• District of Columbia: As the Iran war continues, there are growing concerns about the potential impact on the global supply chain. According to the Associated Press, the war has effectively closed the Strait of Hormuz, which is a critical trade route for oil, semiconductors, pharmaceuticals, and more. India is a major producer of generic drugs, which make up the vast majority of U.S. prescriptions, and could be significantly affected by trade disruptions. Currently, the impact on the pharmaceutical supply chain is limited, but experts say there could be greater delays and increased prices if the war continues. "If the instability really persists, you'll probably see lead times, transportation costs that can impact direct items that we need for our medicines, including the key starting materials into active pharmaceutical ingredients," said Gerren McHam, VP of external affairs at the API Innovation Center. "… This is a reminder of how exposed we are with our pharmaceutical supply chain, specifically generics; especially those key materials that go into those medicines. Because the real risk may not be today, but it raises a broader kind of bipartisan concern. The next event of disruption, if it's more concentrated or is a critical part of our supply chain, what will happen?" (Anderson, Associated Press, 3/4; Choi, The Hill, 3/29)
• Maryland: CMS recently announced a new model called the Accelerating State Pediatric Innovation Readiness and Effectiveness Model (ASPIRE) designed to support whole-person care for enrollees in Medicaid and the Children's Health Insurance Program up to age 21. ASPIRE, which is a voluntary program, will run for 10 years, and up to five states are eligible to participate. Later this year, CMS will release a Notice of Funding Opportunity to solicit requests for participation. The model aims to support children and young adults who have or are at risk of developing complex medical and behavioral needs through early identification and intervention. Under the model, Medicaid providers will focus on care coordination and physical and behavioral health services and be accountable for quality and cost of care. (Ruder, Becker's Hospital Review, 3/24)
• New Jersey: Merck has agreed to acquire cancer biotech company Terns Pharmaceuticals for a cash value of almost $6 billion. Some of the medications Terns has in development include pills for cancer, obesity, and metabolic liver diseases. One of the company's most promising treatments is a pill to treat chronic myeloid leukemia, a type of blood cancer. If the treatment, which is currently known as TERN-701, is shown to work safely, Merck could get a boost to its revenue for cancer treatments as it prepares for the loss of patent protection on Keytruda, its top-selling cancer immunotherapy. According to Merck CEO Robert Davis, the Terns acquisition reflects the company's "commitment to acting decisively when compelling science and value align and our confidence in the benefits TERN-701 will bring to patients while generating value for our shareholders over time." (Loftus, Wall Street Journal, 3/25; Ohlen/Peebles, CNBC, 3/25)

Get practical guidance to help supply chain leaders modernize purchasing strategies amid margin pressures, policy volatility, and rising drug and supply costs.