Merck Cuts Diabetes Drug Price Amid New Year Price Hikes
Merck is a new year outlier with its diabetes drug
At the start of the new year, while many drugmakers raised the prices of their treatments, Merck took a different approach by cutting the list price of its diabetes drug Januvia by 42%. This decision was motivated by two main reasons: to align the list price more closely with the net price to benefit patients, such as those paying coinsurance, and due to changes in the Medicaid rebate program in 2024. These changes allowed Medicaid to collect over 100% in rebates if companies raise drug prices by more than inflation. Merck's Medicaid rebate rate for Januvia was over 100%, indicating a loss on Januvia prescriptions.
Experts suggest that similar Medicaid changes influenced insulin product makers like Eli Lilly, Novo Nordisk, and Sanofi to cut list prices in 2023. However, reducing list prices may inadvertently limit patients' access to these drugs, as seen when Novo Nordisk discontinued its insulin product Levemir after losing access to commercial drug formularies.
Neumora’s depression drug fails in Phase 3 study
Neumora Therapeutics' experimental depression drug did not meet its endpoint in a Phase 3 study, marking a significant setback in the search for alternatives to SSRIs. The drug showed a slight improvement in women but failed to achieve the study's primary goal, leading to an 83% drop in the company's stock value. This failure highlights the challenges in developing effective new antidepressants, with many late-stage trials in this area not meeting expectations.
Despite this setback, Neumora, which launched in 2021 with over $600 million in funding, continues to develop seven neuroscience drugs and remains operational until 2026.
Roche dives deeper into ADCs, Innovent
Roche is expanding its presence in the antibody-drug conjugate (ADC) space through a new deal with China-based Innovent Biologics. This agreement grants Roche access to ICI3009, an ADC in Phase 1 studies for small cell lung cancer, with Innovent receiving $80 million upfront and potential milestone payments up to $1 billion. This collaboration is part of Roche's ongoing efforts in the ADC field and its partnership with Innovent, following previous agreements focused on cell therapies and bispecifics for cancer treatment.