BioBucks Newsletter
CMS tees up a new GLP-1 payment model, Biohaven eats a Phase 2 miss, and J&J trims a $1.25B deal.
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Upfront Briefing
Washington kept the GLP-1 drumbeat going: CMS rolled out a new payment model that expands Medicare coverage for weight loss drugs. Meanwhile, Biohaven took a clinical gut check after its ion channel drug missed endpoints in a Phase 2 major depressive disorder trial. In deal land, J&J trimmed risk by dropping an eczema drug from a $1.25B acquisition after reported efficacy concerns.
Tape Action
| Instrument |
Last close |
1D % |
YTD % |
| S&P 500 |
6,929.9 |
0.0% |
17.8% |
| Nasdaq 100 |
25,644.4 |
0.0% |
22.0% |
| Russell 2000 |
2,534.4 |
(0.5%) |
13.6% |
| XBI (Biotech) |
125.0 |
(1.0%) |
38.8% |
| NBI |
5,809.3 |
(0.6%) |
34.8% |
| Clinical Trails ETF (BBC) |
39.6 |
(1.9%) |
65.2% |
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Biotech lagged: XBI (1.0%) and NBI (0.6%) were red while the S&P 500 was essentially flat.
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BBC was the standout mover on the downside, sliding (1.9%) on the day.
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Market data: US close Fri 26th Dec 2025.
The Big 3
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1
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CMS unveils new Medicare coverage model for weight loss drugs
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The Centers for Medicare & Medicaid Services (CMS) has introduced a new payment model that expands Medicare coverage for GLP-1s, potentially increasing access to popular weight loss medications.
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Why it matters:
If this model sticks, it’s a real wedge for Medicare reimbursement of obesity GLP-1s — expanding the reimbursed patient pool, shifting leverage in price/rebate negotiations, and forcing manufacturers to prove value under tighter utilization controls.
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Source:
Endpoints
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More:
PR
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2
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Biohaven's ion channel drug fails in major depressive disorder trial
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Biohaven's experimental ion channel drug did not meet its endpoints in a Phase 2 clinical trial for major depressive disorder, marking a setback for the company.
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Why it matters:
Another Phase 2 miss raises the bar for Biohaven’s near-term catalyst stack — and increases pressure to re-prioritize the pipeline (and spending) toward programs with cleaner efficacy signals.
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Source:
Endpoints
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3
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J&J removes eczema drug from $1.25B acquisition deal
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Johnson & Johnson has decided to exclude an eczema drug from its $1.25 billion acquisition, reportedly due to concerns over the drug's efficacy.
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Why it matters:
This is big pharma underwriting discipline in real time: when the clinical signal looks shaky, valuation gets reset fast — and it’s a reminder that “platform” excitement doesn’t survive weak dermatology efficacy.
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Source:
Endpoints
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Everything Else that broke
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Omeros gets first FDA approval for Yartemlea. — Fierce Pharma
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Arcadia Biosciences terminates business combination. — PR
Deal Flow
M&A / BD&L
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J&J removes eczema drug from $1.25B acquisition deal. — Endpoints
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Transcenta Therapeutics announces new collaboration. — PR
VC / Private Financings
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No notable VC / Private Financings since the last edition.
IPOs / Follow-Ons
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No notable IPOs / Follow-Ons since the last edition.
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A light news day. See you tomorrow! BioBucks Team
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