Good morning, everyone, and welcome to another working week. We hope the weekend respite was relaxing and invigorating, because that oh-so-familiar routine of meetings, deadlines, and messages has returned. But what can you do? There is no pause button to stop the world from spinning. So this means one thing: time to dig in to the tasks at hand. To cope, we have fired up the coffee kettle and brewed yet another cup of stimulation. Our choice today is hot buttery rum. Meanwhile, we have assembled a menu of tidbits to help you get started. Hope your day is simply smashing and, as always, do keep in touch if something saucy arises. …
Cigna Group will eliminate prescription drug rebates in many of its commercial health plans in 2027, upending an opaque, controversial practice that has drawn the ire of President Trump, Bloomberg News tells us. The insurer will expand the rebate-free model to clients of its pharmacy benefits business starting in 2028. The plan to eventually phase out rebates more broadly portends a seismic shift in the flow of billions of dollars among drugmakers, insurers, and employers. Cigna said it aims to lower patient’ costs at the pharmacy counter with up-front discounts rather than rebates collected from drugmakers long after a medication is dispensed. The company, which has faced criticism over rebates for years, said it’s responding to changes in the marketplace, including the Trump administration’s efforts to lower prices in the U.S. Cigna aims to eventually do away with all that for its private prescription drug plans. People with high-deductible plans will see a 30% discount on average for brand medications.
Organon chief executive officer Kevin Ali resigned after an independent, internal investigation into sales to wholesalers of its Nexplanon contraceptive, the company said in a regulatory filing. The investigation found that certain wholesalers in the U.S. were asked to buy more of the product than they needed at various times between the end of the fourth quarter of 2022 and throughout most of 2025. The probe found the sales represented less than 1% of consolidated revenue for the year ended December 31, 2022 or December 31, 2024 as applicable, but enabled Organon to meet guidance and/or certain external revenue expectations. The board determined the sales practices were improper and certain prior statements were inaccurate or incomplete. The board maintained the findings, so far, do not require restating or revising any previously issued financial statements, but Organon is taking “remedial actions to improve its financial controls and address any material weaknesses.” The company also terminated employment of its head of U.S. commercial and government affairs, but there has been no finding that the chief financial officer was aware of the improper wholesaler sales practices.
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