Novartis CEO Joseph Jimenez said drugmakers must adopt new pricing models based on patient outcomes in order for European healthcare systems to remain solvent, according to the Financial Times. Jimenez told the newspaper that “if medicines do not have an effect [on patient outcomes], then those medicines deserve not to be reimbursed,” adding that this is “going to happen with or without us so we’d rather be part of the solution.”

Shire reportedly made a $18-billion bid to buy Swiss biotech Actelion, which turned down the informal offer. Both companies have declined to comment on the rumors first made in The Sunday Times. The deal reflects a 20% premium of Actelion’s stock value. Shire purchased NPS Pharmaceuticals in January for $5.2 billion.

Eli Lilly’s experimental basal insulin peglispro outperformed Sanofi’s best-selling insulin Lantus in terms of greater blood sugar reduction, according to data presented at the American Diabetes Association’s annual meeting on Saturday. While the drug boasted strong efficacy, safety concerns may be the key to its commercial viability. Patients taking peglispro had a significant increase in liver enzyme ALT and the therapy also raised the level of blood fat triglycerides in patients.

Orexigen and its marketing partner Takeda filed a lawsuit against Actavis to block a generic version of their weight-loss pill Contrave. The lawsuit alleges that Actavis infringed on patents for Contrave, according to Reuters. The diet pill came under fire recently when the company released skewed data on a safety trial evaluating whether the drug caused heart problems in patients.

ICYMI: Sprout Pharmaceuticals’ “female Viagra” drug flibanserin received an FDA panel nod recommending approval but it comes with a litany of unsettling side effects, according to Bloomberg Business. The drug reportedly can cause fainting and extreme sleepiness, a risk that is worsened if the patient is drinking alcohol or taking birth-control medicine. The news report also said the drug only “offered one more ‘satisfying sexual event’ a month than a sugar pill.” The FDA advisory panel—along with recommending the drug’s approval—also suggested that post-marketing surveillance be conducted to examine the drug’s safety effects.