From Financial Modeling Prep: 2025-05-12 07:32:00

President Trump signed an executive order to link U.S. prescription drug prices to global rates, aiming for cuts of 30%-80% immediately. The “Most Favored Nation” policy will cap Medicare drug prices at the lowest paid by any peer nation, impacting biologics and small-molecule therapies.

Pharma companies facing 5-10× higher U.S. prices than international peers may see profit erosion and earnings revisions for 2025-26. Strategic responses like M&A, buybacks, or pipeline accelerations are expected to counter pricing impacts.

Monitoring regulatory guidance from HHS and CMS, legal challenges, and Q2 earnings calls will be crucial as the pharmaceutical sector adjusts to the new pricing model. Utilizing APIs for analyst recommendations and earnings calendars can help investors stay informed on industry developments.



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