Pharma Shifts: New Deals and Controversies in the Health Sector

In a significant financial move, Arrowhead Pharmaceuticals has secured a nearly $2 billion agreement with Swiss giant Novartis, granting the latter an exclusive worldwide license to Arrowhead's experimental neuromuscular therapy. The therapy aims to address conditions like Parkinson's, prompting a 10.4% rise in Arrowhead's shares following this announcement.

Meanwhile, in oncology news, Zymeworks disclosed the cessation of its experimental cancer drug development after early trials indicated insufficient standalone efficacy. The Canadian company was exploring the drug's potential in treating ovarian and non-small cell lung cancers, with hopes of enlisting 160 participants in its study.

In administrative developments, a coalition of nine former CDC heads criticized Health and Human Services Secretary Robert F. Kennedy Jr.'s actions, alleging they jeopardize public health safety. Their concerns heightened after the controversial dismissal of CDC Director Susan Monarez and four other resignations amid the agency's ongoing turmoil.

Moreover, IQVIA Holdings has announced the appointment of Michael Fedock as its new Chief Financial Officer, effective February 2026, as incumbent CFO Ron Bruehlman retires. Elsewhere, Cigna's subsidiary Evernorth Health plans a $3.5 billion investment in Shields Health, augmenting its footprint in the burgeoning specialty pharmacy market.

In an unexpected political intervention, President Donald Trump has called upon pharmaceutical firms to substantiate claims of their COVID-19 drugs' efficacy, amidst divided opinions on their life-saving capabilities. Concurrently, Merck celebrates a milestone as its cholesterol medication meets key trial goals, offering a promising successor to its blockbuster drug, Keytruda, before its patent expiration.

(With inputs from agencies.)