From Quiver Quantitative: 2025-05-13 01:26:00

President Trump signed an executive order to lower U.S. drug prices to match foreign rates, threatening tariffs and empowering the FTC to investigate pricing practices. Major drugmakers like Merck, Pfizer, Gilead Sciences, and Eli Lilly saw stock rebounds as investors weighed the impact. The order demands price cuts of 59%–90%, tariff threats, and antitrust enforcement. Legal challenges are expected, and FTC hearings on patents will increase. The order aims to reduce drug prices significantly but faces opposition from industry groups and challenges in implementation and enforcement.

Legal experts warn that the order’s importation provisions exceed statutes, raising the likelihood of court injunctions. The pharmaceutical industry faces decisions on pricing, patents, and investments as the FTC plans listening sessions. The order’s success in achieving cost savings without hindering innovation will depend on regulatory and legal systems.



Read more at Quiver Quantitative: Trump’s “Most Favored Nation” Drug Pricing Order Faces Legal and Industry Pushback