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Help me understand something..re: Trump's Pharmaceutical EO

Posted on 5/12/25 at 9:44 am
Posted by Sterling Archer
Member since Aug 2012
8273 posts
Posted on 5/12/25 at 9:44 am
So Trump is going to sign an executive order for broad drug price cuts. LINK Politics aside If this actually goes through then that's a huge win for the American people!

I go look at a few pharma stocks to see the what their stocks are doing and they basically haven't moved or are green

Pfizer is actually up almost 3% today
Merck is up 4+%
Astrazeneca is green
Johnson and Johnson is only down .13%

What do they know that we don't know
Posted by bigjoe1
Member since Jan 2024
1568 posts
Posted on 5/12/25 at 10:09 am to
That Trump tried a version of this his first term and courts shot it down.
Posted by tigeraddict
Baton Rouge
Member since Mar 2007
14493 posts
Posted on 5/12/25 at 10:25 am to
Not sure want the market is seeing. Maybe this gives Pharma cover against other nations that are trying to set prices on their end. If Pharma is forced to have one price for a product to all, then it may prevent other countries from capping prices.....


Just a wild guess on my end though.....
Posted by HogPharmer
Member since Jun 2022
3484 posts
Posted on 5/12/25 at 10:30 am to
Nothing will get truly fixed regarding drug prices until the government addresses PBMs in a big way.
Posted by frankthetank
Member since Oct 2007
2510 posts
Posted on 5/12/25 at 10:54 am to
I may be wrong but believe the EO only applies to those drugs that are covered under Medicare and in-office. It doesn't directly affect most prescriptions that are picked up at your local pharmacy.

Edit to add language about scope from chat gpt:

quote:

President Trump’s executive order signed on May 12, 2025, primarily targets drugs covered under Medicare, with a specific focus on those administered in clinical settings, such as infusions and injectables. This includes high-cost treatments for conditions like cancer and autoimmune diseases, which are reimbursed through Medicare Part B.

The executive order introduces a “Most Favored Nation” (MFN) pricing policy, aiming to align U.S. drug prices with the lowest prices paid by other developed countries. While the immediate effect is on Medicare Part B drugs, the order also directs the Department of Health and Human Services to explore extending similar pricing strategies to Medicaid.

It’s important to note that this policy does not directly apply to medications obtained through private insurance or those filled at retail pharmacies under Medicare Part D. However, the administration has indicated intentions to broaden the scope of the policy in the future, potentially encompassing a wider range of drugs and payment systems.


Also appears to be more directed at PBMs and not the drug manufacturers themselves.
This post was edited on 5/12/25 at 11:18 am
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