Last Week’s Headlines: Pharma Giants Face Off Against Medicare, Illumina’s Leadership Shake-Up, and Surprising Trends in the Life Sciences Workforce
Last week witnessed a dramatic showdown as Medicare unveiled its first-ever list of drugs up for negotiation with pharmaceutical titans under the Inflation Reduction Act (IRA). Astellas, however, remained conspicuously absent from the lineup, opting to drop its lawsuit challenging the IRA’s constitutionality. While they may have withdrawn the lawsuit, Astellas maintains its steadfast belief that the IRA’s Medicare Drug Price Negotiation Program is both flawed and unconstitutional.
Meanwhile, a newly released Government Accountability Office report stressed the pivotal role of monitoring drug rebates as the IRA’s provisions take effect. As the landscape of Medicare drug spending undergoes changes, including price negotiations, formulary design, and rebates, close scrutiny of rebates will be vital.
Despite the IRA’s grand entrance, experts suggest that the initial impact on drugmakers’ revenues may be modest, especially for the first ten drugs slated for price negotiations in 2026, many of which are grappling with impending patent expirations and generic competition. However, the true financial earthquake may come in later years as HHS gains the authority to negotiate prices for more Medicare Part D drugs in 2027, followed by 15 drugs from Parts D and B in 2028, and a whopping 20 drugs from Parts D and B in 2029 and beyond.
In the realm of biotech, Illumina made waves by appointing former Agilent Technologies executive Jacob Thaysen as its new CEO, following a tumultuous period marked by the departure of former CEO Francis deSouza amid a proxy battle with activist investor Carl Icahn. Analysts praise Thaysen’s impressive background and deep scientific expertise, heralding a potential turning point for the company.
Beyond executive offices, a revealing report on life sciences workforce trends emerged post-Labor Day. Startlingly, half of entry-level jobs in the U.S. now require skills typically classified as middle to lower level, opening doors for candidates with less than a four-year degree. In response, biopharma firms are reevaluating their hiring criteria, particularly for crucial technician roles, and forging partnerships with community colleges to bridge the skills gap.
The week wrapped up with a flurry of groundbreaking collaborations. AstraZeneca’s Alexion joined forces with Verge Genomics to supercharge its neurology and rare disease pipelines, utilizing cutting-edge AI in drug discovery. In the world of ophthalmology, Japan’s Otsuka Pharmaceuticals partnered with Shape Therapeutics to pioneer adeno-associated virus gene therapies for eye diseases. Meanwhile, Seagen and Nurix Therapeutics embarked on a transformative venture valued at up to $3.4 billion, unveiling a portfolio of degrader-antibody conjugates poised to revolutionize cancer cell targeting.