Lilly weight loss results | Merck beats | Medicare grilled on Alzheimer’s

VIEW IN BROWSER | SUBSCRIBE Fri, Apr 28, 2023 EDITOR'S NOTE Think a friend or colleague should be getting this newsletter? Share this link with them to sign up.   Eli Lilly's obesity drug tirzepatide demonstrated powerful results in clinical trial data released this week. The injection resulted in substantial weight loss of up to 34 pounds in overweight and obese people with Type 2 diabetes.    Lilly's injection and rival treatments made by Novo Nordisk could fundamentally change how people lose weight. But critics worry the drugs will contribute to a toxic diet culture that worships thinness.    Lilly plans to complete its application for FDA approval in the coming weeks. The drug is currently approved under the brand name Mounjaro to treat Type 2 diabetes.    Lilly missed its earnings estimates for the first quarter, but raised its full year sales and profit guidance. Merck beat the Street's expectations, but revenue fell year over year as sales of its Covid-19 antiviral pill molnupiravir plunged.   In regulatory news, the federal official who oversees Medicare, Chiquita Brooks-LaSure, faced a grilling from Congress over the program's controversial coverage policy that is keeping new Alzheimer's treatments such as Leqembi out of the hands of seniors.    And the FDA approved Biogen's ALS drug that treats a rare and aggressive form of the disease. Feel free to send any tips, suggestions, story ideas and data to me at spencer.kimball@nbcuni.com. Spencer Kimball | Health Reporter @spencekimball Spencer Kimball | Health Reporter @spencekimball Eli Lilly's drug tirzepatide resulted in weight loss of up to 34 pounds Patients who took Eli Lilly's weight loss drug tirzepatide lost up to 34 pounds on average, or 16% of their body weight, the company said in clinical trial results released Thursday.   The phase three trial followed 938 adults who were overweight and had Type 2 diabetes.    Lilly plans to complete its application for Food and Drug Administration approval of the drug in the coming weeks and expects regulatory action as early as later this year   - Annika Kim Constantino, Spencer Kimball Market for weight loss drugs is growing — and calls for insurance coverage This spring UnitedHealthcare and Anthem said they're seeing more demand for diabetes management drugs for weight loss.   Demand and pressure to cover the drugs is likely to grow, with Eli Lilly presenting new data showing its Mounjaro helped obese patients shed 16% of their weight over 18 months.   With more than 40% of Americans classified as obese - over 100 million people - analysts say the market for these drugs could top $50 billion a year.    Bear in mind the CDC estimates co-morbidities among the obese in this country now account for nearly $150 billion annual health care costs. - Bertha Coombs Medicare will cover Leqembi for all patients if FDA approves drug, CMS chief says Medicare will cover the new Alzheimer's treatment Leqembi for all patients eligible under the medication's label if the FDA fully approves the drug in July, a federal official told members of Congress on Wednesday.   The official, Chiquita Brooks-LaSure, faced pointed criticism from Democrat and Republican members of the House Subcommittee on Health over Medicare's controversial coverage policy for new Alzheimer's treatments.   Brooks-LaSure said patients will participate in federally approved "registries" that collect data on the drug after the treatment receives full approval.   Brooks-LaSure said these registries will not limit access. But the Alzheimer's Association has said they will do just that, and is calling for Medicare to drop that requirement.  - Spencer Kimball Merck results beat expectations despite a big drop in sales of Covid antiviral treatment Merck managed to top Wall Street's expectations on Thursday despite a dramatic drop in sales of its Covid antiviral treatment molnupiravir.   Sales of molnupiravir plunged to $392 million during the period, down 88% from the $3.2 billion reported for the first quarter of 2022. But the company reported $1.40 in adjusted earnings per share, eight cents more than anticipated by analysts polled by Refinitiv.   Revenue also beat expectations, coming in at $14.49 billion against the consensus estimate of $13.78 billion. - Annika Kim Constantino Eli Lilly misses on earnings but raises full-year guidance Eli Lilly's first-quarter earnings missed expectations Thursday, but the pharmaceutical company raised its full-year guidance.   Eli Lilly raised its guidance for the year due in large part to the U.S. dollar weakening against major currencies.   It said it expects revenue of between $31.2 billion and $31.7 billion, compared with its previous projections of $30.3 billion to $30.8 billion.   The company increased its adjusted earnings guidance to $8.65 to $8.85 per share for the year, up from $8.35 to $8.55. - Spencer Kimball FDA grants accelerated approval for Biogen ALS drug that treats rare form of the disease The Food and Drug Administration on Tuesday granted accelerated approval for Biogen's drug tofersen, which treats a rare and aggressive form of the disease known as ALS.   ALS, commonly known as Lou Gehrig's disease, is a progressive and fatal neuromuscular disease that causes nerve cells in the brain and spinal cord to break down over time.    Tofersen specifically targets a form of ALS in people with mutations in a specific gene, which are passed down through generations within families. - Annika Kim Constantino   Mpox outbreak was wake-up call for smallpox preparation, vaccine maker Bavarian Nordic says The maker of the mpox vaccine is looking at ways to dramatically scale up its production capacity to prepare for a potential threat from smallpox.   Bavarian Nordic CEO Paul Chaplin said the rapid spread of mpox last year was a wake-up call for the company, which is based in Denmark.   "If it wasn't mpox but it was smallpox, we are completely at the wrong scale," Chaplin told CNBC in an interview.   "We're looking at ways we can dramatically change the way we manufacture to increase our scale," he said. - Spencer Kimball JOIN US REGISTER CONTRIBUTORS Bertha Coombs @berthacoombs Meg Tirrell @megtirrell Bertha Coombs @berthacoombs Meg Tirrell @megtirrell Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel   Digital Products Feedback Privacy Policy CNBC Events   © 2022 CNBC LLC. 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