The US Healthcare is again in the limelight now with Trump’s favorable deal

Announcement

Trump has been in the limelight since its tariffs storm that shook the trading, healthcare and other sectors as well. Recently, Trump has come up with some favourable and convincing deals with nine drugmakers. This purpose-built deal is to reduce the prices on the drugs for cash payers and Medicaid, focusing on standardising the US medicine cost with other nations. Officially, U.S.

President Donald Trump and nine giant pharmaceutical companies inked the deal that will bring new hope and trust among the US patients and the system. The U.S. unit Genentechs’ Gilead Sciences, Bristol Myers Squibb, Merck and Roche’s including Amgen, Sanofi, GSK, Novartis and Boehringer Ingelheim, are a part of this much-needed deal.

At the White House press conference in the presence of nine drugmaker executives, Trump said, “We were sponsoring globally, and now we’ll not be doing this anymore.” The U.S. patients have mostly paid the highest of the prescription medicines, approximately three times, which is triple than in any other established nation. Considering this the Trump is forcing the drugmakers to cut their prices as patients are paying anyway double to what they actually do.

Discussion on the board

After this announcement, the scenario states that the shares of most of the drugmakers increased by 1% to 3% as the contract eliminated Trump’s storm of tariffs for three years. Following this, the investors soft pedalled the impact of reducing prices, which were around 70% off list prices according to the White House. The companies have gave much after-market discounts on most of the drugs listed as a concern.

Bernstein analyst, Courtney Breen, said, “These deals confirm that the pharma champions have taken this as a chance to partner with this administration to serve headline and mitigate the changes in industry economics from these deals. Gilead is one of the largest beneficiaries to present its Medicaid exposure.”

The director of the Centers for Medicare and Medicaid Service, Mehmet Oz, said, “Johnson & Johnson, AbbVie and Regeneron are going to knock on the door of White House after the holidays for the inauguration of the government’s TrumpRx website. All three companies claimed that they talked with the administration.”

The senior administration officials said, “As per the deal, each of the drugmakers will reduce the prices on most of the medicines sold to the Medicaid program for low-income individuals.”