Health Industry Shaken: Counterfeits, Lawsuits, and Drug Failures

The health sector faces numerous challenges, including counterfeit Ozempic, a Sandoz antitrust lawsuit against Amgen, Trump's impending pharmaceutical tariffs, biotech industry struggles due to policy uncertainty, and drug failures from Bristol Myers. Additionally, Bolsonaro recovers post-surgery, and Pfizer ends a weight-loss drug trial.

In alarming news for the pharmaceutical sector, Danish drugmaker Novo Nordisk revealed that hundreds of counterfeit injections of their diabetes drug Ozempic are circulating in the U.S., prompting an ongoing investigation by health regulators. The issue highlights significant vulnerabilities in the drug supply chain.

Meanwhile, Sandoz, a leading Swiss generic drug company, has launched an antitrust lawsuit against Amgen in the U.S. The legal battle centers on allegations that Amgen unlawfully manipulated patent rights to maintain the market dominance of its arthritis drug, Enbrel, thereby preventing the entry of more affordable biosimilars.

Further adding to the sector's turmoil, President Donald Trump announced plans to impose tariffs on imported pharmaceuticals. This announcement, paired with recent federal health agency funding cuts, has deepened concerns within the biotech industry. With many firms struggling financially, this has led to a sharp market downturn, as reflected in the declining S&P Biotech ETF index.

(With inputs from agencies.)