The news: BlinkRx debuted a new quick startup direct-to-consumer (D2C) offering for pharma companies, on the heels of President Trump’s demand for more D2C drug distribution. Trump’s son, Donald Trump Jr, joined the board of BlinkRx in February. BlinkRx told Bloomberg it did not consult with Trump Jr. nor anyone in the Trump administration about the new offering. The takeaway: Pharma companies were already looking at new access models and ways to build direct connections to patients, but with the now pressing Trump demands, there’s new opportunity for digital health companies to offer vetted plug-and-play models.
The news: The FDA laid out a new FDA PreCheck initiative, aimed at helping pharma companies build US manufacturing plants more quickly. The takeaway: FDA PreCheck may ease manufacturing regulations and trim review time, but navigating real estate, construction, and skilled labor issues still means pharma companies are facing years-long timelines to reshore drug manufacturing. Trump has promised a year or two grace period on his proposed 250% tariffs, but that may not be long enough to get plants up and running. Pharma should look to cut deals—like Apple’s recent tariff exemption granted by Trump after it promised to invest $100 billion in US manufacturing—to guarantee exemptions as long as projects are underway.
The news: Illinois passed a law banning AI therapy, becoming the first state to outlaw the technology for mental health advising. Therapists in the state can still use AI for administrative tasks like transcription and note taking, but not for diagnoses or treatment decisions. Our take: Healthcare providers need to balance the need for AI mental health chatbots with the potential for misuse. Look for digital health companies using tested science and research to develop AI therapy chatbots, transparent practices, and safeguards for flagging problems.
The news: Eli Lilly’s stock plunged about 14% on Thursday as clinical results of its experimental obesity pill orforglipron fell short of Wall Street expectations. Our take: We think Lilly has the edge over Novo, despite Thursday’s market reversal due to Lilly’s obesity pill falling short in its trial. That’s likely just a near-term blip—12% weight loss in a little over a year validates that the medication is quite effective, especially when considering that most people would prefer a pill to injecting themselves. Lilly also has in its favor that Zepbound drives better weight loss results than Wegovy, while it faces less competition from the copycat GLP-1 market since semaglutide is more commonly compounded than tirzepatide.
The news: The maker of the Cologuard at-home colon cancer screening test, Exact Sciences, is buying the rights to a promising blood test for colon cancer. The takeaway: As early colon cancer rates increase, more young people are becoming interested in screening. Blood tests adds another option, and for Exact’s Cologuard, known for irreverent ad campaigns for the at-home stool sample kits, another way to advocate for more screening.
The news: President Trump said to CNBC on Tuesday that forthcoming tariffs on pharma products imported to the US could reach 250%. It’s the highest rate on pharma tariffs that Trump has mentioned to date. Our take: 250% is an enormous number, but it’s more of a threat than an end result that will impair the sector. Such a high levy rate will likely spur further manufacturing commitments, which is something Big Pharma is prepared for—especially if they’re given 18 months to move more production to the US.
The news: A California court ruled Meta’s collection of menstrual health data violated state privacy laws, per TechCrunch. The takeaway: The Meta case puts tech companies that use health data for ad targeting and marketing on notice. Explicit consent and absolute transparency is not only legally critical around healthcare data, but also key to building trust with consumers.
The news: President Trump sent letters to 17 pharma companies, demanding they take action to lower drug prices in the US within 60 days. Our take: We think it’s unrealistic to expect pharma companies to willingly cut their profits despite Trump’s escalated demands. Drugmakers called out in the letter will likely wait out Trump’s deadline and see what he threatens next, knowing they could always legally challenge the most-favored nation order. We also expect more pharma companies to make some of their medicines available through the D2C channel, perhaps seeing it as a reasonable good-faith concession that they hope will get Trump to back off the most-favored nation pricing.
The news: Merck is teaming with McKinsey for a generative AI (genAI) program that streamlines clinical study reports (CSRs). The takeaway: GenAI is ideal for time-intensive precise medical writing and frees content creators for oversight and strategic tasks. While Merck and some others are already using it for regulatory filings, those who stall or keep their pilots in the experimentation phase risk losing valuable time-to-market advantages.
