drug or device to improve or save their lives, according to company executives. The uncertainty in Washington, D.C., looms large. Policy turbulence, regulatory uncertainty, shakeups at health agencies and President Donald Trump's aggressive stance on drug pricing and tariffs factor into the future for the devices and treatments working their way toward the marketplace. Anti-Trump protests will unfold across South Florida this weekend. Here's what to expect Top RFK Jr. aide attacks US health system while running company that promotes wellness alternatives Hidden charges? Patients often face massive bills when Florida hospitals don't provide costs upfront Native Americans hurt by federal health cuts, despite RFK Jr.'s promises of protection Georgia's experience raises red flags for Medicaid work requirement moving through Congress 'This year, the biggest questions we are opening with for all of our companies is the policy calculus in Washington, D.C., and how that could play out across the healthcare sector,' said Asad Haider, Goldman Sachs' head of the healthcare business unit within Global Investment Research and the lead analyst for the U.S. pharmaceuticals sector. 'The starting point in all these presentations is give us the landscape on where things could go with respect to what's going on in Washington, D.C.' Over 200 top managerial teams attended the conference, representing every corner of the healthcare field, from major pharmaceutical companies to small biotech firms. The goal of the three-day conference was to provide institutional investors with insights into companies' business plans, data, and progress, particularly at a strategic mid-year point. Innovation hotspots this year include treatments for weight loss, with a focus on oral drugs replacing injectables and medications to help maintain a healthy weight. Another is oncology, immunology, and neuroscience with breakthroughs to detect diseases earlier and find new drug delivery methods. Several companies at the conference have formed partnerships with companies across the globe to access new markets, technologies, and expertise. China is emerging as a global leader in biotechnology, with numerous U.S. and European companies collaborating with or licensing technologies from Chinese companies. Summit Therapeutics, a Miami-based company, drew interest at the conference with its innovative cancer-fighting, bispecific antibody, ivonescimab, and its partnership with a Chinese laboratory. Ivonescimab has shown promise in previous trials in China and additional trials are underway combining the drug with chemotherapy to target non-small-cell lung cancer. 'We have over 22 or 23 different trials going on or completed or going to start,' said Maky Zangaheh, co-CEO of Summit Therapeutics. 'One element of that is a phase 3 trial that China and us are combining with over 3,000 patients enrolled, so we will have a good safety profile and efficacy profile in many different therapeutic areas. From a commercialization point of view, we are already in China and have two Chinese approvals, which is significant progress.' Doron Junger, of Sanvia Capital, a South Florida biotech investment firm, said he attended the conference looking to invest in companies developing innovations that could address large or niche markets in a more meaningful way. A few have caught his attention; however, he is cautious about those who tout therapies in their pipelines. 'More drug trials fail than succeed, and while there is a lot of innovation in this industry in areas of need like oncology and chronic diseases, even at a late stage, there is potential for a clinical trial to fail to show an advantage over a placebo group,' he said. 'Even if it does, that trial has to pass muster with the rigorous standards the FDA sets for approval.' On Monday, Arcturus Therapeutics of San Diego presented an update on a daily inhaled treatment for Cystic Fibrosis, which could be a breakthrough for the disease. Additionally, BioAge Labs CEO Kristen Fortney explained how her California company uses samples from a repository to study the biology of human aging and develop new therapies for obesity. Even after scrapping its lead obesity candidate due to liver toxicity, BioAge Labs is not shying away from the weight loss space and believes it can improve upon oral therapies now on the market, she said. 'More and more people are aging, and by definition, they are using more healthcare,' said Haider of Goldman Sachs. 'The aging population is going to need new drugs, better drugs, faster drugs for diabetes and cardiometabolics and oncology and all of these diseases that potentially could kill you. There will be innovation, but what are we willing to pay for that innovation?' Will regulations make it more difficult and/or costly for people to access the devices and drugs that can save their lives? Haider said drug pricing will be a key concern for both consumers and investors. 'Everyone is chasing big caps, big targets, but there will be winners and losers.' South Florida Sun Sentinel health reporter Cindy Goodman can be reached at cgoodman@
