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RFK Jr. set to defend HHS cuts on Capitol Hill today

May 14, 2025
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National Biotech Reporter

Good morning. We've got a lot going on today. A bunch of my colleagues are in San Francisco for our Breakthrough Summit West, which is focused on the impact of AI on health innovation. Among those taking the stage: Robert Califf and Reed Jobs.

Also today, health secretary RFK Jr. will be testifying in front of lawmakers about cuts to HHS. More on that below.

The need-to-know this morning

  • GSK is paying $1.2 billion upfront to Boston Pharmaceuticals for an experimental drug to treat the liver disease known as MASH. The deal for the "Phase 3 ready" drug, called efimosfermin, includes another $800 million if certain milestones are met.

politics

RFK Jr. set to defend HHS cuts on Capitol Hill today

Bill Cassidy, the Republican leader of the Senate's health committee, plans to question health secretary Robert F. Kennedy Jr. today about his overhaul of HHS, according to excerpts of his opening remarks at a hearing scheduled for later today.

Cassidy plans to encourage reforms at the agency — saying "bureaucratic bloat and regulatory hurdles" are impeding the agency's core work — but also push for Congress to be included in the plans for reform, according to the remarks.

Kennedy is going before the health committee to discuss the Trump administration's budget request, which — if approved by Congress — would reduce HHS' budget by nearly a quarter from its current levels. Kennedy is also scheduled to testify before the House Appropriations Committee.

Read more from STAT's Daniel Payne.



obesity

Novo signs deal with Septerna to develop obesity pills

Novo Nordisk said this morning that it will work with the biotech Septerna to develop oral GLP-1 obesity drugs, as it races to catch up to Eli Lilly's efforts to bring a more convenient weight loss treatment to the market.

Under the deal, Septerna, which specializes in making small molecule drugs, is eligible to receive about $2.2 billion from Novo, including more than $200 million in upfront and near-term milestone payments.

The companies said they'll start with four development programs for potential small molecule treatments directed at targets within a class of receptor called G protein-coupled receptors — including commonly targeted receptors like GLP-1, GIP, and glucagon hormone receptors.


gene editing

First patient treated with prime editing

From my colleague Jason Mast: The first ever patient has been treated with prime editing, a powerful technology for making precise changes to DNA.

Harry Malech, an NIH researcher and investigator on the study, announced the news yesterday during an award speech at the American Society of Gene & Cell Therapy meeting, apparently against the wishes of Prime Medicine, the company that devised the experimental therapy. "They'll probably throw bricks at me," he joked.

The therapy is for chronic granulomatous disease, a very rare genetic disorder that impairs the immune system and leaves patients vulnerable to deadly infections. Researchers are attempting to insert two missing DNA letters into patients' blood cells — a genetic surgery that can only be done with prime editing.

Prime, which has been struggling financially, received FDA clearance for the trial last August. But the rarity of the disease and the complication of the procedure – blood cells have to be removed, edited, and then returned – has likely made recruitment slow. The company has promised to release data this year.

For more news from the ASGCT meeting, sign up for Jason's newsletter here.


politics

Trump tucks a subtle threat in his drug pricing order 

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Anna Moneymaker/Getty Images

Embedded in President Trump's executive order this week is a sentence that appears to threaten that the Food and Drug Administration could withdraw drug approvals if pharma companies don't lower their prices.

The order specifically gives drugmakers 30 days to agree on lower prices with the government, with the aim of bringing prices down to what other countries pay. Notably, the order says that if "significant progress" is not made on lowering prices, FDA Commissioner Marty Makary would be empowered to "review and potentially modify or revoke approvals granted for drugs… that [may be] unsafe, ineffective, or improperly marketed."

Regulatory and legal experts question the legality of that provision, though, since the FDA can only withdraw approval of a medicine if certain statutory criteria are met, like if the drug is unsafe or if there is a lack of data on effectiveness. 

Read more from STAT's Ed Silverman.


politics

Can the U.S. get Europe to raise drug prices?

Another aspect of Trump's plan relates to his goal of getting other developed regions like Europe to pay more for drugs, in order to narrow the discrepancy between drug prices in the U.S. and other countries.

U.S. officials have suggested that they could raise the issue of drug prices as part of ongoing trade negotiations with the European Union, but it won't be easy to get European countries to budge, my colleague Drew Joseph reports. 

In Europe, drug prices are negotiated and determined country by country, making it harder for the U.S. to exert influence on regions it deems to be bad actors. Additionally, European countries have already been spending more on medicines over time as prices rise, leaving them little room to pay even more for medicines.

Read more.


More around STAT
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More reads

  • Upheaval at FDA pushes some biotech firms to move early trials out of U.S., Reuters
  • Scientific societies call for a moratorium on using CRISPR to create genetically modified children, STAT
  • Hospitals get to keep special payments in GOP plan to slash Medicaid, STAT

Thanks for reading! Until tomorrow,


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