We’re reading about Lilly obesity pill, FDA layoffs hurting biotechs

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4 Min Read

Ed Silverman , 2025-04-17 12:58:00

Rise and shine, another busy day is on the way. We can tell because the official mascots got an early start stalking a variety of tempting cats darting near the Pharmalot campus. And then there is the noisy parade of vehicles passing nearby on their way to who knows where. As for us, we are firing up the trusty coffee kettle to brew another cup of stimulation. Our choice today is vanilla lavender. Please feel free to join us. Meanwhile, the time has come to get cracking. So here is the latest laundry list of interesting items for you to peruse. We hope you have a smashing day and, of course, do keep in touch. Best of luck, everyone. …

The Trump administration has an expansive view for how it can lower drug prices for Americans, but has been here before and the question is whether this time will be different, STAT wonders. During his first term, President Trump tried to tie U.S. drug prices to those in other rich nations, but the Biden administration rescinded that “most favored nation” policy after a federal court stopped it from taking effect. A plan to overhaul how doctors buy and bill for drugs never got off of the ground. The same fate befell Trump’s plan to make insurers pass drug rebates directly to patients at the pharmacy counter. Similarly, the Supreme Court shot down a policy of significantly reducing Medicare payments to hospitals for administering drugs bought through a federal government discount program called 340B.

Biotech companies developing drugs for hard-to-treat diseases and other ailments are being forced to push back clinical trials and drug testing in the wake of mass layoffs at the U.S. Food and Drug Administration, The Wall Street Journal tells us. Significant delays in core FDA functions — such as approving amendments to clinical trials and guiding companies through processes for drug approval — are hindering the ability to develop drugs, say industry officials. Those setbacks are contributing to drugs taking longer to get through clinical trials and ultimately reach patients — and straining dollars for testing new possible treatments, say people familiar with the matter. These are the latest ripple effects of Health and Human Services Secretary Robert F. Kennedy Jr.’s aim to reshape the agency. About 3,500 workers were cut at the FDA. 

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