JPM26: Paying cash for obesity drugs, renewed IPO optimism and pharma’s cell therapy view

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To receive daily news and insights, subscribe to our free daily BioPharma Dive newsletter. SAN FRANCISCO —The way many drugs are bought and sold could be changing.At J.P. Morgan this week, the heads of several large pharmaceutical companies pointed to online channels as an important driver of future product sales. These platforms are offering up medications for people willing to pay cash. And while most Americans receive drugs through health insurance, drugmaker CEOs contended that there’s ample demand for products that patients pay for directly.“I think it’s going to be a big part of our future,” said Eli Lilly CEO David Ricks, at the meeting.Ricks noted that the company’s own efforts began as something of a “skunkworks” project in obesity that’s since become more sophisticated. The lessons have been “profound,” he said, in terms of patients’ receptivity and desire for clarity about a drug’s price before buying. Lilly’s online pharmacy now serves 1 million people and is growing internationally. Ricks envisions that service eventually being important for other types of medications, too.He wasn’t alone, though. Novo Nordisk’s Mike Doustdar is pitching cash-pay services as an important part of his company’s strategy to grab an early marketing edge with oral obesity medications. And Pfizer CEO Albert Bourla noted how the budding opportunity made Metsera, which it paid $10 billion to acquire, more valuable.“We saw how big the cash market is” in obesity, Bourla said. “In our projections, we didn’t have that.” — Ben FidlerNovo Nordisk had a “difficult” year by many measures, its CEO Mike Doustdar acknowledged in a fireside chat at J.P. Morgan. While he didn’t recap the company’s downslide, the investors in the audience were surely aware of Eli Lilly’s growing command of the obesity drug market, Novo’s resulting shakeup, as well as its messy pursuit of Metsera.Doustdar, though, worked to assure investors that he’s righted the ship. Novo is currently ahead of Lilly in bringing the first oral GLP-1 drug for obesity to market. The drug, a pill form of Wegovy, was launched in the beginning of January. Novo may only have weeks before orforglipron, a similar, rival medication from Lilly, arrives as well.With that small lead, Novo is focusing on “commercial execution,” Doustdar said. 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