Novo Nordisk / Catalent Closing. Novo Nordisk completed its $16.5 billion acquisition of Catalent, the contract manufacturer, on Thursday. The deal gives Novo three fill-finish facilities in Indiana, Belgium, and Italy dedicated to GLP-1 production. Novo said it expects to double semaglutide output by Q4 2025. The move is defensive: Novo cannot afford supply constraints while Lilly's tirzepatide gains market share.
FTC Interim PBM Report. The Federal Trade Commission released Part 2 of its PBM investigation report on Tuesday, focusing on rebate aggregation and specialty drug pricing. Key finding: the Big 3 PBMs retained an estimated $7.3 billion in spread pricing and non-pass-through rebate revenue in 2024. The report stopped short of recommending structural remedies but signaled that enforcement actions are under consideration. PBM stocks dropped 3-5% on the news.
Humira Biosimilar Price Floor. Coherus BioSciences cut the WAC of its Humira biosimilar (Yusimry) by 85% versus branded Humira, the deepest discount yet in the adalimumab market. The move puts pressure on the 8 other Humira biosimilars to match. At current pricing, the average net cost of adalimumab biosimilars is approaching generic-level economics, approximately $800-1,200 per month versus Humira's peak net price of $4,500.
Merck Pipeline Setback. Merck disclosed that its Phase 3 PARP inhibitor trial in prostate cancer missed the primary endpoint. The stock fell 4.2% on the news. The failure narrows Merck's post-Keytruda pipeline options and may increase pressure to pursue M&A to fill the revenue gap ahead of Keytruda's 2028 LOE.
