Drug price cuts: What is Trump planning and what will it mean for Big Pharma? | Pharmaceutical industry

What suggests Trump?

His order indicates the US Health Minister Robert Kennedy to send price goals to the pharmaceutical industry and start a round of negotiations within 30 days to reduce prices from its current level. The United States currently pays the most for its medication.

When talks meet a dead end, Kennedy will be instructed to enforce the “most preferred nation” price model and to limit the US prices to the lowest prices paid by other wealthy countries. At a press conference, the US President said that this would be a price reduction of between 59% and 90%.

Health officers said that in contrast to a similar advance in Trump's first term, the new politics not only Medicare, which covers the program financed by the US government, but also covers medicaid for people with low incomes and treatments that are covered by private health insurance.

Officials also said it was fair to assume that slimming drugs, which are known as GLP-1 such as Wegovy, Ozempic and Zepbound, are included. Trump mentioned the “Fat -Shot drug” and said that he became aware of the enormous price difference when a businessman told him that he bought Ozempic in London for $ 88 (£ 67), but paid $ 1,300 for it in New York.

Did we have been here again?

Trump's attempts in the last few months of his first term to reduce drug prices were reduced before a federal court. This “most preferred nation” plan would have determined refunds for 50 medication by Medicare to the lowest prices paid by certain other countries.

A federal judge blocked the move after deciding that the government had not given the public the chance to receive a comment. The bidet management has reduced the proposal under pressure from hospitals and pharmaceutical companies, but last year Medicare began to negotiate a few prizes as part of the law on inflation reduction.

How would the program work in practice?

There are not many details in the executive order, and it is unclear what effects it would have on millions of Americans with private health insurance. The federal government has the greatest power to influence the drug prices covered by Medicare and Medicaid.

Experts said that the new politics under pressure on the pharmaceutical service managers (PMB), the “middlemen” such as Cigna, CVS and Unitedhealth, which are negotiated with pharmaceutical prices with pharmaceutical companies in the USA. The White House wants medication manufacturers to sell more products directly to patients.

The main group of the US lobby, the pharmaceutical research and manufacturer of America (PhMRA), said that the USA was the only country in the world in which PMBS, insurers and hospitals were able to take 50% of all medication issued for medication, and that the amount that went to the medium to medium. “Giving this money directly to the patients reduce their medication costs and significantly reduce the gap at European prices,” it says.

The pharmaceutical industry will probably step down hard against the proposed skewer. The US Health Policy Research Group KFF told NBC News that “would expect the drug industry to bring every legal argument on this proposal”. Astrazeneca and the Wortove and Ozemian manufacturer Novo Nordisk, however, opened a conciliatory note and said they were dealing with political decision-makers.

What influence could it have?

The Medicare and Medicaid programs together make up two fifths of the US drug sales. UBS analysts calculated that European drug manufacturers could record an average hit of 6% to profits if the prices for “the most preferred nation” for the top 50 medication are introduced in the USA, while US companies would be traced by 10%.

Bristol Myers Squibb and Pfizer would be the least affected among the American pharmaceutical companies and Eli Lilly, while in Europe Astrazeneca and Novo Nordisk would take the main load and GSK and Sanofi would least suffer.

Phrma has warned that the planned price reductions would endanger the hundreds of billions [of dollars that] Our member companies plan to invest in America. “Winnings from the US drug prices have long contributed to financing the development of new treatments around the world.

In the past few weeks, large pharmaceutical companies have announced a flood of large investments that increase to almost $ 200 billion because they tried to relieve an endangered sector -specific tariff. Since the United States is still the largest market for most international drug manufacturers, it is unlikely that Trump's command will derail these investment plans.

How does drug prices work all over the world?

The governments determine the price of medication in Great Britain, the EU and other countries by negotiating pharmaceutical companies directly, and often pay less. The drug manufacturers offer dependent pricing, whereby the tariffs vary depending on the target country and larger discounts for poorer nations.

Wegovy has a list price of $ 1,349 for a month in the USA, while in Great Britain a start dose costs from £ 130 per month, and in Germany the drugs costs between € 170 (£ 143) and € 300 per month. Democratic Senator Bernie Sanders, a presidential candidate in 2020, called the USA as the “Cash Cows” by Novo Nordisk.

A study in 2021 showed that drug prices in the United States were “much higher” than in 32 other countries. Compared to all of these countries, the US prices were 256% higher.

What does this mean for endangered pharmaceuticals?

It seems that a sector -specific handover is off the table and products that have been spared 25% tariffs, which have used other sectors such as steel, aluminum and cars. Trump showed a delay at the beginning of this month and said that the US government would give companies “a lot of time” to bring their business into the country before being exposed to a “tariff wall”.