Hims & Hers Learns That Copy-Pasting Blockbuster Drugs Is Illegal, States Tax Themselves With Massive 340B Pharmacy Markups, and Cigna Fires 2,000 People for "Efficiency"

 Hey all, 

Happy Tuesday! Whether it’s Hims & Hers discovering that "innovation" isn't just a synonym for high-stakes patent infringement, or Cigna axing 2,000 employees to achieve an "efficiency" that smells suspiciously like a post-FTC-settlement panic, the industry’s commitment to the expensive shortcut remains unrivaled. Meanwhile, state governments find themselves in a bit of a mathematical pickle, inadvertently overseeing $1 billion in 340B markups on their own employee plans that make their own "cost-saving" networks look like a missed opportunity. Ultimately, these stories confirm that the modern healthcare business model is less about clinical outcomes and more about seeing how much friction—and cost—the system can endure before the wheels finally fall off.

Enjoy the rundown. 

Jacob Brody (Co-Founder and CEO ZorroRX) 

[Fierce Pharma] Hims retreats from weight loss pill launch as Novo, FDA pressure mounts

Hims & Hers has halted plans to launch a compounded oral semaglutide pill following a Department of Justice referral and a patent infringement lawsuit from Novo Nordisk. The retreat marks a significant escalation in regulatory enforcement against "illegal mass compounding," with the FDA and HHS now taking decisive steps to restrict active pharmaceutical ingredients used for unapproved copycat drugs. This clash highlights the utter absurdity of a telehealth startup thinking it could simply "Ctrl+C, Ctrl+V" a multi-billion dollar blockbuster drug and expect Novo Nordisk—and the federal government—to just look the other way while they played "pharmacy" with a global patent.

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[IQVIA] The Impact of 340B Pricing on State Employee Health Plans

This IQVIA study reveals that state employee health plans incur approximately $1 billion in annual upcharges due to 340B revenue generation, featuring a weighted average markup of 162% on self-administered medications. Furthermore, state plan patients are directly impacted by $44 million in annual out-of-pocket overcharges, often paying more at the pharmacy counter than the actual discounted 340B acquisition price. This redistribution of costs from manufacturers to state taxpayers and workers threatens the sustainability of public benefits and highlights a critical lack of transparency in how 340B revenue is utilized by providers; interestingly, while states are paying these premiums, many actually own the very 340B covered entities (like state university hospitals) generating the spread, suggesting they could significantly lower costs if they simply leveraged their own networks to drive state health plan spend through them rather than paying full retail plus elsewhere.

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[Modern Healthcare] Cigna to Reduce Global Workforce by 2,000 Positions

Cigna has announced plans to eliminate approximately 2,000 positions and offer voluntary retirement deals by the end of February as part of a strategy to increase operational efficiency. While the reductions account for less than 3% of the company's total staff, the organization has not specified which specific roles or departments will be impacted by the move. This restructuring follows a significant settlement with the Federal Trade Commission regarding Express Scripts, suggesting the company is tightening its belt to maintain earning potential amidst shifting regulatory landscapes. Surely these efficiency-driven cuts couldn't possibly be coming from the roles that support patient access, could they?

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