In rolling out his plan to decrease prescription drug costs, President Trump might have walked softly and carried a giant stick. As pharmaceutical traders see it, he as an alternative stomped loudly and wielded a moist noodle.
Trump’s social media bluster that he would peg U.S. drug costs to these in different nations was sufficient to initially ship pharmaceutical and biotech shares down in Europe. However then particulars of the chief order the president signed helped drug firm shares finish the day up — by 4.4% on the American Inventory Change’s index of biotechs and a pair of.4% on its index of pharmaceutical shares.
That’s fairly shocking, as a result of the kind of coverage Trump has lengthy favored, often known as “most-favored nation” pricing, would set U.S. drug costs based mostly on what different developed nations pay. Since different nations pay rather a lot lower than the U.S., that will be fairly catastrophic for drug firms.
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