drug pricing
Trump targets Medicare negotiation loophole
The Trump administration wants to change Medicare’s drug price negotiation rules: It doesn’t want drugmakers to extend being protected from the negotiation process by adding new ingredients to existing medicines. The proposal would specifically target biologics reformulated with hyaluronidase, an enzyme that allows drugs traditionally delivered through lengthy infusions to be administered as quick subcutaneous injections.
Under the plan, certain reformulated products would still be treated as the same underlying drug for Medicare negotiation purposes rather than receiving a fresh exemption period. CMS argues the change is necessary to preserve the intent of the Inflation Reduction Act and prevent companies from sidestepping negotiation timelines. But drugmakers say that these combination products represent meaningful innovation and should qualify as new medicines.
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cancer
Lilly's Ajax acquisition may have been worth it
Eli Lilly unveiled the first clinical data behind its up-to-$2.3 billion acquisition of Ajax Therapeutics, FierceBiotech writes. The results suggest the company may now have in its arsenal a serious challenger to Incyte’s dominance in myelofibrosis, a rare blood cancer. In an early-stage trial, Ajax’s type II JAK2 inhibitor, AJ1-11095, reduced spleen volume in 70% of heavily pretreated patients. It improved symptoms dramatically, and seemed to reduce the underlying disease-driving mutations across multiple genetic subtypes — hinting it might offer disease-modifying effects.
“This medicine started working right out of the gate, with a good safety profile,” oncology and business development head Jake Van Naarden told Fierce.
Though the study remains small and early, the results perhaps explain why Lilly was willing to spend billions on Ajax.