Tariffs 'could cancel out discounts with biosimilars'

 Tariffs on US pharma imports could remove discounts offered to health systems by biosimilars and threaten the future of the sector, according to a non-profit group.

Juliana Reed of the Biosimilars Forum, which lobbies for ways to increase access to biosimilar copies of brand name biologic medicines, is concerned about dire consequences if the Trump administration acts on its threat to impose levies on medicines.

Juliana Reed - Biosimilars Forum

"In order for biosimilars to offer cost-savings of up to 85% discounts on reference product medicines, the industry has had to design and implement one of the most efficient supply chains and manufacturing processes in the world," she said.

"We are concerned that, following this investigation, tariffs on pharmaceuticals could raise prices for patients, exacerbate drug shortages, and dangerously disrupt supply chains for life-saving medicines, including biosimilars," according to Reed.

The comments follow the just-announced Section 232 national security investigation into the pharma sector by the Trump administration, and repeated comments by the President and other senior figures that tariffs are on the way imminently.

"Tariffs that directly target the biosimilar supply chain – from the original ingredients to the [finished] products – could threaten the future viability and existence of the biosimilars industry," she added, pointing out that each biosimilar takes eight to 10 years to develop at a cost of close to $300 million.

The payoff for US healthcare systems are prices that are on average 50% lower for biosimilars than their branded equivalents, a key asset in Trump's stated aim of reining in "burdensome healthcare bureaucracy and out-of-control spending in Medicare."

Pharma has so far been exempted from Trump's tariff blitz, which imposed a flat rate of 10% on imports from 5th April and much higher levels on countries deemed to have the greatest trade surplus with the US, including a 145% rate on China, which has since responded with a 125% rate on US imports.

For some weeks, the US administration has said it plans industry-specific levies for some key industries, in a similar manner to the current situation for car, steel, and aluminium imports. In 2024, the US imported $213 billion of medicinal products.

'Biosimilar void' looming

The Biosimilars Forum has also pointed to the slow development of the biosimilar sector in the US compared to other areas of the world, such as Europe, which could be exacerbated if margins on the products are reduced even further.

Despite 118 reference biologics expected to lose patent protection over the next decade, only 12 currently have a biosimilar in development.

"The Forum stands ready to work with the administration to further our shared goals – from promoting free market competition to providing lower expenditures for government healthcare programmes to ensuring taxpayers, veterans, and small businesses have the treatment options they need at prices they can afford," said Reed.

She has called on the federal government "to support the biosimilars industry as a key component to Make American Healthy Again and save Americans and the government billions of dollars."

https://pharmaphorum.com/news/tariffs-could-cancel-out-discounts-biosimilars

With Tariffs Looming, EU and US Pharmas Make Demands of European Commission

 

Playing both sides of trade war, pharma companies are asking for certain compensations for scientific innovation and a smoother regulatory framework.

With U.S. President Donald Trump doubling down on plans to issue pharma-specific tariffs, the industry is now demanding that the European Union implement certain measures to help them maintain their presence in the region, according to media reports on Tuesday.

Some 30 pharma companies, including European companies like AstraZeneca and American companies like Pfizer, wrote to European Commission President Ursula von der Leyen, saying that the industry suffers certain cost disadvantages in Europe compared to in the U.S., according to reporting from Reuters, which cited French publication Les Echos.

Among the industry’s demands of von der Leyen are certain compensations to recoup the cost of scientific innovation, and a simpler regulatory framework for their drugs, according to Reuters. The companies also bristled at an upcoming fee associated with wastewater treatment.

“We hope to work together in the coming weeks to ensure that these proposals become reality to the benefit of Europe’s patients and economic development,” the companies wrote in the letter, Reuters reported.

Drugs are sold at a higher price on average in the U.S., something that American politicians have long criticized. During the Biden administration, lawmakers used this disparity to blast pharma companies and ask them to lower their prices. Trump has also slammed the difference in drug pricing, signing the so-called Most Favored Nation executive order in 2020 to attempt to bring the prices Medicare pays for drugs down to the same level as other countries. That executive order was never enforced due to legal action from pharmaceutical companies and was eventually rescinded by the Biden administration.

