{"id":494081,"date":"2024-01-23T09:41:40","date_gmt":"2024-01-23T14:41:40","guid":{"rendered":"https:\/\/platohealth.ai\/ahead-of-medicare-drug-price-reform-pharmas-drug-pricing-has-a-streisand-effect\/"},"modified":"2024-01-23T11:27:51","modified_gmt":"2024-01-23T16:27:51","slug":"ahead-of-medicare-drug-price-reform-pharmas-drug-pricing-has-a-streisand-effect","status":"publish","type":"post","link":"https:\/\/platohealth.ai\/ahead-of-medicare-drug-price-reform-pharmas-drug-pricing-has-a-streisand-effect\/","title":{"rendered":"Ahead of Medicare drug price reform, pharma\u2019s drug pricing has a Streisand effect","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
Want to stay on top of the science and politics driving biotech today? Sign up<\/a> to get our biotech newsletter in your inbox.<\/em><\/p>\n Hello, everyone. Damian here with a look at some polarizing cancer data, a strange CEO transition, and the importance of New Year cheer.<\/p>\n advertisement<\/p>\n<\/div>\n Shares of Gilead Sciences fell more than 10% yesterday after Trodelvy, the cornerstone of a $21 billion acquisition, missed the mark in a late-stage lung cancer study.<\/p>\n As STAT\u2019s Matthew Herper reports<\/a>, Gilead\u2019s drug did not significantly extend the lives of patients with metastatic non-small cell lung cancer when given after a first treatment failed. The trial was arguably a long shot, and analysts expect Trodelvy to fare better in ongoing trials enrolling patients in earlier stages of the disease. But the results removed more than $10 billion from Gilead\u2019s market value.<\/p>\n Gilead\u2019s medicine is an antibody-drug conjugate, or ADC, which uses targeted antibodies to deliver toxic doses of chemotherapy to cancer cells while sparing healthy tissues. The promise of such treatments has spurred billions of dollars in dealmaking over the last year, but the dramatic market reaction to Gilead\u2019s setback suggests investors are skittish about just how versatile ADCs might turn out to be.<\/p>\n advertisement<\/p>\n<\/div>\n Read more.<\/a><\/p>\n The cheerful tone of this month\u2019s J.P. Morgan Healthcare Conference brought a small but no less welcome boost to biotech stocks in the first weeks of the year. And while no one knows what lies ahead in 2024, history suggests that early positivity bodes well for the entire year.<\/p>\n The analysts at TD Cowen looked at JPM trading data since 2000 and found that out of the 18 years in which biotech traded up during the conference, the sector had a positive full-year return 14 times. Essentially, a good JPM has led to a good year 78% of the time. On the other end, in the six years biotech traded down during JPM, it finished the year in the red four times.<\/p>\n As the pharmaceutical lobby does everything in its power to thwart the Biden administration\u2019s signature drug pricing policy, it risks doing the president a political favor by reminding voters that he has upset the pharmaceutical lobby.<\/p>\n As STAT\u2019s John Wilkerson reports<\/a>, the Inflation Reduction Act, passed in 2022, includes a provision that allows Medicare to negotiate the prices of certain drugs, an overwhelmingly popular idea among voters. And yet, according to a 2023 poll, only about 30% of Americans think Biden has accomplished anything when it comes to the cost of medicine.<\/p>\n That\u2019s where the drug industry comes in. There are at least nine lawsuits challenging the law\u2019s validity, and judges are expected to start handing down rulings in the months to come, further publicizing the law itself. \u201cThese court challenges do help Democrats by drawing attention to what they did,\u201d said Gregory Koger, a professor of political science at the University of Miami. \u201cThere is a benefit to court battles.\u201d<\/p>\n Read more.<\/a><\/p>\n Earlier this month, Evotec, a multibillion-dollar German biotech company, said its long-time CEO had resigned from the company<\/a> \u201cfor personal reasons,\u201d news that sent the company\u2019s share price down about 20% as investors seemed to expect the drop of another shoe.<\/p>\n Then, yesterday, the company hosted a conference call<\/a> to announce that its former CEO, Werner Lanthaler, was terminated after violating the company\u2019s internal rules by repeatedly failing to report his trades of Evotec stock in a timely fashion. The company isn\u2019t aware of any external investigations into his trading, Evotec chairwoman Iris L\u00f6w-Friedrich said. Lanthaler told Bloomberg<\/a> that his delayed disclosures were merely a \u201clapse.\u201d<\/p>\n That disclosure, while presumably unpleasant to make, sent Evotec\u2019s shares up about 8%, as the company reaffirmed its financial projections<\/a> for the years to come and seemed to dispel any lingering notion that Lanthaler\u2019s departure was the prelude to a decline in its business.<\/p>\n Want to stay on top of the science and politics driving biotech today? Sign up to get our biotech newsletter in your inbox. Hello, everyone. Damian here with a look at some polarizing cancer data, a strange CEO transition, and the importance of New Year cheer. advertisement The need-to-know this morning Sanofi is acquiring Inhibrx in a deal valued at up […]<\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"author":2,"featured_media":494084,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[50],"tags":[],"acf":[],"gt_translate_keys":[{"key":"link","format":"url"}],"_links":{"self":[{"href":"https:\/\/platohealth.ai\/wp-json\/wp\/v2\/posts\/494081"}],"collection":[{"href":"https:\/\/platohealth.ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/platohealth.ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/platohealth.ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/platohealth.ai\/wp-json\/wp\/v2\/comments?post=494081"}],"version-history":[{"count":1,"href":"https:\/\/platohealth.ai\/wp-json\/wp\/v2\/posts\/494081\/revisions"}],"predecessor-version":[{"id":494083,"href":"https:\/\/platohealth.ai\/wp-json\/wp\/v2\/posts\/494081\/revisions\/494083"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/platohealth.ai\/wp-json\/wp\/v2\/media\/494084"}],"wp:attachment":[{"href":"https:\/\/platohealth.ai\/wp-json\/wp\/v2\/media?parent=494081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/platohealth.ai\/wp-json\/wp\/v2\/categories?post=494081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/platohealth.ai\/wp-json\/wp\/v2\/tags?post=494081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}The need-to-know this morning<\/h2>\n
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Is Wall Street overreacting to Gilead\u2019s misfortune?<\/h2>\n
Maybe JPM Week really does set the tone for the year<\/h2>\n
Pharma\u2019s drug pricing Streisand effect<\/h2>\n
Evotec\u2019s messy transition<\/h2>\n
More reads<\/h2>\n
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