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Good afternoon! That is Annika Kim Constantino, and I cover the biotech and pharmaceutical industry for CNBC.com.
Three names in the industry – Johnson & Johnson, Merck and Bristol Myers Squibb – face a pivotal few weeks ahead.
CEOs from those corporations are slated to testify at a Senate hearing on high prescription drug prices in the U.S. on Feb. 8 at 10 a.m. ET, Sen. Bernie Sanders announced Friday.
It took subpoena threats from the senator, but J&J CEO Joaquin Duato and Merck CEO Robert Davis have agreed to testify after each executives declined earlier requests to look at the Senate HELP committee’s hearing. They join Bristol Myers Squibb CEO Chris Boerner, who agreed to the panel’s initial invitation to look.
Sanders hopes the hearing could bear some fruit for Americans, especially after Eli Lilly’s CEO promised not to boost the prices of the company’s insulin products during the same grilling the panel held in May.
But why is the committee targeting Merck, J&J and Bristol Myers Squibb in the first place? Sanders noted that every one three corporations manufacture a few of the most costly drugs sold in the U.S.: Merck’s diabetes drug Januvia, Bristol Myers Squibb’s blood thinner Eliquis and J&J’s immunosuppressive medication Stelara.
He is not fallacious:
- The typical retail price for a month’s supply of Januvia can range from $500 to $700 before insurance and other rebates.
- Eliquis’ retail price for a month’s supply is almost $600 before insurance.
- The retail price for one dose of Stelara taken every eight weeks is almost $25,500.
Those prices don’t reflect the exact cost individuals with insurance pay out of pocket.
Still, data from the Biden administration suggests that some older adults with Medicare Part D coverage still pay a whole bunch of dollars for those medications. On average, Medicare enrollees paid $2,058 for Stelara, $441 for Eliquis and $270 for Januvia out of pocket in 2022, a fact sheet from the administration said.
That is why the three drugs can be subject to the first round of Medicare drug price negotiations, a key policy under the Inflation Reduction Act that goals to make costly medications cheaper for seniors. J&J, Merck and Bristol Myers Squib are all suing to halt the talks, which is able to establish latest prices that can go into effect in 2026.
Those discussions are going to heat up on Thursday, when Medicare will make initial price offers for every of the 10 drugs chosen for negotiations.
Merck, J&J and Bristol Myers Squibb are also facing pressure for another excuse: billions of revenue can be in danger after a few of their blockbuster drugs tumble off a “patent cliff” over the next few years.
That refers to when an organization’s patents for a number of leading branded products expire, which allows for competitors to sell copycats of those drugs, often at a cheaper price. That typically causes revenue to fall for drugmakers and costs to drop for patients, who can access similar but cheaper drug options.
I did a deep dive on patent cliffs this weekend and zeroed in on a few of the biggest medicines with key upcoming patent expirations:
- Merck’s Keytruda, an immunotherapy that treats melanoma, head and neck, lung and other certain forms of cancers.
- Bristol Myers Squibb’s Opdivo is an immunotherapy used to treat cancers, including melanoma and lung cancer.
- Bristol Myers Squibb’s Eliquis
- J&J’s Stelara
“While you step back from all of it, lowering drug costs for patients and opening it as much as a broader set of individuals is an incredible thing,” Mike Perrone, Baird’s biotech specialist, told CNBC. “So, while it’s an issue for these pharma corporations, it is a help to the system and that is why it’s created.”
The newest in health-care technology
That is Ashley Capoot, and I cover health tech for CNBC.com.
Apple to reportedly explore health applications for Vision Pro headset
It’s a giant week for Apple, as the company’s highly anticipated mixed reality headset, the Vision Pro, launches Friday. The $3,500 headset is Apple’s first big latest product since the Apple Watch launched in 2015, and the company has reportedly set its sights on health care as a growth marketplace for the technology.
In a video to Apple employees earlier this month, executives said the headset could “hopefully improve patient outcomes” and allow surgeons to take a look at displays during procedures, in keeping with a report from Bloomberg.
Many health systems are already using virtual and augmented reality headsets like the Meta Quest 2 to coach surgeons and treat patients, as CNBC reported in September. The U.S. Department of Veterans Affairs, for example, uses headsets across greater than 160 facilities in at the very least 40 alternative ways.
The query stays whether health systems can be willing to cough up the money for Apple’s expensive latest technology, or in the event that they’ll select cheaper options like Meta’s Quest 2, which starts at $250.
Testing a consumer-facing CGM from Signos
It has been per week since I began testing out a continuous glucose monitor, or a CGM, from the startup Signos. CGMs are small sensors often worn on the upper arm that track blood sugar levels. Individuals with diabetes primarily use the devices, since the data will be wirelessly sent to a smartphone and help prevent emergencies.
Signos’ CGM system is supposed for the average consumer, so it will not be intended for diabetes management. The startup has its own app that shows users how their bodies reply to specific foods, what causes their glucose to spike and after they should exercise to get the best results for weight reduction. I’m trying it out for 30 days to see what I learn.
Since the CGM relies on a small sensor under the skin to get a reading, I used to be barely nervous about putting the device on my arm. Much to my relief, the application was actually easy and painless, and Signos’ app walked me through all the steps to get arrange.
I have been logging my meals, sleep and exercise and completing a series of activities to learn how one can interpret my data. I’ll have more reporting on this in the coming weeks, so stay tuned!
Be at liberty to send any suggestions, suggestions, story ideas and data to Annika at annikakim.constantino@gmail.com and Ashley at ashley.capoot@nbcuni.com