Weight-loss drug prices prompt rethink of US health benefits
Among companies with 500 or more employees, 51 percent said they plan to increase cost-sharing for workers in 2026 — such as by raising deductibles or out-of-pocket maximums — up from 45 percent who plan similar increases in 2025.
Soaring costs of GLP-1 weight-loss drugs, such as Wegovy, are at the heart of employer concerns. According to Mercer, 77 percent of employers now rank Wegovy as a top cost concern.
"More clients are saying ... 'I don't know how much longer we can sustain covering these medications,'" said Alysha Fluno, a pharmacy innovation leader at Mercer.
While some companies initially offered coverage for GLP-1 drugs in hopes of lowering long-term health costs tied to obesity, surging prices are causing second thoughts.
"Some employers facing big cost increases in 2026 may feel this coverage is out of reach," Fluno said.
Competition from new drugs in the coming years may give pharmacy benefit managers (PBMs) more leverage to negotiate lower prices. The current GLP-1 drugs list costs over US$1,000 per month, though many insured patients pay less.
The Mercer report says prescription drug costs jumped eight percent last year, and overall health benefit costs are expected to rise 5.8 percent in 2025.
Employers are also rethinking their relationships with PBMs — middlemen between drugmakers and insurers — amid concerns over transparency and pricing practices. Thirty-four percent are considering switching PBMs, and 40 percent are exploring alternative drug pricing models.
The scrutiny follows regulatory criticism of major PBMs like CVS Caremark, Express Scripts, and Optum Rx for steering patients toward high-cost drugs — a claim the industry denies.
This week, CalPERS, one of the nation's largest public healthcare purchasers, announced it would switch PBMs in 2026, citing the need for better oversight and transparency.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Cision Canada
21 minutes ago
- Cision Canada
ESSA Pharma Inc. Provides Update on its Application to the Supreme Court of British Columbia for Approval of an Interim Order and Cash Distribution to Shareholders
SOUTH SAN FRANCISCO, Calif. and VANCOUVER, BC, July 23, 2025 /CNW/ -- ESSA Pharma Inc. (" ESSA," or the " Company") (NASDAQ: EPIX) today announced that, in connection with its previously announced business combination agreement with XenoTherapeutics, Inc. (" Xeno"), a non-profit biotechnology company, under which Xeno will acquire (the " Transaction") all of the issued and outstanding common shares of ESSA (the " Common Shares"), the Company intends to apply to the Supreme Court of British Columbia (the " Court") on August 5, 2025 for (i) an interim order authorizing the holding of a special meeting to consider and approve the Transaction (the " Interim Order") and (ii) for an order authorizing the Company to make an initial cash distribution to its shareholders prior to the closing of the Transaction (the " Distribution Order" and together with the Interim Order, the " Orders"). ESSA is applying for the Distribution Order in order to expedite the distribution of cash to ESSA shareholders prior to the closing of the Transaction. In total, with the initial cash distribution, if authorized, and the cash payable upon closing of the Transaction, each ESSA shareholder is currently estimated to receive approximately US$1.91 per Common Share, exclusive of any contingent value rights payments shareholders are entitled to receive pursuant to the Transaction. The hearing for the Orders will take place at the courthouse of the Court at 800 Smithe Street, Vancouver, British Columbia at 9:45 a.m. (Pacific time) on August 5, 2025, or as soon thereafter as counsel may be heard, or at any other date and time and by any other method as the Court may direct. Any person that may be affected by any of the Orders sought may appear or be represented to present evidence or arguments at the hearing of the application for the Orders. The Supreme Court Civil Rules set out the prescribed forms for a Response to Petition (Form 67) and Affidavit (Form 109) to be filed with the Court. Response materials should also be sent to ESSA's counsel by mail or courier c/o Blake, Cassels & Graydon LLP, 1133 Melville Street, Suite 3500, The Stack, Vancouver, BC V6E 4E5 attention: Alexandra Luchenko, or by email to [email protected]. In accordance with the Rules of Court, ESSA intends to file its Petition Record on July 31, 2025, one full business day prior to the hearing. Response materials should be received by ESSA's counsel at the above address on or before 1:00 p.m. (Vancouver time) on July 31, 2025 to be included in the Petition Record. About ESSA Pharma Inc. ESSA is a pharmaceutical company that was previously focused on developing novel and proprietary therapies for the treatment of patients with prostate cancer. For more information, please visit Forward Looking Statements This communication, and any related oral statements, contains certain information which, as presented, constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities laws (collectively, " forward-looking statements"). Forward-looking statements include, but are not limited to, statements that relate to future events and often address expected future business and financial performance, containing words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions and include, but are not limited to, statements regarding the proposed timing and completion of the Transaction, the amounts payable under the Transaction; ESSA's application to the Supreme Court of British Columbia for a reduction of capital and cash distribution prior to the closing the Transaction; the timing and receipt of securityholder, regulatory and court approvals of the Transaction; the satisfaction of the conditions to the completion of the Transaction and other statements that are not statements of historical facts. In this communication, these forward-looking statements