AstraZeneca is the latest major drugmaker to strike a deal with the Trump administration on lowering U.S. drug prices https://t.co/3H5nCVbMoC ...

Industry Personnel - Lilly is recruiting Peter Marks, former US vaccine chief, to spearhead research into potential new medicines for infectious diseases [1] Research & Development - The company is focusing on developing new medicines for infectious diseases [1]

Michelle Ross is the CIO of Stempoint Capital where she runs a biotech fund and she joins us once again now. It's good to see you. Very good to see you too.A reason to have a smile. Yeah. In in this space is what do you think of what Krinsky says.Is it meaningful. It's uh it's very unique set of circumstances that that have led us to this point. And I think what we saw even last week was pretty dynamic in the sense of how much some of these names traded up on the back of an announcement by the administratio ...

Regulatory Focus - FDA is cracking down on misleading drug company ads by sending thousands of warning letters and about 100 cease and desist letters [1][6] - FDA aims to close a regulation loophole from 1997 that allowed companies to put side effects on a website instead of in the ad, requiring more disclosures and potentially longer ads [4] - FDA enforcement of existing regulations had dwindled, with only one enforcement letter sent in 2023 and none the previous year, but recently 108 cease and desist letters and over 1,500 warning letters were sent [5][6] Industry Practices & Concerns - Pharmaceutical companies spend over 10 billion USD on ads in the United States, which can be 20-25% of a company's budget [7] - Doctors believe these ads distort the doctor-patient relationship by creating increased demand for medications, often expensive ones, regardless of clinical appropriateness [3] - The marketing often focuses on creating demand without informing people what the drug is used for, leading to patients asking their doctors for specific medications [8][13][14] - The increase in drug spend since 1997, 31% is attributed to pharmaceutical direct-to-consumer ads [11] - The US healthcare system is facing an overmedication crisis, contributing to a "pill-popping culture" [11][12][13] Potential Solutions & Perspectives - The administration suggests companies use the money spent on ads to lower drug prices for everyday Americans [7] - Some pharma CEOs have expressed privately that they would like to see these ads go away, feeling pressured to run them [17][18] - Addressing pharmaceutical ads is seen as a significant reform to address overmedication and high drug spending in the United States [12][13]

AstraZeneca CEO broke ranks with his pharmaceutical industry peers Tuesday, saying he was open to aligning drug prices globally https://t.co/eQHyxQ8wwF ...

Donald Trump's latest tariff missive focuses on the pharmaceutical industry, Nvidia expects to start shipping high-end chips to China soon and Kevin Hassett emerges as the frontrunner for the Fed job: Here is your Evening Briefing. https://t.co/3iO0dlhtF8 ...

Trade Policy on Pharmaceuticals - Tariffs of 200% will be imposed on pharmaceuticals brought into the country after a grace period of approximately one year to one and a half years [1] - The policy aims to address the departure of pharmaceutical companies to other locations [2] Trade Policy on Metals and Other Goods - Steel and aluminum tariffs are set at 50% [2] - Lumber tariffs have recently been implemented [2] - Copper tariffs are also set at 50% [2][3] - Tariffs have been implemented on cars [2] Expansion of Trade Policy - The company will announce policies related to pharmaceuticals, chips, and other significant sectors [2]

Obesity Drug Market & Competition - Amgen's once-monthly weight loss shot, Maritide, showed patients without type 2 diabetes losing an average of 20% of their body weight after one year, but with a high rate of side effects and discontinuations [1] - Eli Lilly appears to be leading the obesity drug race with a safe oral candidate and an injectable (amalin) that provides weight loss with less muscle mass loss [2] - Novo Nordisk is facing challenges with disappointing Kaggarma data, while Eli Lilly is presenting positive results [2] - Novo Nordisk currently holds 33% of the market share, but Eli Lilly's oral data looks promising [4] - The market may not be seeking a 25% weight loss if other options offer around 22% [5] Amgen's Valuation & Pharma Sector - Amgen's stock dropped almost 6% after disappointing results for its weight loss shot [1] - Amgen is trading at approximately 12-13 times next year's numbers, which may not be considered cheap given the current pharma multiples and revenue cliffs [7][8] - The average pharma multiple is around 10 [7] - Over 50% of revenue for companies like Merck and Bristol-Myers Squibb will disappear by the end of the decade [8] Biotech & M&A - Biotech has had a decent run, with potential catalysts for M&A activity [9] - Despite potential asset quality concerns, increased M&A activity is expected in the biotech sector due to revenue degradation at the pharma level [11] - Big Pharma companies need to pursue M&A, with Pfizer, having spent $60 billion since the pandemic, actively seeking more assets, potentially in the obesity area [12]