Welcome back to Endpoints Weekly, thanks for starting your weekend with us. This week’s news was dominated by Robert F. Kennedy Jr.’s confirmation hearings to be HHS Secretary, as Kennedy faced two rounds of questions from multiple Senate committees. It’s looking like a vote will either pass or fail by the slimmest of margins, so keep tuning in to our coverage — and live blogs! — of President Donald Trump’s new administration.
Elsewhere in biopharma, earnings season started to get rolling in earnest, with some of the biggest companies like Roche, Novartis, AbbVie and more reporting full-year results from 2024. We’re expecting another big round of earnings next week from the likes of Merck, Pfizer, Eli Lilly and GSK, followed by much of the biotech world in the ensuing weeks.
We also had big news this week from Leerink, which is making a comeback after the Silicon Valley Bank fiasco, more developments on the Inflation Reduction Act with regard to President Trump’s HHS communications freeze as it continues to affect agencies, and some long-term MASH data from Akero.
Grab a coffee and take a load off as we get into the week’s biggest stories. —
Max Gelman
🏛️
Kennedy faced two hearings this week as the Senate took up
his nomination for HHS Secretary. The first, which took place Wednesday, was held by the Finance Committee that will ultimately decide whether he can advance to a full Senate vote to be confirmed. While he faced a grilling, Kennedy emerged relatively unscathed. He faced a second panel, held by the Health, Education, Labor and Pensions, or HELP, committee, in a courtesy hearing that will help inform the Finance Committee’s decision.
Thursday’s hearing was much more contentious
as Kennedy
repeatedly declined
to refute his past comments that vaccines cause autism, failed to explain the differences between Medicare Parts A, B and C and defended race-based conspiracy theories about how different “antigen levels” in a person’s immune system depend on their skin color and should impact vaccine schedules. And in
written answers
to follow-up questions from senators submitted Friday, Kennedy continued to avoid directly giving an answer on the debunked claim that vaccines cause autism.
Kennedy can’t lose more than three Republican votes
. The GOP currently has a 53-47 majority in the Senate, and all Democrats are expected to oppose him despite some early flirtations by Sens. Bernie Sanders (I-VT) and John Fetterman (D-PA) as potential crossover votes. (
Watch how Thursday’s hearing ended.
) Other senators who are likely, but not confirmed, to vote no are Susan Collins (R-ME), Lisa Murkowski (R-AK) and Mitch McConnell (R-KY), a polio survivor who voted against Trump’s pick for Secretary of Defense, Pete Hegseth.
Senator Bill Cassidy (R-LA) has emerged as the key vote
to confirm Kennedy. Not typically one to break ranks with his fellow Republicans, Cassidy is a longtime physician who sits on both committees that interviewed Kennedy and is chair of the HELP committee. Cassidy opened his remarks Thursday by lamenting how some of the Hepatitis patients he used to work with who died could have been saved if they’d received vaccines as infants. By the end, he said he was still “struggling” with his vote and told Kennedy he’d be reaching out to him over the weekend.
Kennedy appeared to shore up support from other undecided Republicans, however.
Senators James Lankford (R-OK) and Thom Tillis (R-NC) had earlier expressed reservations about voting for Kennedy. Lankford, who has called himself the “most pro-life senator,” said he was concerned over Kennedy’s past comments on abortion, while Tillis seemed hesitant over his anti-vaccine activism. But both asked friendly questions during their allotted times, and Tillis said afterward he’s leaning toward voting yes.
💵Earnings season is upon us.
Several drugmakers gave fourth-quarter updates this week,
including Roche
, which laid out its M&A strategy during a media call. CEO Thomas Schinecker highlighted the company’s recent Carmot and Poseida acquisitions as blueprints for future deals. And he said Roche would
look to China
as a source of “potential innovations that we could take over.”
Sanofi also hinted at M&A ambitions
during a
media call
on Thursday morning. “We have always been very active in the M&A space. We may be a bit more in the near future due to the fact that we have a strong balance sheet,” CFO François Roger said. CEO Paul Hudson said on a separate call that Sanofi would likely target preclinical and Phase 1 assets. But Roger added that the company “doesn’t feel any pressure to go crazy on M&A” and would be “very disciplined.”
Takeda’s longtime CEO Christophe Weber announced his retirement
in the company’s third-quarter earnings update this week. Julie Kim, current president of Takeda’s US business unit,
will take over
in June 2026 as the company’s first female CEO. Until then, Weber will continue to steer Takeda through a multiyear restructuring he announced last May. Teva also revealed a handful of
pipeline cuts
this week, including a Phase 3 treatment for a form of epilepsy.
AbbVie touted the success of Skyrizi and Rinvoq,
raising
its combined 2027 sales outlook for the two drugs by $4 billion. CEO Rob Michael
said the strategy
is expected to “drive a rapid return to growth for the company beyond Humira,” which faced its first biosimilar competition in 2023.
And Teva told
Endpoints News
it expects sales growth to continue for Austedo,
even after
it becomes subject to prices negotiated under the Inflation Reduction Act.
📂Leerink Partners is on a hiring spree
to
build out
its M&A practice. The investment bank has landed several veteran Wall Street dealmakers, and told Endpoints’ Andrew Dunn that it’s at a “distinct pivot point” in M&A.
Leerink reemerged
following the 2023 collapse of Silicon Valley Bank, which had acquired Leerink in 2019. Founder and CEO Jeff Leerink
bought the firm back
through bankruptcy proceedings. Now Leerink says it’s “at the strongest point in our history.”
💊The company’s stock price nearly doubled
on
new data
looking at its efruxifermin program in the severe form of MASH, showing a 24% benefit on fibrosis reduction over placebo in a crucial mid-stage trial. Elizabeth Cairns notes there’s nuance to these data, however, as they come from the higher 50 mg dose in the so-called completer analysis.
In the intention-to-treat analysis, the benefit over placebo shrank to 17%. That analysis counted the 47 patients who were dosed with efruxifermin but who had missing week 96 data as treatment failures. The drug could still get approved as there are still no treatments on the market for severe MASH, and this week’s data were nominally statistically significant.
CMS announced that it will consider “opportunities to bring greater transparency”
to the Medicare drug price negotiation process under the Inflation Reduction Act. It’s the first time the Trump administration
has commented
on how it plans to run the second cycle of negotiations, which begin in about a month. The administration said it is “committed to incorporating lessons learned to date from the program,” but also intends to give stakeholders the chance to “provide specific ideas to improve the negotiation program.”
🗓️Meanwhile, one February FDA advisory committee meeting has been canceled and another has been delayed
as the presidential transition continues. A Feb. 24 meeting to discuss a label expansion for Novartis’ Fabhalta
was canceled
, while a Feb. 5 meeting on opioids was postponed. The cause for the meeting changes remains unclear.
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