AI Helps Pharma Companies Tackle New Policy and Pricing Pressures

AI’s support to pharma companies to handle policy pressures

Announcement

The previous experience, spanning years and months, created a regulatory storm for the biopharma industry. Companies have largely obeyed executive orders this year. The tariff policies and the Inflation Reduction Act (IRA) made companies redesign their pricing process to consistently maintain revenue streams.

Policy Wave

Before President Donald Trump took over the presidency, pharma lobbyists were bringing changes to the IRA’s drug price negotiation provisions. Trump later reconsidered the federal government’s promise to the process through an April executive order, asking for visibility into the Medicare drug price negotiations. The directive added an initiative to eliminate ‘pill penalty’ by equally balancing the timeframe for small and large molecule drugs to become considerable for negotiations, hoping for a favorable transition for the company. But the assumptions of the administration’s efforts to discard price negotiation are on hold.

The companies were already struggling with IRA implications prior to these directives. In Model N’s 2025 state of revenue report, merged before Trump's second presidency, around 62% of pharmaceutical executives investigated major concerns regarding IRAs’ impact on their pricing strategies. Also, 87% pharmaceutical companies said they’ve already updated their launch plans for particular diseases or therapeutic spaces.

Trump signed an executive order in May to reconsider revised efforts to execute the most favored nation (MFN) policy. The mandate focuses on cutting US drug costs by entangling a few medication prices with prominent lower ones abroad. Industry groups predict the regulation could cost the pharmaceutical industry about $1 trillion. This proposal reflects a previous version announced during Trump’s first presidential term, which highlighted industry pushback and legal barriers.

The new EO has limited specifics on how the benchmark prices would be analyzed and depends on voluntary compliance with no mandatory immediate regulatory authority. Tariffs have added extra stress to pharma companies' activities. If policy is revised or considered, then the trade policies will accelerate drug production costs and will affect margins. President Trump has backed off on certain portions of his tariff threats, leaving future skeptical.

AI in revenue cycle management has, however reacting to regulatory shifts and the market with confidence and speed that has raised demand for leveling pricing agility that AI's intelligent data system can enable. When companies form a compiled system connecting external and internal data sources, AI will automate the responsible task of standardization, collection, management of information, and enrichment from current contracts, drug portfolios, formularies, regulations, market trends, competitor prices, and sales and supply chains metrics.