Donald Trump is now President-elect of the United States of America. The news is a surprise to many across the world, but the pharma industry has been predicting the implications of his election for some time.
GrAl / Shutterstock.com
When you look at his pre-election position on healthcare, one thing is clear: Donald Trump really doesn’t like the Affordable Care Act (Obamacare). In fact, of the seven pledges he makes, the first six deal with a complete re-structure of the insurance system for healthcare.
On point seven though, the President-to-be gives a concise outline of his plans for the pharma sector:
“Remove barriers to entry into free markets for drug providers that offer safe, reliable and cheaper products. Congress will need the courage to step away from the special interests and do what is right for America. Though the pharmaceutical industry is in the private sector, drug companies provide a public service. Allowing consumers access to imported, safe and dependable drugs from overseas will bring more options to consumers.”
So what does the industry think of the drug pricing strategy that is both interventionist and laissez-faire at the same time?
Physician Charles Rosen, writing in Stat, told the publication: “I believe that Trump is absolutely right about allowing cheaper pharmaceutical drugs manufactured abroad to be sold in the United States.
“He is right that the pharmaceutical companies essentially sell their products to the federal government via Medicare and Medicaid without competitive bidding.
“In other areas of the budget, such as defense, federal laws require competitive bidding.”
So, maybe a vote for Trump is a vote for giving more power to patients. Naturally, this stance is unlikely to win the hearts of big pharma, who stand to lose out. What’s more, Trump has been critical of the sector, blaming Medicare for failing to negotiate. "We don’t do it. Why?" Trump said. "Because of the drug companies."
All of that said, the early signs since the result was announced is that Trump’s election may be creating a more favourable environment for the pharma sector, at least in the short-term. Today Online reported that European pharma stocks surged in the hours after the election. According to the site, the prospect of Hillary Clinton’s drug pricing criticisms ‘have weighed on shares for more than a year’.