are based on ESSA's current expectations, estimates and projections regarding, among other things, the expected date of closing of the Transaction and the potential benefits thereof, its business and industry, management's beliefs and certain assumptions made by ESSA, all of which are subject to change. Forward-looking statements are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of ESSA to control or predict, and which may cause ESSA's actual results, performance or achievements to be materially different from those expressed or implied thereby, including the consummation of the Transaction and the anticipated benefits thereof. Such statements reflect ESSA's current views with respect to future events, are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by ESSA as of the date of such statements, are inherently subject to significant medical, scientific, business, economic, competitive, regulatory, political and social uncertainties and contingencies. In making forward-looking statements, ESSA may make various material assumptions, including but not limited to (i) the completion of the Transaction on anticipated terms and timing, including obtaining required securityholder, regulatory and court approvals, and the satisfaction of other conditions to the completion of the Transaction; (ii) potential litigation relating to the Transaction that could be instituted by or against ESSA, Xeno, XOMA Royalty Corporation or their respective directors or officers, including the effects of any outcomes related thereto; (iii) the risk that disruptions from the Transaction will harm ESSA's business, including current plans and operations; (iv) the ability of ESSA to retain and hire key personnel; (v) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the Transaction; (vi) continued availability of capital and financing and rating agency actions; (vii) legislative, regulatory and economic developments affecting ESSA's business; (viii) the accuracy of ESSA's financial projections; (ix) general business, market and economic conditions; (x) certain restrictions during the pendency of the Transaction that may impact ESSA's ability to pursue certain business opportunities or strategic transactions; (xi) unpredictability and severity of catastrophic events, including but not limited to acts of terrorism, pandemics, outbreaks of war or hostilities, as well as ESSA's response to any of the aforementioned factors; (xii) significant transaction costs associated with the Transaction; (xiii) the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (xiv) competitive responses to the Transaction; (xv) the risks and uncertainties pertaining to ESSA's business, including those set forth in ESSA's Annual Report on Form 10-K dated December 17, 2024, under the heading "Risk Factors", a copy of which is available on ESSA's profile on EDGAR at and on SEDAR+ at and as otherwise disclosed from time to time on ESSA's EDGAR and SEDAR+ profiles; and (xvi) the risks and uncertainties that will be described in the proxy statement and management information circular for the Company's securityholders filed with the U.S. Securities and Exchange Commission (the " SEC," and such statement, the " Proxy Statement") available from the sources indicated above. These risks, as well as other risks associated with the Transaction, will be more fully discussed in the Proxy Statement. While the list of factors presented here is, and the list of factors to be presented in the Proxy Statement will be, considered representative, no such list should be considered a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material impact on ESSA's financial condition, results of operations, credit rating or liquidity. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and ESSA undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as may be required by applicable United States and Canadian securities laws. Readers are cautioned against attributing undue certainty to forward-looking statements. Important Additional Information and Where to Find It In connection with the proposed Transaction between ESSA, Xeno and XOMA Royalty, ESSA will file with the SEC the Proxy Statement, the definitive version of which will be sent or provided to ESSA securityholders. ESSA may also file other documents with the SEC regarding the proposed Transaction. This document is not a substitute for the Proxy Statement or any other document which ESSA may file with the SEC. INVESTORS AND SECURITYHOLDERS ARE URGED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and securityholders may obtain free copies of the Proxy Statement (when it is available) and other documents that are filed or will be filed with the SEC by ESSA through the website maintained by the SEC at on SEDAR+ at ESSA's website at Participants in the Solicitation ESSA and certain of its directors and executive officers may be deemed to be participants in the solicitation of proxies from ESSA's shareholders in connection with the proposed Transaction. Additional information regarding the identity of the participants, including a description of their direct or indirect interests, by security holdings or otherwise, will be set forth in the proxy statement and other materials to be filed with the SEC in connection with the proposed Transaction (if and when they become available). Information relating to the foregoing can also be found in ESSA's proxy statement for its 2025 annual meeting of shareholders, which was filed with the SEC on January 22, 2025 (the " Annual Meeting Proxy Statement"). To the extent holdings of securities by potential participants (or the identity of such participants) have changed since the information printed in the Annual Meeting Proxy Statement, such information has been or will be reflected on ESSA's Statements of Change in Ownership on Forms 3 and 4 filed with the SEC. You may obtain free copies of these documents using the sources indicated above. or / Dan Moore [email protected] SOURCE ESSA Pharma Inc.
Globe and Mail
21 minutes ago
- Globe and Mail
US Tractor Market Sales to Reach USD 245.05 Thousand Units by 2030: Amid Surge in Precision Farming and Green Fuel Adoption
"US Tractor Market Research Report by Arizton" Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast 2025–2030. According to focus report store, the U.S. tractor market is growing at a CAGR of 2.03% during 2024-2030. This growth is fueled by advances in mechanization, the adoption of precision farming technologies, and supportive government policies. Emerging technologies such as real-time data monitoring, GPS, and smart sensors are enabling farmers to enhance efficiency and productivity. In addition, ongoing labor shortages and government initiatives to increase agricultural output are encouraging greater investment in modern tractors. Report Summary Market Size (2030): 245.05 Thousand Units Market Size (2024): 217.20 Thousand Units CAGR (2024-2030): 2.03% Historic Year: 2021-2023 Base Year: 2024 Forecast Year: 2025-2030 Market Segmentation: Horsepower, Drive Type, And Geography Geographic Analysis: Northeast, Midwest, Southwest, West, And Southeast US Tractor OEMs Adopt Multi-Fuel Strategy to Meet Sustainability Targets Sustainability targets and evolving emission regulations are reshaping the US tractor market, pushing manufacturers to expand electric and alternative fuel offerings to meet demand for cleaner, more efficient machinery. Major players such as New Holland, John Deere, and Case IH are rolling out electric tractors, with Case IH's Farmall 75C already active and New Holland developing an electric T4 with autonomous capabilities. At the same time, alternative fuel solutions are gaining traction, Kubota plans to launch hydrogen-powered fuel cell tractors in 2025, while New Holland is preparing to introduce natural gas and methane-powered models. This shift marks a significant step toward reducing agriculture's carbon footprint and signals how OEMs are aligning innovation pipelines with the broader push for sustainable farming across the US. Smart Tractor Adoption Gains Momentum, Enhancing Precision and Efficiency in US Farming Adoption of smart tractors in the US is gaining momentum as farmers respond to rising pressure to increase yields, cut costs, and meet stricter sustainability targets. Modern tractors now integrate GPS, sensors, AI, and telematics systems that provide real-time insights into machine performance, fuel use, and field operations, helping farmers optimize fleet management, reduce downtime, and extend equipment life. Leading players such as Kubota and Yanmar are expanding their smart machinery portfolios to meet this demand, Kubota's tractors use telematics for theft prevention, predictive maintenance, and operational monitoring, while Yanmar is advancing electric agricultural machinery focused on zero-emission solutions and higher fuel efficiency. As farms face tighter margins and evolving environmental regulations, smart tractors are set to play a critical role in modernizing operations and supporting the industry's broader shift toward precision and sustainable farming in the years ahead. US Tractor Market: Key Developments Recent developments in the US tractor market highlight how leading OEMs are advancing smart technologies, automation, and operator-focused innovations to strengthen their competitive edge and meet evolving farming challenges. In February 2025, Kubota Corporation launched the FARMTRAC PROMAXX Tractor Series, featuring enhancements such as the Smart Pro Lift Switch, best-in-class hydraulics with helical gears and advanced lubrication, as well as improved operator comfort through upgraded floor mats and ergonomic seating. This launch reinforces Kubota's position in delivering high-performance, operator-friendly machinery. In 2024, AGCO acquired an 85% stake in Trimble Inc. for USD 2 billion, forming a joint venture aimed at accelerating the development of autonomous technologies and other advanced solutions for farm equipment. In 2024, AGCO also introduced the new S7 Series combines and updated 9RX tractors, designed to boost customer value and tackle key agricultural challenges such as labor shortages, variable weather, and rising operational costs. The S7 Series includes advanced automation packages, while the updated 9RX tractors feature new engine options to expand their appeal in the market. Regional Analysis: US Tractor Market Outlook The US tractor market is shaped by distinct regional characteristics that determine demand for modern equipment and mechanization solutions. In 2024, the Midwest remained the largest regional market, accounting for approximately 27% of total demand. Strong production of corn, soybeans, and wheat, supported by fertile soil and stable rainfall, drives consistent investment in high-capacity tractors and precision equipment. The Southwest market is expected to expand at a CAGR exceeding 2% between 2025 and 2030. Cotton production across Texas, Arizona, and New Mexico, along with specialty crops such as New Mexico's Hatch green chiles, continues to support steady equipment upgrades as farms prioritize productivity and cost control in a climate-challenged region. The Western US captured a significant market share in 2024, led by high-value crops such as almonds, grapes, and other specialty fruits and nuts. Reliance on irrigation to offset low rainfall keeps demand stable for efficient, reliable tractors and advanced attachments. The Northeast sustains tractor demand through a strong dairy sector, particularly in New York and Vermont, where modern equipment supports feed, hay, and farm management operations. The Southeast, which recorded sales of around 19,000 units in 2024, benefits from favorable soil and warm weather that enable diverse crops including cotton, peanuts, tobacco, and soybeans. Key Company Profiles AGCO Corporation CNH Industrial N.V. Deere & Company KUBOTA Corporation Other Prominent Company Profiles YANMAR HOLDINGS CO., LTD JCB Antonio Carraro Action Construction Equipment Ltd. CLAAS KGaA Deutz-Fahr ISEKI & CO.,LTD KIOTI Daedong-USA, Inc TAFE Jiangsu Yueda Intelligent Agricultural Equipment Co., Ltd. SOLIS LOVOL Sonalika Market Segmentation and Forecast Segmentation by Horsepower Less Than 50 HP 50-100 HP Above 100 HP Segmentation by Drive Type 2-Wheel-Drive 4-Wheel-Drive Segmentation by Geography The U.S. Northeast Midwest Southwest West Southeast Other Related Reports that Might be of Your Business Requirement U.S. Electric Tractor Market - Industry Outlook & Forecast 2024-2029 U.S. Tractor Tires Market - Industry Analysis & Forecast 2024-2029 What Key Findings Will Our Research Analysis Reveal? What are the significant trends in the U.S. tractor market? Who are the key players in the U.S. tractor market? What is the growth rate of the U.S. tractor market? Which region dominates the U.S. tractor market share? How big is the U.S. tractor market? About Us: Arizton Advisory and Intelligence is an innovative and quality-driven firm that offers cutting-edge research solutions to clients worldwide. We excel in providing comprehensive market intelligence reports and advisory and consulting services. We offer comprehensive market research reports on consumer goods & retail technology, automotive and mobility, smart tech, healthcare, life sciences, industrial machinery, chemicals, materials, I.T. and media, logistics, and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts. Arizton comprises a team of exuberant and well-experienced analysts who have mastered generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.
CBC
22 minutes ago
- CBC
Is Canada-US free trade dead?
North American free trade is teetering on the edge of uncertainty as U.S. President Donald Trump's tariffs continue to complicate how goods come and go. Andrew Chang explores signs that free trade — as we've come to know it — is on its way out, and challenges that may lie ahead in renegotiating the Canada-U.S.-Mexico Agreement (CUSMA). Images provided by Getty Images, The Canadian Press and Reuters.
