Biggest Health Care Cost Rise In 10 Years To Hit US Employers Next Year
Reuters, covering a forecast of the "largest increase in health insurance costs in a decade," notes that workers may be somewhat spared from the effects thanks to the tight labor market. Among other news, a group of PBMs launched Transparency-Rx, a lobbying coalition concerning prescription drug costs.
Reuters:
US Employers To See Biggest Healthcare Cost Jump In A Decade In 2024
U.S. employers are bracing for the largest increase in health insurance costs in a decade next year, according forecasts from healthcare consultants, but workers may be somewhat spared this time around in a tight labor market. Benefit consultants from Mercer, Aon (AON.N) and Willis Towers Watson (WTW.O) see employer healthcare costs jumping 5.4% to 8.5% in 2024 due to medical inflation, soaring demand for costly weight-loss drugs and wider availability of high-priced gene therapies. (Leo and Mandowara, 9/20)
Modern Healthcare:
PBMs Launch Transparency-Rx To Advocate For Industry Reform
A group of six pharmacy benefit manager companies have established the lobbying coalition Transparency-Rx to advocate for industry reforms targeting prescription drug costs. The nonprofit, which launched Tuesday, aims to advance legislation that would force PBMs to pass along drugmaker rebates to health insurance carriers, disclose their cost negotiations with pharmaceutical companies and end spread pricing, among other practices. (Devereaux, 9/20)
On financial developments in the health industry —
Modern Healthcare:
Intermountain Ventures, Mercato Partners, Others Back Vivante Health
Vivante Health, a digestive health startup, raised $31 million in a Series B funding round on Wednesday. The company offers a digital digestive solution to employers and health plans. Enrolled members of Vivante are given access to dietitians, nurses and health coaches through a virtual platform. (Turner, 9/20)
Bloomberg:
AI Startup Corti Raises $60 Million To Take On Microsoft In Health Care
Corti ApS, a medical software startup, has raised $60 million to sell an AI “co-pilot” to more hospitals and compete with Microsoft, Amazon and other tech giants racing into health care. Corti’s system is designed to transcribe calls made to emergency medics or doctor’s offices and then automate the paperwork process. That can include preparing the documents needed for patient care and insurance — and even offering guidance to medical professionals. Corti said it currently provides services to 60 hospitals and health networks across Europe, the UK and US. (Bergen, 9/20)
Axios:
Intarcia, A Failed Diabetes "Unicorn," Could Be Resurrected
It's been nearly three years since the collapse of Intarcia, a diabetes-focused biotech that had burned through around $2 billion from venture capitalists. Tomorrow may mark the beginning of its unlikely revival. (Primack, 9/20)
Reuters:
Ypsomed Signs Autoinjector Supply Deal With Novo Nordisk
Swiss medical technology company Ypsomed (YPSN.S) announced on Wednesday a long-term supply deal with Novo Nordisk (NOVOb.CO) for autoinjectors, the latest sign of how the Danish drugmaker's weight-loss drug business is a boon for pharmaceutical services companies. Ypsomed said it would expand its manufacturing capacities over the coming years, with Novo Nordisk contributing a significant part of the investment for the additional production infrastructure. (Fick, 9/21)
Axios:
Medical Devices A Bright Spot As Demand For Lab Space Shrinks
Boston, Minneapolis-St. Paul and San Francisco are among the U.S. hubs where medical device industries are thriving, according to a new report from commercial real estate firm JLL. While life sciences more broadly have seen shrinking demand for lab space amid a slowdown in investment and hiring, medical devices and medical technologies have emerged as a bright spot, JLL's Life Sciences Industry and Real Estate Perspective shows. (Reed, 9/20)
In other industry news —
Reuters:
U.S. FDA Found Lapses At Novo's Main U.S. Factory In May 2022 -Report
U.S. drug regulators issued a report detailing quality control lapses at Novo Nordisk's (NOVOb.CO) main factory in North America as early as May last year, according to the report obtained by Reuters via a Freedom of Information Act request. The inspection by the U.S. Food and Drug Administration (FDA) was at Novo's facility in Clayton, North Carolina, which the company says produces the active pharmaceutical ingredient (API), semaglutide. (Fick, 9/21)
Stat:
Novartis Again Scolded By U.K. Group Over Entresto Promotions
For the fourth time this year, Novartis has been reprimanded by a U.K. trade group for misleading promotional efforts for its biggest-selling drug and, in the process, failing to maintain high standards expected of pharmaceutical companies. (Silverman, 9/20)
Stat:
FDA Panel To Weigh Approval Of NurOwn, Controversial ALS Drug
Years of polarizing scientific discourse and bruising online debate will come to a head next week when advisers to the Food and Drug Administration weigh in on NurOwn, a potential treatment to slow the progression of ALS that has bitterly divided physicians and patient advocates. (Garde, 9/21)
Stat:
Eli Lilly Sues Compounding Pharmacies Over Mounjaro Versions
As the gold rush over weight-loss drugs accelerates, Eli Lilly filed lawsuits against several compounding pharmacies, spas and wellness centers around the U.S. for selling unapproved versions of its Mounjaro diabetes drug, which is frequently used for combating obesity. (Silverman, 9/20)
Also —
The 19th:
Only 2 Percent Of U.S. Doctors Are Latina. These Women Want That To Change.
When Carolina Montaño began medical school she never questioned if she belonged there. In Colombia, there was no reason to. “I was like everyone else. The concept of being a minority or different didn’t cross my mind,” she said. (Luthra, 9/20)