The industry’s EU demands come as Trump’s sector-specific tariffs inch closer to being realized. Last week, Trump announced that “major” tariffs on pharma are coming “very shortly.” Over the weekend, Commerce Secretary Howard Lutnick confirmed that the tariffs are on and will likely hit “in the next month or two.”

The Commerce Department earlier this week also opened a Section 232 probe on pharma imports into the U.S., which could further empower Trump to impose tariffs on the industry.

In the face of these tariffs, pharma companies last week warned the EU that it could face an “exodus” of drugmakers to the U.S. According to European Federation of Pharmaceutical Industries and Associations, the EU could lose as much as 85% of capital investments from the industry and up to 50% of R&D expenditure. From 2025 to 2029, this could mean a potential of €164.8 billion in investments lost.

“The US now leads Europe on every investor metric from availability of capital, intellectual property, speed of approval to rewards for innovation,” the Federation warned, noting that in the current uncertain market environment, pharma has “little incentive” to invest in the EU and “significant drivers to relocate” to the U.S.

https://www.biospace.com/policy/with-tariffs-looming-eu-and-us-pharmas-make-demands-of-european-commission

Human Trafficking Too? Biden Admin Flagged Deported El Salvadoran As 'Suspect Alien'

 As Democrats work themselves into hysterics over Kilmar Abrego Garcia, a now-deported El Salvadoran man (aka, 'Maryland Man') at the center of an intense court battle, several new details about 'St. Abrego' have surfaced in the last several days - most recently that the Biden administration flagged him as a 'suspect alien' who was potentially involved in "human smuggling/trafficking" following a traffic stop hundreds of miles away from his Maryland home, according to DHS records reviewed by Just the News.

And while it should come as no surprise that the Biden administration did not follow up (or at least the records don't indicate whether they did), here's what we know:

Abrego Garcia was pulled over in November 2022 by a Tennessee state trooper for driving an SUV full of people erratically and speeding.

"Subject was observed speeding and unable to maintain its lane, and was subsequently pulled over," reads one entry. "Encountering officer decided not to cite the subject for driving infractions but gave him a warning citation for driving with an expired driver's license," the memo continues. Of note, Maryland issues driver's licenses to illegal aliens.

According to the report, the trooper believed human trafficking was involved according to a DHS summary recorded on Dec. 6, 2022. 

"During the interview, subject pretended to speak less English than he was capable of and attempted to put encountering officer off-track by responding to questions with questions," reads the summary. "When asked what relationship he had with the registered owner of the vehicle, subject replied the owner of the vehicle is his boss, and that his work is in construction."

"There was no luggage in the vehicle, leading the encountering officer to suspect this was a human trafficking incident," the report continues.

The incident was filed in DHS's system as "human smuggling/trafficking" according to the memos.

There is no record showing whether the Biden's DHS ever followed up on enforcing the matter. 

The initial review determined that Abrego Garcia was a “suspect alien” and referred his matter for review to “passport control," the records show. Three weeks later on Dec. 27, 2022, Homeland updated its record to urge all personnel who encountered Abrego Garcia in the future to “escort to secondary,” a term referring to the investigative procedures used when someone suspected of wrongdoing is encountered at a port of entry or by border patrol agents. -Just the News

This is just the latest tidbit on Abrego Garcia, the left's new George Floyd.

Domestic Violence, MS-13 Ties

On Wednesday, DHS released a court filing revealing that Abrego Garcia's wife sought a restraining order for domestic violence a year before the traffic stop.

In May 2021, a document signed by a judge described allegations of a "violent encounter." The case was eventually dismissed when his wife, Jennifer Vasquez, failed to appear for a final court hearing in June 2021.

"Just this morning, it was revealed through Maryland court documents that Abrego Garcia’s wife petitioned for an order of protection against him for two instances of domestic violence in May of 2021," said White House Press Secretary Karoline Leavitt on Wednesday. "The court ordered that ‘the respondent committed the following acts of abuse. Once, in May of 2021, assault in any degree….’" she added. "On May 4th of 2021, he punched and scratched his wife, ripped off her shirt, and grabbed and bruised her."

"This is from a court in Maryland," Leavitt continued. "So not only are Democrats rushing to defend an illegal criminal foreign terrorist gang member, but also an apparent woman-beater."

