Israel warns of possible renewed campaign against Iran
Israel’s Defense Minister has raised the prospect of a renewed campaign against Iran, warning that Tehran must be prevented from reviving its nuclea...
President Donald Trump signed a new executive order aimed at aligning U.S. drug prices with those of other countries by removing private-sector middlemen from the system. While the move caused a drop in stocks, it promises significant changes for the pharmaceutical industry.
President Donald Trump took a significant step to address rising drug costs in the U.S. on Monday by signing an executive order aimed at removing private-sector middlemen from the pricing process. This move is designed to align American drug prices with those in other countries, which pay considerably less for the same medications.
The new order seeks to directly connect pharmaceutical companies with U.S. consumers, bypassing the intermediaries who often inflate costs through hidden discounts and administrative fees. In a press conference, Trump stated, "We’re going to cut out the middlemen and facilitate the direct sale of drugs at the most favored nation price, directly to the American citizen."
The United States currently pays about three times more for prescription drugs than other nations. Under the executive order, pharmaceutical companies will be required to charge similar prices in both the U.S. and Europe. Additionally, the U.S. Department of Health will establish a system that allows patients to purchase medications directly from manufacturers, potentially lowering costs significantly.
Pharmaceutical Stocks See Volatility
The announcement sent shockwaves through the stock market. Shares of major pharmacy benefit managers (PBMs) — CVS Health, UnitedHealth Group, and Cigna — all saw declines, with CVS down 5%, UnitedHealth dropping 0.5%, and Cigna falling 6%. These companies manage prescription drug plans for millions of Americans through their pharmacy benefit manager subsidiaries, Caremark, Optum Rx, and Express Scripts, respectively.
PBMs have long been under scrutiny for their role in driving up drug prices. The Federal Trade Commission (FTC) has already applied regulatory pressure on these firms, particularly over their pricing practices for insulin. Critics argue that PBMs’ hidden fees and rebates contribute to the high costs of medications by obscuring the true price consumers pay.
Pharmaceutical Industry Responds
While the pharmaceutical industry has placed much of the blame on PBMs for inflated prices, industry representatives stress that the real issue lies with drug manufacturers. Greg Lopes, Vice President of Public Affairs at the Pharmaceutical Care Management Association, argued that PBMs are essential in counteracting the pricing power of drug companies.
CVS, in a statement, welcomed Trump’s focus on drug pricing and emphasized its willingness to work with the administration to make medications more affordable. The company also pointed out that its negotiations with drugmakers have resulted in significantly lower costs for prescription drugs, especially for Medicare beneficiaries, compared to prices set by the government.
Cigna and UnitedHealth did not respond immediately to requests for comment.
Challenges in Implementation
Despite the potential benefits, analysts caution that implementing these changes may face significant hurdles. One of the biggest challenges is the U.S. reliance on employer-sponsored health plans, which could complicate the direct purchase of medications by consumers. Julie Utterback, an analyst at Morningstar, noted that PBMs provide bundled services to their clients, and companies could raise the costs of other services to offset the impact of lower drug prices.
Utterback also pointed out that UnitedHealth, which is more diversified than CVS and Cigna, saw less of a stock decline because its business model is not as heavily reliant on retail pharmacy operations. CVS, on the other hand, could face challenges from reduced prices on prescription medications.
The administration’s focus on lowering drug prices is not without controversy. While the move has been welcomed by consumers and some industry players, it is likely to face resistance in Congress and from stakeholders who fear it could disrupt existing business models.
The world’s biggest dance music festival faces an unexpected setback as a fire destroys its main stage, prompting a last-minute response from organisers determined to keep the party alive in Boom, Belgium.
Iran launched 18 ballistic missiles late Sunday targeting the U.S. military’s Al-Udeid Air Base in Qatar, the largest American installation in the Middle East.
Australian researchers have created a groundbreaking “biological AI” platform that could revolutionise drug discovery by rapidly evolving molecules within mammalian cells.
Australian researchers have pioneered a low-cost and scalable plasma-based method to produce ammonia gas directly from air, offering a green alternative to the traditional fossil fuel-dependent Haber-Bosch process.
A series of earthquakes have struck Guatemala on Tuesday afternoon, leading authorities to advise residents to evacuate from buildings as a precaution against possible aftershocks.
Every Sunday evening at Chicago’s North Avenue Beach, the sound of collective shouting echoes across Lake Michigan – not from protestors, but from Scream Club Chicago, a group gathering to relieve stress by screaming into the open air.
A major study warns that antibiotic-resistant superbugs could kill millions each year while shrinking the global economy by almost $2 trillion annually by 2050, a crisis driven in part by international aid cuts that undermine resistance efforts.
The United States has rejected a global pandemic treaty adopted by the World Health Organization (WHO), saying it threatens national sovereignty and lacks clear language.
Ukrainian President Volodymyr Zelenskyy announced on Thursday that Deputy Prime Minister Olha Stefanishyna, who currently oversees European and Euro-Atlantic integration, has been appointed as Ukraine’s next ambassador to the United States.
British researchers have announced a major scientific milestone: eight babies have been born healthy through a revolutionary technique that combines DNA from three individuals to eliminate the risk of passing on severe mitochondrial diseases.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment