BAF NEWS

White House Plans New Healthcare Cost Measures

A senior White House official signaled new steps to reduce healthcare costs in the coming weeks. The announcement also foreshadows more domestic travel by President Trump to promote the policy agenda. Reuters reports that some planned events may be indoors due to heightened security considerations.

Zoom in: The stated aim is to push additional affordability measures quickly, rather than wait for a broader legislative window. However, specific policy details remain under wraps for now. According to Reuters, timing references are framed as “days and weeks,” not months.

By the numbers:

• New cost measures: expected in “coming days and weeks.”
• Communications push: increased domestic travel to promote the agenda.

What’s next: Expect a steady cadence of announcements, not a single omnibus package. Still, the scale and durability of any savings will depend on the underlying policy mechanics and implementation timelines.

J&J Acquires Halda Therapeutics for $3.05 Billion

Johnson & Johnson agreed to buy Halda Therapeutics for $3.05 billion in cash. The deal adds Halda’s oral prostate cancer therapy, HLD-0915, to J&J’s oncology pipeline and is subject to antitrust clearance and other customary conditions.

Zoom in: Bloomberg frames the move as part of J&J’s broader repositioning as sales of a major psoriasis drug erode. Meanwhile, Halda brings both a clinical-stage asset and a platform approach that could complement J&J’s cancer portfolio. The company’s official statement confirmed the price and closing conditions.

By the numbers:

• Purchase price: $3.05 billion cash.
• Lead asset: HLD-0915, an oral prostate cancer therapy in clinical stages.
• Closing: pending antitrust review and customary conditions.

The upshot: J&J is paying up for oral oncology optionality and speed to clinic. Yet integration risks, regulatory review, and clinical outcomes will ultimately determine whether this becomes an accretive cornerstone or a pricey hedge.

Milliman Proposes Healthcare Inflation ETFs

Milliman filed to launch two exchange-traded funds aimed at tracking or hedging employer-sponsored healthcare cost inflation. The proposed funds, Milliman Healthcare Inflation Guard ETF and Milliman Healthcare Inflation Plus ETF, would be guided by Milliman’s predictive models built on insurance claims and medical usage data.

Zoom in: Employer health costs are volatile and often lag broader CPI measures. Therefore, financial tools that map to benefit-spend dynamics could appeal to CFOs and benefit managers seeking budget stability. However, the novelty of these products introduces model and tracking risk.

By the numbers:

• New funds: Healthcare Inflation Guard and Healthcare Inflation Plus.
• Approach: proprietary models using claims and utilization data.

The upshot: If approved, these ETFs could create a new hedging lane for self-insured employers and multiemployer plans. Still, basis risk, how closely the ETF aligns with a specific employer’s cost profile, will be a central adoption hurdle.

NIH Grant Cuts Disrupt Hundreds of Clinical Trials

A Harvard analysis found that NIH grant cuts disrupted 383 clinical trials this year, affecting more than 74,000 patients. Prevention and infectious-disease trials were among the hardest hit, according to Bloomberg.

Zoom in: Trial interruptions can delay evidence generation and patient access to investigational therapies. Consequently, downstream approvals and care guidelines may also see ripple effects. The analysis underscores the breadth of impact across therapeutic areas.

By the numbers:

• Trials disrupted: 383.
• Patients affected: 74,000+.
• Most affected areas: prevention and infectious diseases.

The upshot: The near-term budget balance comes at the cost of delayed clinical knowledge and patient participation. Yet the long-term research gap will hinge on whether funding is restored or reallocated in the next budget cycle.

Novo Holdings Sells Major Stake in ConvaTec

Novo Holdings plans to sell 154.5 million ConvaTec shares, representing a 7.8% stake. The move trims a long-held position in the British medical products maker after the company guided to double-digit profit growth in 2026.

Zoom in: Novo has been ConvaTec’s largest shareholder since 2017 and previously held 21.3%. Therefore, this sale marks a notable shift in a patient, long-term investment. However, the timing, following upbeat guidance, suggests portfolio rebalancing rather than a negative view on near-term operations.

By the numbers:

• Shares to be sold: 154.5 million.
• Stake size: 7.8% of ConvaTec.
• Prior ownership: 21.3% in 2017.

The upshot: Investors may read the sale as housekeeping inside a mature health portfolio. Still, the reduced overhang could improve liquidity and broaden ConvaTec’s investor base over time.

Siemens Healthineers Reviews Diagnostics Business

Siemens Healthineers is evaluating strategic options for its Diagnostics unit, including a possible sale. The review follows Siemens AG’s plan to reduce its majority holding in Healthineers, and management is considering several future scenarios.

Zoom in: Diagnostics has faced margin pressure and shifting demand since the pandemic era. Consequently, a divestiture or partnership could reframe capital allocation and focus within Healthineers. However, potential buyers would also weigh integration complexity and the cyclical testing backdrop.

What’s next: Watch for clarity on scope, full sale versus partial transactions, and any associated timeline signals in upcoming disclosures. Ultimately, the decision could reshape competition and pricing across lab testing and adjacent markets.

By the numbers: Quick scan

• $3.05 billion: J&J’s cash price for Halda.
• 383 trials, 74,000+ patients: scale of NIH disruptions.
• 154.5 million shares, 7.8% stake: Novo’s ConvaTec sale.

The upshot: Policy actions, balance-sheet choices, and research funding realities are intersecting more tightly. Therefore, strategic hedges, targeted acquisitions, and careful budget signals will likely define the healthcare narrative into 2026.

What’s next: Track White House cost announcements, ETF approvals, and any Diagnostics deal steps. Additionally, watch for updates on trial funding as Congress and agencies navigate the next budget phase.