President Donald Trump signed an executive order on Monday to cut the costs of US prescription drugs Sunday night, saying he is shaking strong Asian industries and shaking stock markets.
Post The true societyThe president vowed that the order scheduled for 9am in Washington on May 13 would cut “from 30% to 80% almost immediately.” He said the policy would create the “most preferred nation” rule, so America would not pay more than earn the lowest price for the same drug.
A similar idea stagnated in Trump’s first terminology after a fierce backlash from drug makers. This time he said he was ready to stand up to them. “The campaign contributions can be amazing, but not me, not with the Republican Party,” he writes. “We’re going to do the right thing, something that Democrats have fought for years.”
The industry’s lobby group PhRMA, which led the previous resistance, did not respond to a request for comment by the Financial Times. The group has long argued that price caps drain money from research.
Trump directly addressed the claim, writing, “For years, companies would say it was research and development costs, and that all of these costs are supported by American “sucking cups” for anything.” He said the new order means that the country will “finally be treated fairly.”
Republican leaders who support a lighter regulatory approach have yet to respond publicly, but when it surfaced in 2020, several senior lawmakers opposed the previous proposal.
Shock waves spread across Asian pharmaceutical markets
Shares of Japanese drug maker Chugai Pharmaceutical Co. fell by 7.2% in early trading on Monday, with the steepest slide of the month.
Daiichi Sankyo Co. and Takeda Pharmaceutical Co. each lost about 5%. In Korea, SK Biopharmaceuticals Co., Celltrion Inc. and Samsung Biologics Co. fell by more than 3%.
Hidemaru Yamaguchi, analyst at Citigroup Global Market Inc. Notes That said, the legal pathway is “suspecting,” but the announcement is negative for the sector as a whole.
He added that companies, such as Takeda, Astellas Pharma Inc. and Osca Holdings, which rely on the US for a large percentage of their revenue, are particularly exposed. Stocks of Astellas and Otsuka also traded low.
Investors are worried that the US’s move to narrow prices could encourage tougher consultations in other countries and reduce profit margins. The concern is that many drug manufacturers rely on US sales to fund high-cost trials for cancer and next-generation therapies.
White House We have not released the full text of the order. Executives and lobbyists are expected to study language once they are published to see if they can be challenged in court.
For now, both Wall Street and healthcare watchers are waiting to see if Monday’s signature will trigger a long legal battle, or whether it will benefit quickly for shoppers at the daily American family’s pharmacy counter.
Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do that with Defi in future WebClass. Save your spot
