Walgreens To Shut 60 Underperforming VillageMD Clinics To Save Costs
The closures are part of a $1 billion cost-saving push, which could also see some stores' opening hours changed and other nonessential projects shuttered. Meanwhile, Novo Nordisk is warning of a surge in counterfeit versions of its Wegovy and Ozempic drugs being sold online.
Fierce Healthcare:
Walgreens Outlines $1B Cost Saving Plan, Will Close 60 Clinics
Drugstore chain Walgreens plans to close 60 underperforming VillageMD clinics and exit five markets as part of an aggressive $1 billion cost-saving strategy as it looks to boost profitability in its healthcare business. The pharmacy retail giant posted weaker-than-expected fourth-quarter earnings and offered a soft profit outlook for 2024 amid falling demand for COVID-19 vaccines and testing in the U.S. and lower consumer spending. (Landi, 10/12)
Modern Healthcare:
Walgreens To Regroup Healthcare Services Amid $1B In Cuts
Walgreens Boots Alliance aims to find $1 billion in savings as it seeks to shore up its finances while sustaining its continued expansion into healthcare services, executives said Thursday. Most of the cuts will come from U.S. retail pharmacy operations. Walgreens is scrutinizing its expenses "line by line," closing stores or adjusting opening hours, reviewing its contract work obligations and shuttering all projects deemed non-essential, interim CEO Ginger Graham told analysts as the company announced its financial results for the fourth quarter and the full fiscal year ended Aug. 31. (Hudson, 10/13)
In other pharmaceutical news —
Reuters:
Novo Nordisk Warns Online Offers Of Fake Ozempic, Wegovy Are Rising
Novo Nordisk warned on Thursday of a surge in counterfeit versions of its weight-loss drug Wegovy and diabetes drug Ozempic offered online, as German authorities gave more details of complex European trades in a fake drug case. "Novo Nordisk has seen a significant increase in illegal online sales," the company said in a statement, referring to products that contain the active ingredient semaglutide. (Fick and Burger, 10/12)
Reuters:
Wegovy, Other Weight-Loss Drugs Scrutinized Over Reports Of Suicidal Thoughts
Dawn Heidlebaugh felt trapped in a disturbing pattern while taking Ozempic, the popular drug used to treat diabetes and obesity. Each Sunday for more than a year, the 53-year-old Ohio real estate agent took her weekly injection to help control her blood sugar. Then every Tuesday, she felt lethargic, depressed and sometimes suicidal, thinking her husband and four children might be better off without her. These feelings would last a few days, and the cycle repeated every week — except when she skipped a dose. (Respaut and Terhune, 10/12)
Reuters:
Lilly's Bowel Disease Drug Succeeds In Late-Stage Study
Eli Lilly said on Thursday its experimental drug met the main goals of a late-stage study to test it as a treatment for moderately to severely active Crohn's disease, a disorder that causes inflammation in the digestive tract. Treatment with the drug, mirikizumab, helped 54.1% patients to achieve a state where they were no longer experiencing any gastrointestinal symptoms, after 52 weeks, compared with 19.6% who received placebo. (10/12)
Stat:
CRO Denies Misconduct In Lyme Vaccine Trial It Ran For Pfizer
A company that Pfizer blamed for problems with a clinical trial testing a Lyme vaccine claims that regulators gave its procedures a clean bill of health during a recent inspection. Care Access served as a contract research organization and had enrolled about 3,000 patients in the late-stage trial. But the patients were dropped last February after Pfizer and its partner, Valneva, claimed that violations of Good Clinical Practice — the international ethical and quality standards used by all clinical researchers — had been found at the study locations. (Silverman, 10/11)
Also —
Stat:
Takeaways From AdvaMed, The Largest Medical Devices Conference
Thousands of workers in the medical device industry gathered here this week for the MedTech Conference, creating an eerie dissonance with Disneyland tourists clad in Mickey Mouse ears and fanny packs. Device makers and analysts at the conference, hosted by device lobby AdvaMed, came together to discuss medical technology’s innovation problem, the industry’s deepening relationship with the Food and Drug Administration, and the growing opportunities in digital health. (Lawrence, 10/11)
Stat:
Life Sciences Deals On Track To Hit Lowest Point Since 2017
It’s no secret that biotech industry funding has fallen from its Covid highs. But with just a few months left in the year, it’s on track to hit lows that predate the pandemic. New data from Pitchbook and the National Venture Capital Association show that both the number of deals and the amount of money that’s being invested in life science companies are down significantly. (DeAngelis, 10/12)
Stat:
Peter Marks Talks Operation Warp Speed For Rare Diseases
Peter Marks wants drug developers to ask more stupid questions. It’s part of the top Food and Drug Administration official’s plan to reinvigorate gene therapy, a field that has struggled despite significant technological advances. Some companies are shelving programs or going out of business, even when they have promising data. (Mast, 10/12)