The news: CVS’s Q2 earnings topped estimates, buoyed by solid performance in its retail pharmacy segment and signs that its health insurance division is finally turning things around. Our take: CVS may not be thriving compared with earlier in the decade, but it’s in a good position relative to most of its rivals. That’s largely because of its diversified footprint across healthcare (pharmacy, insurance, PBM) that prevents the company from being overexposed in one struggling sector. CVS’ ongoing company turnaround could be a good sign for the similarly structured UnitedHealth, DOJ investigations notwithstanding.
The news: More than 60 healthcare and technology players, including Amazon, Apple, Google, UnitedHealth Group, and OpenAI, signed a voluntary pledge put forth by the Trump administration to make it easier for consumers to access their medical data. Our take: It’s not the first time that industry players have pledged to improve health data sharing—but we haven’t seen enough progress due to a lack of accountability or enforcement. Many consumers also likely have concerns about how tech companies will use and protect their personal information.
The news: The trade deal between the US and EU will include a 15% tariff on pharmaceuticals imported from Europe, the White House said. The final word: Pharma companies and industry trade groups had been holding out hope that their medicines imported to the US would be exempt from tariffs. Not getting that reprieve is a setback—but the 15% rate on its own could be seen as a decent outcome, particularly considering that 200% tariffs were threatened and the Section 232 investigation could lead to a higher levy in other countries.
The news: HHS Secretary Robert F. Kennedy Jr. is expected to remove all 16 members of a task force that advises the government on preventive health services due to the committee being perceived as too “woke,” according to a report in The Wall Street Journal. Our take: A complete overhaul of another important panel of medical experts could reduce patient access to critical preventive care while confusing doctors about which guidelines to rely on—especially if Kennedy chooses replacements based on politics and like-minded beliefs rather than health expertise.
The trend: Hispanic and Black people are underrepresented in the clinician workforce compared to the broader US population, according to a KFF analysis of 2023 industry data. Our take: Diversity impacts where patients feel most comfortable seeking healthcare. Providers and marketers should invest in multilingual staff and partner with local community groups that have established relationships with diverse consumers.
The news: More than 90% of multicultural consumers use digital devices in their healthcare journeys, per a new Cadent Pharma Advertising Trends study. The takeaway: TV is still an important broad awareness media channel for pharma and healthcare companies. However, among growing diverse populations, digital and mobile advertising is more popular and spurs a desire for more information and purchasing. Marketers need to meet diverse audiences with educational and culturally relevant content.
As more consumers start GLP-1 treatments, some CPG brands must work harder to stay in shopping carts. As many GLP-1 users eat less and change their diets, it opens new challenges and opportunities for retailers and marketers.
The news: Prescription drugmakers can now apply for new Trump administration priority review vouchers that will cut drug approval times down from 10-12 months to just 1-2 months. Our take: Good faith commitments for US drug onshoring investments could translate to valuable advantages if those drugmakers can leverage those into a CNPV. But with so many pharma companies already in that pool, we expect this year’s winners to be drugmakers who can show real evidence of two, three or even all five priorities on the Trump administration list.
The news: Roche is considering a direct-to-patient (D2C) sales channel for its prescription drugs, CEO Thomas Schinecker said in its Q2 earnings call. Our take: The complex US healthcare PBM and insurance system can’t easily flip to a pure-play D2C prescription sales market. However, we think it will become a reliable channel, especially for self-pay patients. Pharma marketers can court them with special pricing deals, a la Lilly and Novo, but ensure they stay on the right side of regulators.
The news: AstraZeneca plans to invest $50 billion in US drug manufacturing and R&D by 2030. The big takeaway: Pouring billions into US builds isn’t an option for most generic drugmakers that operate on thin margins. This could result in shortages since companies that make generics may have to choose between exiting the market once tariffs take effect and raising prices when possible. Other players in this space might find it most beneficial to wait it out and see if Trump changes course yet again on tariff policy.
The news: Rare disease drugmaker Sarepta Therapeutics is pausing sales of a muscular dystrophy drug, Elevidys, after initially refusing an FDA request to halt sales due to safety concerns. The takeaway: Elevydis’ path to FDA approval was unconventional, but deemed appropriate at the time for a devastating disease. The new deaths and now paused sales serve as caution for both the FDA and drugmakers to balance the emotional sway of unmet medical needs with complete and continued clinical research.