Health Sector Highlights: Key Developments and Updates

This summary covers key updates in the health sector, including Philip Morris's delayed launch of the IQOS device in the U.S., Robert Langer's departure from Moderna's board, UK approval of Novo Nordisk's Wegovy for reducing heart risks, and several other significant developments in pharmaceuticals, healthcare policies, and public health crises.

Philip Morris International has postponed the U.S. pilot launch of its IQOS heated tobacco device to the fourth quarter, leading to a lowered annual forecast for the sector. Originally set to start in Austin, Texas, during the second quarter, results for the previously scheduled launch were reported on Tuesday.

During a Congressional hearing, middlemen in the U.S. pharmaceutical industry defended their business model against accusations that they push patients toward costly treatments, despite available lower-cost alternatives. The House Committee on Oversight and Accountability's report earlier revealed that pharmacy benefit managers often force drugmakers to pay rebates for favorable placement of their branded drugs on insurance coverage lists.

Robert Langer, a co-founder of Moderna, will step down from the company's board on August 5. His exit marks a significant shift for the company, which has seen substantial scientific success under his tenure.

Novo Nordisk's weight-loss drug Wegovy has received approval from the UK regulator for its use in reducing severe heart risks in overweight and obese adults. This approval follows a similar one from the U.S. Food and Drug Administration in March.

The World Health Organization and UNICEF have urged Bosnian authorities to increase measles vaccination among children after two youths died from the infection. With over 7,000 estimated cases since last December, Bosnia leads the Balkans in the number of measles infections, far exceeding neighboring Montenegro, which only reported eight cases.

Merck reported that its antibody-based shot MK-1654 has been successful in reducing lower respiratory infections caused by respiratory syncytial virus (RSV) in infants. The mid-to-late stage trial met its main goals in terms of both safety and efficacy.

The World Health Organization warned of a high risk of polio virus spreading across Gaza due to poor health and sanitation conditions. Vaccine-derived poliovirus type 2 was found in environmental samples from Gaza's sewage.

Global pharmaceutical giants are increasingly eyeing deals in China, despite escalating Sino-U.S. tensions. Deals like AstraZeneca's $1.2 billion acquisition of Gracell Biotechnologies and Novartis' purchase of SanReno Therapeutics underscore the push to tap into the world's second-largest pharmaceutical market.

Novo Nordisk has acquired a 200-acre site in Odense, Denmark, for potential new production facilities. This move follows the significant success of its drugs Wegovy and Ozempic, making Novo the most valuable company in Europe last year.

Centene's forecasted second-quarter adjusted profit of $2.42 per share exceeded Wall Street expectations. However, the health insurer's forecast failed to impress investors after it announced it would not make a previously expected payment under a Medicaid-related 'risk adjustment' program.

(With inputs from agencies.)