Novo Grilled by Senate, PhRMA Wins IRA, BMS' KarXT Approval Pending

Novo Nordisk CEO Lars Fruergaard Jørgensen appeared before Senator Bernie Sanders’ Senate health committee on Tuesday to discuss the pricing of the medications Ozempic and Wegovy, which yielded some noteworthy insights. Concurrently, PhRMA achieved a significant legal victory when the Fifth Circuit Court of Appeals ruled in favor of the trade group, referring its complaint concerning the Inflation Reduction Act (IRA) back to a lower court in Texas. This ruling paves the way for the negotiation of 15 additional drugs under the IRA next year, which will likely include Novo Nordisk's Ozempic.

In financial news, the Federal Reserve reduced the federal interest rate by half a percentage point last week. This move was anticipated by the market and elicited a muted response from the biotech sector, with many experts doubting its significant impact.

In the realm of schizophrenia treatment, the pharmaceutical community is awaiting the FDA's decision on Bristol-Myers Squibb’s (BMS) KarXT. If approved, KarXT would be the first new drug for this neuropsychiatric disorder in several decades, marking a substantial advancement in treatment options.

Concerning obesity treatments, Novo Nordisk's oral cannabinoid receptor 1 drug demonstrated impressive weight loss results in a Phase IIa clinical trial, despite the occurrence of some adverse events. Additionally, the young startup Metsera has announced promising results from its Phase I trial for an injectable GLP-1 candidate, showing robust efficacy data.

These developments underscore the dynamic nature of the pharmaceutical landscape, with significant implications for drug pricing, federal policy, and new treatment approvals on the horizon.