Trump Targets Pharmacy Benefit Managers in Bold Drug Pricing Reform

President Donald Trump on Monday announced a significant change to the structure of U.S. drug pricing by targeting private-sector middlemen in his new executive order. The move is designed to align U.S. drug prices more closely with those in other countries, notably in Europe.

Trump declared that middlemen would be removed from the equation, facilitating direct drug sales to American consumers at the 'most favored nation price.' This announcement led to a dip in the shares of companies involved in pharmacy benefit management, including CVS Health, UnitedHealth Group, and Cigna.

The executive order also pressures these companies, accusing them of contributing to high drug prices through hidden fees. Notably, firms like these are already facing regulatory scrutiny for their practices. The complex landscape of U.S. drug pricing may require further legislative action to ensure successful implementation.

(With inputs from agencies.)