Pharmaceutical Industry Sees New Hope Under Trump Administration
After four years of a hardline stance on the industry under former President Joe Biden, pharmaceutical companies are optimistic about their growth prospects under the new Trump administration. Lowering healthcare costs for Americans is a priority for President Trump, just like his predecessor. However, the industry expects a more pro-business approach from the new administration.
A Shift in Focus
Drugmakers hope Trump will focus on cracking down on pharmacy benefit managers (PBMs), rather than targeting the prices they charge. They also want to see changes to the Inflation Reduction Act, which aims to make medicines more affordable but is viewed as a threat to innovation and profits.
PBM Reform Tops the Agenda
Pharmaceutical companies are pushing for PBM reform, arguing that these middlemen overcharge insurance plans, underpay pharmacies, and fail to pass on savings to patients. The industry is “optimistic” about seeing PBM reform this year, with lawmakers from both parties concerned about their practices.
Three Key Reforms
The industry wants to see three key reforms: breaking the link between a drug’s list price and how PBMs are compensated, ensuring rebates reach patients at the pharmacy counter, and increasing transparency around the PBM business model.
Revising the Inflation Reduction Act
The pharmaceutical industry is also hopeful that Trump could work with Congress to revise the Inflation Reduction Act, which allows Medicare to negotiate drug prices with manufacturers. However, dismantling or scaling back the law would be difficult, and the industry will continue to fight it in court.
Uncertainties Around RFK Jr.
The industry is uncertain about how Robert F. Kennedy Jr., Trump’s pick to lead the Department of Health and Human Services, will shape the government’s health priorities. Kennedy’s anti-vaccine views are a concern, but the industry is willing to work with him on other areas, such as tackling chronic diseases.
A New Era of Cooperation
Despite uncertainties, pharmaceutical companies are ready to work with the Trump administration to promote drug innovation, improve patient access to treatments, and lower healthcare costs. As Pfizer CEO Albert Bourla said, “We have very productive engagements and we try to explain the positions, I think that are well-understood.”
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