Turbulence in Health Sector: Lawsuits, Policy Shifts, and Discontinued Trials

The health sector faces upheavals as Sandoz files an antitrust lawsuit against Amgen over arthritis drug market monopolization. Meanwhile, Trump's health policies contribute to biotech struggles, with the industry hitting a nadir. Pfizer ends the development of weight-loss pill danuglipron due to safety concerns.

The health sector is amidst significant turbulence, highlighted by recent legal and policy developments. Swiss drugmaker Sandoz has initiated a U.S. antitrust lawsuit against Amgen, alleging monopolistic practices concerning their arthritis medication, Enbrel. Sandoz claims Amgen has unlawfully maintained its market dominance by preventing more affordable biosimilar competitors from entering the fray.

In parallel, the biotech industry is feeling the impact of policy uncertainties under the Trump administration. Drastic cuts across federal health bodies are compounding challenges for biotech companies, particularly those without market-ready products, as they face increased difficulties in gaining regulatory approvals. The S&P Biotech ETF index has reached an 18-month low, indicating diminished investor confidence.

Further adding to the sector's woes, Pfizer has terminated the development of its weight-loss drug, danuglipron. The decision follows a clinical trial in which a participant suffered potential liver injury—raising safety concerns. Pfizer had already abandoned an earlier twice-daily version of the drug due to similar side effects.

(With inputs from agencies.)