In a significant shift, Bausch Health has announced its withdrawal from Medicaid and the federal drug discount program known as 340B, effective October 1, 2023. This decision raises questions about the future participation of other pharmaceutical companies in these vital healthcare programs. The company disclosed its choice through a brief statement on its website but did not provide a detailed rationale for the exit.
A spokesperson for Bausch emphasized the firm’s commitment to patients, stating that its patient assistance program has been enhanced to offer zero out-of-pocket costs for covered medications and free home delivery services. This move comes as the pharmaceutical sector faces increased scrutiny and pressure to reduce drug prices, particularly from the previous administration, which has influenced pricing strategies, especially concerning Medicaid.
In another notable development, Eli Lilly has revealed a partnership with NVIDIA to create what they claim will be the most powerful supercomputer managed by a pharmaceutical company. This collaboration aims to leverage artificial intelligence in drug discovery, enabling Lilly to identify new drug molecules and significantly accelerate development timelines, which typically span several years.
Lilly plans to utilize the supercomputer’s capabilities for various projects, including clinical trials, manufacturing, and quality assurance processes. The technology will also assist in quality control through computer vision and utilize NVIDIA’s robotics technology for enhancements on production lines. The supercomputer will be located in an existing data center in Indianapolis, where Lilly is headquartered.
As the pharmaceutical industry navigates these transformative changes, both Bausch’s withdrawal from Medicaid and Lilly’s investment in AI technology reflect the ongoing evolution in healthcare delivery and drug development. With these developments, the landscape of pharmaceutical care continues to adapt amid changing regulations and technological advancements.
