Trump's Executive Order Targets Pharma: A Push for Global Drug Price Parity
President Donald Trump signed an executive order to lower U.S. drug prices by aligning them with international rates, a move seen as challenging to enforce. Amid this, drugmakers like Grifols see increased profits, while Novartis vows to continue making malaria drugs despite uncertain orders. Pharma stocks initially fell but rebounded.
In a bold move to address pharmaceutical costs, U.S. President Donald Trump has signed an executive order mandating drugmakers to reduce their prices to match those of other wealthy nations. While the directive sets ambitious price targets for the next month, experts warn that implementation could face significant legal hurdles.
Despite the challenging landscape, companies like Grifols remain optimistic, with the Spanish drugmaker reporting a near tripling of profits, reinforcing its outlook for 2025. Concurrently, Novartis pledges commitment to manufacturing essential medicines for malaria, even amid aid cuts and global financial constraints.
Meanwhile, U.S. drug stocks initially plummeted due to Trump's announcement but quickly recovered as analysts suggested the executive order's practical challenges may mitigate immediate impacts. As the healthcare sector navigates these changes, the order underscores the ongoing debate over pharmaceutical pricing and global health equity.
(With inputs from agencies.)
Google News