Breaking News

Novo CEO faces off with Sanders over Ozempic

September 24, 2024
Reporter, D.C. Diagnosis Writer

Hello and happy Tuesday! I hope to see many of you at our Thursday morning STAT in DC event. Any burning questions for us or our speakers, send them to sarah.owermohle@statnews.com. Maybe we can talk about them over Thursday breakfast!

drug pricing 

Novo CEO pins pricing on PBMs, again

Novo Nordisk CEO Lars Fruergaard Jørgensen is in the hot seat today as Sen. Bernie Sanders calls another Senate HELP hearing on high drug costs — this time laser-focused on Novo's blockbuster diabetes and weight loss medicines, Ozempic and Wegovy.

The executive plans to deploy a longtime drug industry argument that it is pharmacy benefit managers, not drugmakers, who keep costs high for patients. He'll reference prior congressional hearings (including a HELP-hosted panel last year) and lawmakers' efforts to pass PBM reforms, according to prepared remarks.

Jørgensen will also make the case that insurers are increasingly on board with covering drugs like Ozempic and "we remain confident that Medicare will ultimately see this value as well." That's unlikely to sate Sanders, who said last week that generic manufacturers have agreed to sell the products at less than $100 a month, and would still turn a profit.

It also doesn't solve the problem of how Medicare would pay for millions of eligible enrollees, or forecasts that Jørgensen does note that Wegovy and Ozempic could soon face Medicare price negotiations.


2024 watch

The wheels on a mysterious anti 'Big Pharma' bus go 'round the U.S.

A big red bus emblazoned with anti-pharmaceutical industry messaging is trekking around the country, rallying against high drug prices and other industry practices. But while the group's message is clearly stamped on the bus, its origins aren't — Rachel Cohrs Zhang investigates.

The 'Bust Big Pharma' tour, which has made stops in Arizona, Montana, and Wisconsin, including a Green Bay Packers game, is funded by a dark-money group that officially formed last month. The nascent organization has ties to Republican campaign veterans and echoes some Trump-supported policies. 

But it's not just about lowering drug costs, a popular issue among American voters across the spectrum. The campaign's website also suggests more drugmaker liability for vaccine safety, highlighting a simmering issue among conservative groups. More from Rachel


budget talks

Priority review vouchers get prioritized in government funding bill

A program to spur research on rare-disease treatments is part of the short-term government funding bill that a House committee advanced Monday, John Wilkerson reports.

Patient advocates fear the loss of the Pediatric Rare Disease Priority Review Voucher program, which is set to expire after Sept. 30. The so-called continuing resolution would keep the government running through Dec. 20, and the voucher program would be renewed for the same period. 

Advocates' real goal is to get it renewed for at least five years, probably as part of a year-end government funding package. This week, the Senate health committee will mark up a bill that would renew the vouchers for six years. The House Energy & Commerce Committee last week unanimously passed a bill to renew the program through Sept. 30, 2029. The House bill also would expand the kinds of pediatric cancer studies the FDA can direct drug companies to conduct. The House is expected to pass that bill this week.



on the hill

Lawmakers push to extend telehealth prescribing

Two Democratic lawmakers are working to preserve health providers' right to prescribe controlled substances via telehealth, including stimulants for ADHD and buprenorphine for opioid addiction.

A new bill being drafted by Sen. Mark Warner (D-Va.) and Rep. Doris Matsui (D-Calif.) comes months before the expiration of temporary waivers first enacted by the DEA during the Covid-19 pandemic. Those rules are set to expire at the end of the year. More from Lev Facher and Mario Aguilar.


tobacco policy

People want to quit smoking. Where are we going wrong?

Of the roughly 15 million Americans who tried to quit smoking in 2022, 5 in 6 failed. Many argue that the smoking-cessation drugs on the market don't work well, and come with side effects and reputations that keep some smokers from ever trying them.

Despite this, there hasn't been a new class of drug approved for the condition in nearly two decades, Nicholas Florko reported in his last missive for STAT. It's a perfect storm of factors, advocates say: Drugmakers see brighter, more profitable prospects in other disease areas, and the FDA is historically skeptical of the smoking-cessation world.

With cigarette smoking killing tens of thousands of Americans a year, some of those advocates, former, and even current officials are turning up the pressure for FDA in particular. There's arguments that the agency set an impossibly high bar to find the next smoking-cessation product — and there's a meeting next month to hash it out. More from Nick.


FDA moves

Med device safety has a new face

The FDA tapped former device industry exec Ross Segan to lead its division charged with ensuring medical device safety, STAT's Lizzy Lawrence scooped Friday.

Segan has worked in the industry for years. He most recently served as chief medical officer for Olympus, an endoscope company with a long FDA history including warnings about product defects.

While it's not uncommon for industry leaders to join the agency, that track record has some advocates on guard as Segan takes over a complicated device safety portfolio. More from Lizzy


drug pricing

Cassidy eyes exempting small biotechs from IRA plan

Sen. Bill Cassidy (La.) revealed a bill that would let some small drugmakers avoid President Biden's sweeping law to let Medicare directly negotiate drug prices, John scooped Friday. 

The Inflation Reduction Act already exempts a set of biotechs from that plan. But that exemption expires after 2028, and only applies to drugs that were on the market in 2021. Cassidy's bill would extend those protections for longer and potentially include more biotech companies.

There's no chance, with a Democrat-controlled Senate and White House, that the bill gets traction this year. But with the election weeks away, Cassidy's legislation could be a preview of what's to come in a new Congress. More from John.


More around STAT
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Read premium in-depth biotech, pharma, policy, and life science coverage and analysis with all of our STAT+ articles.

What we're reading

  • The U.S. has relied on cheap, effective generic drugs for 40 years. Now that promise is under threat, Tradeoffs/STAT
  • Senate Democrats' emergency abortion care blitz, Axios
  • Senate panel votes to hold Steward Health Care CEO in contempt, The Boston Globe
  • Trump vows to 'save' vaping after private meeting with vaping lobbyist, The Washington Post

Thanks for reading! More on Thursday,


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