“Something has to be done here to take out these people that are just trying to make money,” Schinecker said, in reference to pharmacy benefit managers (PBMs). “It can’t be that 50% of profits go then to intermediaries that take zero risk.”
“We are beginning to see pharmaceutical manufacturers breaking away from supply chain middlemen (PBMs) saving consumers imbedded commissions (rebates) for savings of 40% and more. For example Novo Nordisk Direct and Lilly Direct offer certain GLP-1 drugs for $500 or less, a more than 50% price drop.” – Bill Rusteberg
Roche considering direct-to-patient sales in US to bypass intermediaries
By Matthew Dennis – July 24, 2025
Roche CEO Thomas Schinecker said Thursday that the price of drugs in the US could come down “quite quickly” if intermediaries were cut out and a direct-to-patient model was introduced. The executive indicated that the company is in talks with the US government over the issue, following similar recent moves by Eli Lilly, Novo Nordisk and Pfizer.
“Something has to be done here to take out these people that are just trying to make money,” Schinecker said, in reference to pharmacy benefit managers (PBMs). “It can’t be that 50% of profits go then to intermediaries that take zero risk.”
Roche is considering directly selling some of its medicines, including those for multiple sclerosis, eye disease and cancer, directly to patients, although Schinecker suggested that the model could work for all of its drugs. The executive cited the example of multiple sclerosis treatment Ocrevus, which he said had been hit with surcharges from PBMs that increased its cost even after Roche had priced it below competing therapies.
The pharmaceutical industry is hoping to see off the threat of dramatic price cuts under President Donald Trump’s proposed reforms, whilst also bracing for potential tariffs on medicines imported into the country. Schinecker indicated that Roche — which is in talks with the government over tariffs — has ramped up inventories: “In case tariffs will come, we would not be initially impacted.”
Roche is also one of a number of drugmakers that have pledged significant investment in the US, earmarking $50 billion over the next five years to boost manufacturing and R&D across both its pharmaceutical and diagnostics divisions in the country. “We hope that the US government, then also sees, with all the investments that we and other companies are making, that the companies are intending to produce the medicines that are needed in the US, for the US,” Schinecker said Thursday.
Outlook confirmed
Meanwhile, Roche also reported its latest financial results Thursday, with sales from prescription drugs rising 6% in the first half of the year to just under CHF 24 billion ($30.2 billion). Growth was driven by Phesgo, Xolair, Hemlibra, Vabysmo and Ocrevus, which together brought in CHF 10.6 billion in the six-month period, up by CHF 1.7 billion from the first half of 2024.
Overall sales climbed 4% to CHF 30.9 billion, while net income jumped 17% to CHF 7.8 billion. “We are confident in our continued strong momentum and resilience of our business due to our innovative on-market portfolio and pipeline,” Schinecker remarked.
He noted that the “strong results” prompted Roche to confirm its full-year outlook, with the loss of exclusivity on products set to have a negative impact of CHF 1 billion, less than the CHF 1.2 billion previously predicted. The company expects sales in 2025 to increase in the mid-single-digit range at constant currencies, with core earnings growing in the high-single digits.
TIGIT all over
Roche also disclosed that two Phase III studies of tiragolumab failed to meet their endpoints, marking the final nail in the coffin for the anti-TIGIT therapy. Having nosedived late last year in the final overall survival (OS) analysis of the SKYSCRAPER-01 trial for non–small-cell lung cancer (NSCLC), hopes for tiragolumab were riding on SKYSCRAPER-14.
However, the company said Thursday that the study, which investigated tiragolumab in first-line hepatocellular carcinoma, failed to meet its main goal of progression-free survival (PFS). Roche added that while OS data aren’t mature at this time, there is no trend of a survival benefit for tiragolumab.
The drugmaker also disclosed that SKYSCRAPER-03 — evaluating the anti-TIGIT therapy in Stage III unresectable, first-line NSCLC — failed to hit its primary endpoint of PFS.
Other early-stage pipeline updates include the termination of the anti-PD-1xIL-2v fusion protein eciskafusp alfa in solid tumours; the USP1 inhibitor RG6614, licensed from KSQ Therapeutics, also in solid tumours; and RG7921 for retinal vein occlusion.
Additionally, one of the obesity assets gained through the $2.7-billion acquisition of Carmot Therapeutics has been shelved. The PYY analogue CT-173 — though yet to enter the clinic — has been scrapped, with pharma division head Teresa Graham saying the decision was “based on a comprehensive assessment of its availability, competitive positioning and commercial viability.”
SOURCE: First Word Pharma
Your reading assignment for today: Another Pharma Mfg. Bypasses Middlemen – Costs Drop More Than 40%
