In January, the pharmaceutical industry found itself in a mini-crisis following a press conference at the White House in mid-January. Just a few days following his Inauguration, Trump accused pharma companies of “getting away with murder,” citing “disasters” in their business practices, which include less domestic activity.
The result was the Standard & Poor’s 500 Index showing a staggering $24.6 billion drop in the nine largest pharma companies, including Pfizer, Johnson & Johnson, Merck, and Bristol-Myers Squibb. This all happened during Trump’s conference, which only lasted 20 minutes.
The highlights of Trump’s pharma discussion include lowering drug costs and bringing the drug industry back here domestically. However, it’s a viewpoint that has teetered throughout the election. Last Summer, Trump stated in the healthcare reform portion of his website that he had no qualms about utilizing foreign industries for cheaper drugs to import into the United States, provided they were safe.
By December, his tune changed to simply matters of price negotiation in an effort to bring down costs. And just a month later, his aim is to make the drug industry completely domestic, strengthening the bidding process for drug costs. Is the international plan no longer an option? Further, how will Medicare’s drug plans be handled when the U.S. government is prohibited from negotiating prices within that platform?
As President Trump plods forward but with a destiny uncertain for healthcare reform, the pharmaceutical industry will undoubtedly make its way to the table. Will the conclusion be definitive though or will it be based on which pharmaceutical company has the deepest pockets? Perhaps it will hold a mirror up to big pharma and they will begin regulating prices on their own. While none of the Big Nine appear to be suffering yet, $24.6 billion dollars in 20 minutes is nothing to scoff at.
