Plus: Why tariffs will make medicine more expensive |
| President-elect Trump has announced his plans to appoint two key people to healthcare roles in his upcoming Administration: Robert F. Kennedy, Jr. for Secretary of Health and Human Services last Thursday, and Mehmet Oz for administrator of the Centers for Medicare and Medicaid Services on Tuesday. Biopharma stocks, particularly those of vaccine makers, fell on Thursday following the RFK Jr. pick, largely owing to the many false claims that he has made over the years about vaccines. Analysts at Morgan Stanley noted this week that biopharma stocks have been underperforming since the election, and that this sector tends to underperform during times of uncertainty about healthcare policy. Stocks fell during the early 1990s when then President Clinton’s healthcare plan was being debated, as well as in the late 2000s when Congress was crafting the Affordable Care Act. But in the bigger picture, these analysts note that at least when it comes to larger biopharma companies, “the sector is highly cash generative,” which gives them flexibility to pivot their business models towards consumer or animal health products as a way to adapt to changes in policy. Rajiv Leventhal, an analyst at Emarketer, told Forbes that even if RFK pushes for major policy changes that might impact the biopharma sector, “drug makers also wield significant influence in Congress” and that “the lobbying on behalf of the pharmaceutical industry is going to prevent some of the most extreme things that we're hearing.” Rohan Ganesh, a healthcare investor at Obvious Ventures, told Forbes that it’s too early to tell how the Trump Administration’s healthcare policy might impact the sector, especially since the incoming President hasn’t yet named who he might appoint for the role of FDA Commissioner. “You want a strong FDA commissioner with a strong personality,” he said. “You want someone who is scientifically literate and grounded in evidence-based medicine.” Quick housekeeping note: There will be no edition of InnovationRx next week. Have a wonderful Thanksgiving holiday! |
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| | | Trump Promised To Make Your Medicines Cheaper. His Tariffs Will Make Them More Expensive |
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| During the recent presidential campaign, President-elect Donald Trump repeatedly promised to lower drug prices, to the point where he falsely claimed credit for capping insulin prices, a policy actually enacted by the Biden Administration. He’s also pledged a hike in tariffs across the board, making it the centerpiece of his economic policy. “To me, the most beautiful word in the dictionary is tariff,” he said at a campaign event in October. But Trump can have one or the other — not both. And if his incoming administration succeeds in enacting the tariffs he’s touted on the campaign trail, the end result will be higher drug prices for consumers and a slowdown of innovation in developing new therapies. |
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| Venture Capital: Biotech venture fund Jupiter Bioventures closed a $70 million initial financing, and Initiate Ventures, focused on early-stage health tech and life sciences companies, closed a $45 million fund. AI Therapy: Jimini Health, which is developing a platform to use AI to augment therapy for mental health treatment, launched with $8 million in seed funding. Leukemia: The FDA has approved revumenib, marketed by Syndax as Revuforj, as a first-in-class treatment for patients with certain kinds of leukemia. Rare Disease: Citizen Health, which has a digital platform to help patients with rare diseases navigate their care and treatment, raised a $14.5 million seed round. Avian Flu: Alveo Technologies has entered an agreement with the CDC to develop a rapid flu test that can distinguish avian flu from common human flues. Gene Therapy: The FDA has approved Kebilidi, a gene therapy developed by PTC Therapeutics, for the treatment of aromatic L-amino acid decarboxylase, a genetic disorder that affects neural transmission in the brain, which can result in a number of symptoms. |
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| | | The Forbes CIO Next List: 2024 |
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Now in its fifth year, the Forbes CIO Next list recognizes executives in the U.S. making key technological deployments in their companies. The list includes several executives in the healthcare industry, including:
Lidia Fonesca, CIO of Pfizer, who has launched a suite of digital products to connect patents and physicians and has also been working to streamline digital processes in manufacturing and distribution.
Greg Meyers, Chief Digital & Technology Officer of Bristol Myers Squibb, who has been bringing AI to bear in drug discovery as well as clinical trial preparation.
Brad Miller, CIO of Moderna, which has been incorporating OpenAI’s GPT technology across a wide variety of applications.
Jim Swanson, CIO of Johnson & Johnson, which this year launched an app ecosystem for its digital surgery products. |
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| Presented by Forbes | | Join Us In New York |  | Apply to attend the 13th Annual Forbes Healthcare Summit, taking place this December in New York City. Known for its unparalleled networking and on-stage breaking news, this summit surrounds you with top healthcare professionals, healthtech innovators, and business executives from leading healthcare, pharma, insurance and wellness companies. Can’t make it in person? Stay tuned for our virtual offering, launching soon.
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