President Donald Trump said on Sunday evening that he would sign a decree on Monday to reduce the cost of prescription drugs in the United States, shake a powerful industry and shake the stock markets in Asia.
Publication on Social truthThe president promised that the order, due to 9 a.m. to Washington on May 13, would reduce prices “almost immediately from 30% to 80%”. He said the policy would create a “most favored nation” rule, so America never pays more than that which obtains the lowest price for the same drug.
A similar idea stalled during Trump's first term after a fierce decline in drug manufacturers. This time, he said he was ready to face them. “The contributions of the campaign can do wonders, but not with me, and not with the republican party,” he wrote. “We are going to do the right thing, something that the Democrats have fought for many years.”
The Lobbies group in the Phrma industry, which led the previous resistance, did not respond to the requests for comments from the Financial Times. The group has long argued that the price ceilings would drain the money from research.
Trump dealt with the complaint directly, writing that companies “would say for years that these are research and development costs, and that all these costs were and would, without any reason, be carried by the” suckers “of America, alone.” He said that the new order means that the country “will finally be treated fairly”.
Republican leaders who promote a lighter regulatory approach have not yet responded publicly, but several higher legislators opposed the previous proposal when it was set up in 2020.
Shock waves spread to Asian pharmaceutical markets
The actions of the Japanese drug manufacturer Chugai Pharmaceutical Co. dropped up to 7.2% at the start of negotiation on Monday, their most steep slide in one month.
Daiichi Sankyo Co. and Takeda Pharmaceutical Co. Each has lost around 5%. In South Korea, SK Biopharmaceuticals Co., Celltrion Inc. and Samsung Biologics Co. all dropped more than 3%.
Analyst Hidemaru Yamaguchi at Citigroup Global Markets Japan Inc. said in a note This, although the legal path is “questionable”, the announcement is negative for the entire sector.
Companies that depend on the United States for a large share of income-such as Takeda, Astellas Pharma Inc. and Otsuka Holdings Co.-are particularly exposed, he added. Astellas and Otsuka 'actions have also exchanged below.
Investors fear that any American decision to press prices can cause more difficult talks in other countries and reduce beneficiary margins. The concern surfaces because many drug manufacturers are counting on American sales to finance high prices trials for cancer and new generation therapies.
The White House did not publish the full text of the command. Managers and lobbyists should study the language once it is published to see if it can be challenged in court.
For the moment, Wall Street and health care observers are waiting to see if Monday's signature triggers a long legal fight – or a quick gain for buyers at the pharmacy counter, for everyday American families.
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