Breaking News

Novo slashes obesity drug prices, and a new era for IBD meds may near

February 24, 2026
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National Biotech Reporter

Good morning. I hope everyone on the East Coast is staying warm. Let's get into the news today.

business

How low can obesity drug prices go?

Novo Nordisk has decided to cut by as much as half the U.S. list prices of its weight loss and diabetes drugs Wegovy and Ozempic — escalating an ongoing pricing war with its chief rival Eli Lilly.

The new pricing plan, announced this morning by Novo, will take effect in January 2027.

Wegovy and Ozempic will both cost $675 per month, or 50% and 34% lower than the current obesity and diabetes treatments, respectively. The price cuts will apply to both the injectable and pill versions of the drugs. 


biotech

Novel drug combinations may spark new era for IBD treatment

Even though inflammatory bowel disease is remarkably common, affecting around 7 billion people worldwide, there's been a dearth of effective treatment options for patients. Only about 30% find relief with current drugs.

A new wave of drug development could change that. AbbVie, Eli Lilly, Pfizer, and Merck have spent a combined $30 billion over the last few years acquiring startups with drug candidates that target unexplored avenues of inflammation in the digestive tract.

The excitement for these therapies stems not only from the drugs themselves but a sense that they can be mixed with already approved therapies to great effect.

Read more from STAT's Allison DeAngelis.


Deals

Vir's cancer pivot pays off with Astella partnership

Some savvy deal-making has netted Vir Biotechnology a mountain of cash and a new partner to advance an experimental prostate cancer treatment into late-stage clinical trials.

In a partnership deal announced Monday evening, Astellas said it is paying Vir $240 million in cash and making a $75 million equity investment in exchange for co-development and marketing rights to a prostate cancer drug called VIR-5500.

VIR-5500 is one of several early-stage drugs that Vir licensed from Sanofi in 2024, part of a larger corporate restructuring pushed through by CEO Marianne De Backer to shift the biotech's R&D focus towards cancer and away from infectious diseases.

In conjunction with the Astellas partnership, Vir reported an update from a Phase 1 study of VIR-5550 that showed promising tumor and biomarker responses in patients with advanced prostate cancer. Data are being presented at a cancer meeting over the weekend. Phase 3 clinical trials will start next year, Vir said.

VIR-5500 is a type of T-cell engager that simultaneously targets a protein called PSMA highly expressed on prostate cancer cells, and a receptor on a patient's T cells. The drug utilizes a "mask" technology to avoid healthy tissues and reduce immune-related side effects.

Vir shares were up 58% in Monday's pre-market trading session.



 

regulation

FDA's new pathway for bespoke therapies appears at odds with recent actions

The FDA yesterday released detailed guidance for the approval of bespoke medicines crafted to treat patients' individual mutations.

This new "plausible mechanism pathway," which was previewed by top FDA officials in a journal article last year, has been greeted enthusiastically by companies and patient groups who see it as a way to usher in gene therapies for patients with mutations too rare to interest pharma.

The announcement, however, comes after regulators rejected or seemingly reversed course on several gene therapies over the past year that seemed on track for approval, angering patient groups.

Read more from STAT's Jason Mast and Lizzy Lawrence.


OBesity

Novo reports 'triple G' obesity drug study results

Fresh off a failed trial that sent its shares plummeting Monday, Novo Nordisk on Tuesday said that one of its experimental obesity drugs — one with three targets — helped patients lose nearly 20% of their weight after 24 weeks in a midstage trial, versus 2% for those who received a placebo.

The drug, which works on GLP-1, GIP, and glucagon, is being developed by Novo and China's United Biotechnology. The new results came from a Phase 2 trial of the medicine, known as UBT251, conducted in China. Side effects were similar to those seen with other weight loss medications, the companies said.

Novo is conducting a global Phase 1/2 trial of the drug in obesity, with results expected next year. The company is also starting a Phase 2 trial of UBT251 in type 2 diabetes later this year.

"We are very encouraged by these data from the trial in China, which demonstrate the potential of UBT251 and its differentiated clinical profile and safety and tolerability profile," Martin Holst Lange, Novo's head of R&D, said in a statement.


telehealth

Hims CEO stresses products outside of weight loss

As Hims & Hers faces scrutiny from regulators for its compounded GLP-1 products, CEO Andrew Dudum is trying to draw attention towards the telehealth company's other offerings.

"The reality is that Hims & Hers has always been and continues to be more than one treatment," Dudum said on Hims' earnings call yesterday. "And really, the amount of patients actually on the compounded GLP-1s is actually quite a small minority of the aggregate subscriber base."

Hims drew criticism from doctors and regulators when it tried to launch what it called a compounded version of Novo Nordisk's Wegovy pill earlier this month.

Over the past year, Hims has attempted to broaden its business with a pitch around longevity. It bought peptide and at-home lab testing facilities, launched products for low testosterone and menopause, and invested in Grail before launching its blood-based cancer screening test.

Read more from STAT's Katie Palmer.


biotech

The Chinese licensing streak continues 

A startup called Slate Medicines announced today that it's licensed a headache drug from DartsBio Pharmaceuticals, making it the latest U.S. company to hunt for candidates in China.

Slate also raised a $130 million Series A round co-led by RA Capital Management, Forbion, and Foresite Capital.

The drug, SLTE-1009, is a monoclonal antibody targeting the PACAP neuropeptide to prevent migraine and other headache disorders.


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