Of course, Vasquez has now changed her tune - claiming she filed the restraining order "out of an abundance of caution..."

An abundance of caution... pic.twitter.com/GJGZvzmG9s

— Byron York (@ByronYork) April 17, 2025

Kinda like why he was deported?

Meanwhile, Leavitt noted that "When Gilmar Abrego Garcia was originally arrested, he was wearing a sweatshirt with rolls of money covering the ears, mouth, and eyes of presidents on various currency denominations," adding "This is a known MS-13 gang symbol of ‘Hear no evil. Speak no evil. See no evil.’"

.@PressSec: "It's appalling and sad that Senator @ChrisVanHollen and the Democrats applauding his trip to El Salvador today are incapable of having any shred of common sense or empathy for their own constituents and our citizens. Nobody knows this more than the woman standing to… pic.twitter.com/EiNoth8zwM

— Rapid Response 47 (@RapidResponse47) April 16, 2025

"He was also arrested with two other well-known members of the vicious MS-13 gang," she continued.

Leavitt went on to point out that not one, but two separate judges confirmed Abrego Garcia’s affiliation with MS-13 — a finding that has never been disputed. But the gang ties are just the beginning. “Just this morning, it was revealed through Maryland court documents that Abrego Garcia’s wife petitioned for an order of protection against him for two instances of domestic violence in May of 2021,” she told reporters. -PJ Media

Abrego-Garcia's lawyers insisted that there was no evidence that he was MS-13, that the cops were just making it all up, that he's just a Maryland father.

Turns out that he was hanging out with multiple confirmed MS-13 members when he was arrested, that he was wearing apparel… pic.twitter.com/hwrwDnJcGY

— Will Chamberlain (@willchamberlain) April 16, 2025

And so...

If you’re not fighting tooth and nail for a serial domestic abusing MS13 deported non-citizen — it’s only a matter of time before dictator Trump starts abducting American citizens and disappearing them into torture prisons.

- Current Democrat mid-term campaign message

— Western Lensman (@WesternLensman) April 17, 2025

https://www.zerohedge.com/political/human-trafficking-too-biden-admin-flagged-deported-el-salvadoran-suspect-alien

Trump Media (DJT) Demands an SEC Probe into Qube’s $105M Short Bet

 Trump Media & Technology Group DJT +9.42% ▲ , the company behind the Truth Social app, is asking the U.S. Securities and Exchange Commission (SEC) to launch an immediate investigation into a British hedge fund, Qube Research & Technologies. The company claims Qube’s $105 million short position is suspicious and may be a case of stock price manipulation. Trump Media questioned why Qube reported this short position only in Germany, even though the company trades in the U.S. on the Nasdaq.

In a memo to the SEC, Trump Media said that Nasdaq NDAQ +1.35% ▲ , NYSE Texas ICE +1.00% ▲ , or any other exchange has confirmed whether Qube’s disclosed trades actually took place. As a result, the company is concerned that this could be illegal naked short selling, which is when a trader sells shares they haven’t borrowed. 

https://www.tipranks.com/news/trump-media-djt-demands-an-sec-probe-into-qubes-105m-short-bet

CVS statement after Arkansas bill restricting PBMs from owning pharmacies signed into law

 CVS officials said a new law restricting Pharmacy Benefit Managers from owning pharmacies will result in the closure of more than 20 Arkansas pharmacies.

Gov. Sarah Huckabee Sanders signed HB1150 into law on Wednesday afternoon.

CVS Health released a statement shortly after the governor signed the bill into law, flatly calling the law “bad policy.”

“CVS Health welcomes a good faith discussion with policy makers in Arkansas and across the country on ways to make medicine more affordable and accessible,” CVS shared in a statement. “Unfortunately, HB1150 is bad policy that accomplishes just the opposite: it will take away access to pharmacy care in local communities, hike prescription drug spending across the state by millions of dollars each year, and cost hundreds of Arkansans their jobs.”

According to CVS, they have 23 pharmacies across the state. They also noted that this law will close more than 100 mail-order pharmacies in Arkansas.

Sanders said signing the bill was a matter of taking care of an overdue need.

