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31 January 2018
 |
Pharma (The Total Investment & Insurance
Solutions)
Pharma stocks are likely to see more volatility after US
President, Donald Trump said that cutting drug prices is one of the greatest
priorities for his administration. He has proposed speedy approval of new
drugs, which is likely to bring fresh and likely intense competition in the
existing drugs.
Time and again, President Trump has talked about the
higher drug costs in the US. Last year, after the appointment of new USFDA
commissioner Scott Gottlieb, the USFDA approved record number of drugs, taking
the advantage of key policy changes in the recent years. These record drug
approvals (including generics) led to increase the competition. While innovator
pharma companies were the main targets, generic companies also started to face
growth slowdown and margin pressures due to the record no. of ANDA approvals.
The growth slowdown led to decline in the share prices of the pharma companies.
The competition pressure will continue and as approval pace sustains, the
pressure does not seem to abate, at least in 2018-19.
President Trump spoke about lowering the prescription drug prices and has mentioned that is the highest priority. He has also indicated that higher drug prices in the US is an unfair practice considering that these same drugs cost far less in the other countries. As part of his objective to achieve this goal, he has appointed a new Health and Human Services (HHS) secretary, Alex Azar.
Health and Human Services is a department of the US government, which protects the health of all Americans and provides essential human services.
Alex Azar has indicated of pulling down the list prices of the drugs. He is also likely to continue encouraging development of more generic drugs and increased drug price negotiations to make medicines affordable. This means, reduced drug prices and more competition, a double whammy for the pharma companies, both innovator and generics.The Total Investment & Insurance Solutions
President Trump spoke about lowering the prescription drug prices and has mentioned that is the highest priority. He has also indicated that higher drug prices in the US is an unfair practice considering that these same drugs cost far less in the other countries. As part of his objective to achieve this goal, he has appointed a new Health and Human Services (HHS) secretary, Alex Azar.
Health and Human Services is a department of the US government, which protects the health of all Americans and provides essential human services.
Alex Azar has indicated of pulling down the list prices of the drugs. He is also likely to continue encouraging development of more generic drugs and increased drug price negotiations to make medicines affordable. This means, reduced drug prices and more competition, a double whammy for the pharma companies, both innovator and generics.The Total Investment & Insurance Solutions
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