Roche follows other pharmas, committing $50B in US investment
Roche AG has become the latest pharmaceutical company to respond to the Trump administration’s threat to impose tariffs, saying it will invest $50 billion in drug and diagnostics manufacturing in the U.S. over the next five years. That figure matches a similar commitment by its Basel, Switzerland-based neighbor, Novartis AG, which on April 11 said it would be investing almost $50 billion in the U.S., also over the next five years. As with Novartis, there is no reference in the Roche announcement to the pressure to manufacture in the U.S., but the company said that once all the new and expanded capacity is up and running, “Roche will export more medicines from the U.S. than it imports.”
Harvard fighting back with lawsuit against Trump administration
Harvard University has filed a lawsuit claiming the Trump administration’s freezing of its federal funding is unlawful and beyond the government’s authority. Announcing the move, Harvard’s president, Alan Garber, highlighted the impact of freezing $2.2 billion in grants – and the threat to freeze a further $1.1 billion – will have on the university’s biomedical research. The lawsuit follows Harvard’s rejection last week of 10 demands for action from the government.
Akeso scores China approval for ebdarokimab in plaque psoriasis
China’s National Medical Products Administration (NMPA) has given the thumbs up to Akeso Pharmaceuticals Inc.’s ebdarokimab for treating moderate to severe plaque psoriasis in adults. An interleukin (IL)-12/IL-23 dual-targeted monoclonal antibody, ebdarokimab (also known as AK-101) is the company's first class 1 new drug approved for autoimmune diseases. China’s NMPA accepted the new drug application for review on Aug. 24, 2023. Akeso is also developing ebdarokimab for treating systemic lupus erythematosus and ulcerative colitis, according to Cortellis.
No more ‘fox guarding the henhouse’ under new state PBM law
Tired of waiting for the U.S. Congress to get around to making meaningful reforms to pharmacy benefit manager (PBM) practices, states are beginning to take the matter into their own hands. Last week, Arkansas became the first state to pass a law stopping PBMs from acting as a "fox guarding the henhouse" by being both a price setter and price taker, as the legislation puts it. Enacted April 16, the new law prohibits PBMs from having a direct or indirect interest in a permit allowing the retail sale of prescription drugs in the state. That includes mail order and specialty or retail pharmacies. Just two days earlier, Arkansas Attorney General (AG) Tim Griffin led 38 other state AGs in urging Congress to pass a similar nationwide ban.
Biopharma restructurings reflect strategy of short-term pain for long-term gains
Ongoing restructurings in the biopharma sector show common themes of cost-cutting, clinical failures and shifting strategic priorities. Companies are increasingly focusing on high-value pipeline assets, closing or consolidating non-core operations and making difficult workforce reductions to preserve capital. While these adjustments may lead to short-term setbacks, they are crucial for ensuring long-term sustainability.
The BioWorld Insider podcast: Two CEOs discuss bracing for tariffs, NIH grant cuts and gifting China biopharma leadership position
As pharma deals with the impact of NIH grant cuts and what could follow with the imposition of tariffs, Robert Williamson, CEO of Triumvira Immunologics Inc., and Hernan Bazan, CEO of South Rampart Pharma LLC, brought their extensive experience in the industry to the podcast. Their concerns include how tariffs will bring lower margins for U.S. companies, higher costs and eventually drug shortages. They also spoke about the impact on drug development as more than 90% of all drugs are NIH-supported and the challenges private investment faces as it steps in to fill the gap. “What we’re doing by freezing the domestic biotech innovation and supply space, is that … we're gifting China this future leadership in the biotech space with some of these tariffs,” Williamson said.
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