Undersecretary for Health Marcello Gemmato announced a significant budget increase for the National Health Fund, with an additional 4 billion allocated this year. He emphasized the need for more resources to address the aging population and highlighted Italy's public health system's strong global ranking. The G7 Health event in Ancona aims to foster international dialogue on health care improvements, particularly in the wake of COVID-19.
The U.S. government is extending the negotiation process for drug price cuts under Medicare, allowing more opportunities for pharmaceutical companies to submit counter offers. The Centers for Medicare and Medicaid Services (CMS) will select the most expensive medications for negotiation by February 1, with new prices effective in 2027. Changes include earlier meetings with drugmakers and additional negotiation sessions to foster dialogue and potentially improve counteroffers.
As U.S. healthcare costs are projected to rise by 7.7% in 2025, employers are shifting strategies to enhance affordability without burdening employees. Over half plan to implement cost-reduction programs and explore alternative drug pricing, while 73% aim to carve out pharmacy benefits to manage expenses effectively. Key focus areas include obesity management, cancer care, and cardiovascular health, as companies seek innovative solutions to support workforce wellbeing.
The global telemedicine market is projected to exceed USD 14 billion by 2030, driven by the rising demand for regular health check-ups and the active participation of key industry players in innovation and partnerships. North America is expected to lead the market, with telemonitoring services showing significant revenue growth. Notable companies like Teladoc Health and Rudolf Riester GmbH are advancing the sector with new solutions, including AI-supported telemedicine tools and mobile clinics for remote areas.
Lombardy has been recognized as the best center for pharmaceutical manufacturing in Europe, scoring 9.7 in the CPHI European Manufacturing Rankings. The region is rapidly growing, competing with Germany in Active Pharmaceutical Ingredient production, and is a leading hub for advanced biologics, attracting significant global investment. Milan, hosting the CPHI event from Oct. 8-10, is set to gain over 120 million euros in local economic benefits, further solidifying its status as a key player in the pharmaceutical industry.
In Q3 2024, hospital merger and acquisition activity surged, with 27 transactions announced, the highest for that quarter since 2017, driven largely by the Steward Health Care bankruptcy. Total transacted revenue reached $13.3 billion, including four mega-mergers, as health systems adapt to community needs and financial challenges. Despite the high transaction volume, many struggling organizations face difficulties in finding partners, raising concerns about potential hospital closures.
Biocon Biologics has successfully priced its debut USD 800 million senior secured notes due 2029 at a 6.67% coupon, marking a significant milestone as the first USD bond issuance by a biopharmaceutical company in the Asia Pacific. The transaction, which is expected to settle on October 9, 2024, aims to refinance existing long-term debt of USD 1.1 billion, enhancing the company's financial flexibility and supporting its growth in the biosimilars market. The bond issuance received robust interest, with an oversubscription of over 3x, reflecting strong investor confidence in Biocon Biologics' credit profile and growth potential.
The U.S. healthcare industry is experiencing a slowdown in hospital mergers and acquisitions following the acute phase of the COVID-19 pandemic. Health systems are prioritizing operational efficiency and exploring partnerships or sales agreements to better serve their communities. Thorough due diligence is crucial to mitigate financial and regulatory risks during this process.
Gurbir Grewal, the director of the SEC’s Division of Enforcement, will resign from his position on October 11, 2024. He has led the division since August 2021 and previously served as New Jersey Attorney General. Sanjay Wadhwa, the current deputy director, will take over as acting director.
T-Mobile has reached a $31.5 million settlement with the FCC following multiple data breaches that compromised the personal information of millions of customers. The agreement includes a $15.75 million fine and an equal investment in cybersecurity improvements. The breaches affected approximately 37 million customers in January 2023, with previous incidents in 2022 and 2021 impacting 76 million accounts.
