Healthcare Shake-Up: US House Moves on Subsidies as Pharma Giants Make Strategic Shifts

The US House advanced legislation to reinstate healthcare subsidies amid political tensions. Eli Lilly expands its portfolio with a $1.2 billion acquisition, while J&J secures a drug price deal with the Trump administration. Numerous pharmaceutical and policy updates highlight ongoing healthcare industry dynamics.

In a significant political maneuver, the US House of Representatives, with a Republican majority, moved a Democratic bill forward that aims to reinstate lapsed healthcare subsidies. The goal is to address the country's affordability crisis in healthcare, as both parties compete for voter support ahead of November elections. The measure garnered bipartisan backing, with nine Republicans joining Democrats in support, setting the stage for a decisive vote.

Pharmaceutical giant Eli Lilly is set to acquire Ventyx Biosciences for $1.2 billion, marking a strategic shift beyond its successful diabetes and weight-loss medications. The acquisition aims to bolster its offerings in autoimmune treatments and underscores Lilly's aspirations to expand into diverse therapeutic areas.

In a notable policy shift, Johnson & Johnson reached a deal with the Trump administration to lower drug prices, aligning US healthcare costs with international standards. This agreement ensures tariff exemptions, as part of a broader initiative involving several pharmaceutical firms to reduce drug expenses for the Medicaid program and consumers.

(With inputs from agencies.)