“For far too long, drug middlemen called PBMs have taken advantage of lax regulations to abuse customers, inflate drug prices, and cut off access to critical medications. Not anymore,” the governor said. “These massive corporations are attacking our state because we will be the first in the country to hold them accountable for their anti-competitive actions, but Arkansas has never been afraid to be a conservative leader for America.”

https://www.kark.com/news/state-news/cvs-shares-statement-after-arkansas-bill-restricting-pbms-from-owning-pharmacies-is-signed-into-law/

JPMorgan beefs up activism defense group, hires two managing directors

 JPMorgan Chase is hiring two veteran bankers in its global shareholder engagement and M&A capital markets group, beefing up the business as corporations face increasing pressure from global activist investors pushing for changes from swapping out management to selling off the company, according to an internal memo seen by Reuters.

The bank is bringing on Duncan Herrington from consulting firm Jasper Street Partners and Lyndon Park from ICR Shareholder Advisory as managing directors. Brian Frank, a JPMorgan veteran, will also be joining the group.

The newcomers will work with the global co-heads of the group: Alfredo Porretti and Darren Novak, and report to John Hofmann, head of North America M&A. They will be based in New York.

The hires represent the biggest expansion of the team in a decade and come as activism defense, once a nice-to-have add-on service, is now a lucrative business that major investment banks and many boutiques are scrambling to offer clients.

Last year, a record number of activist shareholders mounted campaigns at global companies, including 45 who deployed the strategy for the first time, according to Barclays data.

JPMorgan confirmed the contents of the memo. Herrington and Park could not be immediately reached for comment.

Herrington, a lawyer, was a managing partner at Jasper Street where he helped the firm's clients defend against corporate activists. Previously he worked as a defense banker at Moelis and Raymond James Financial.

Park joined ICR in 2018 to advise corporate boards on governance matters after serving as head of global corporate governance at Dimensional Fund Advisors and previously working in investment giant BlackRock's Investment Stewardship unit.

Frank, who has been with JPMorgan for nearly 17 years, focused on M&A Capital Markets and worked with the event driven sales & trading team.

JPMorgan restructured its efforts to assist clients when activists come knocking in 2020 and has since surged in the league table rankings that count banks' mandates. Last year, it came in second behind Goldman Sachs and ahead of Bank of America in Bloomberg's tally of Global Financial Advisers. In 2020, the bank ranked in the No. 8 spot, according to LSEG data.

Last year, JPMorgan defended Walt Disney when hedge fund Trian Fund Management pushed for board seats. The bank also worked with asset management firm BlackRock when Boaz Weinstein's Saba Capital Management pushed for changes at some of its closed-end funds. And this year it helped Matthews International beat back a board challenge from Barington Capital Group after the two biggest proxy advisory firms recommended that shareholders elect all three of the hedge fund's candidates.

https://finance.yahoo.com/news/exclusive-jpmorgan-beefs-activism-defense-144408865.html

Elevance Health sets Q1 earnings outlook ahead of consensus

 Elevance Health (NYSE:ELV) on Thursday issued its preliminary financial results for Q1 2025, projecting $9.61 of GAAP net income and $11.97 of non-GAAP net income on a diluted per share basis, exceeding $11.38 projected by analysts.

In a regulatory filing ahead of its Q1 earnings release next week, the managed care firm said despite rising costs in its Medicare Advantage business, the company’s medical costs in Q1 were in line with its prior projections.

“While cost trends in Medicare Advantage remain elevated, the company’s first quarter experience was consistent with its expectations and pricing,” Indiana-based ELV noted reaffirming its full-year earnings outlook of $34.15 - $34.85 per diluted share on a non-GAAP basis.

Additionally, Elevance (NYSE:ELV) continues to expect its full-year Medicare Advantage membership to reach 2,200 to 2,250 thousand members in 2025.

Despite the upbeat forecast, the company shares remain under pressure after the industry bellwether for the earnings season, UnitedHealth (UNH), announced a guidance cut and posted a rare earnings miss with its Q1 2025 results.  

https://www.msn.com/en-us/money/taxes/elevance-health-sets-q1-earnings-outlook-ahead-of-consensus/ar-AA1D7aj4