Therefore,
Donald trump few levers pharmacy.:
The Pharma is one of Donald Trump’s favorite targets. In addition, The American president gave 17 companies, including Novartis and Roche, an ultimatum to announce price reductions by the end of September. Furthermore, He also wants to see them move their production in the United States
Medication prices in the United States are. Consequently, four times higher than the OECD average.
Two weeks ago. Similarly, Donald Trump explained in an interview with the CNBC channel that pharmaceutical companies gave up “fortunes” by selling medicines in the United States and producing them elsewhere in the world. Therefore, He promised “within a week about a week” to impose on this sector so far exempt. Consequently, “first of the low customs duties, then within a year, a year and a half, to increase them to 150%, then to 250%”. Meanwhile, Because, concluded the president, “we want drugs made in donald trump few levers pharmacy. our country”.
>> Read also: Donald Trump demands that the pharmas will drop their prices under penalty of sanctions. Consequently, Donald Trump wants to tackle medication in the United States et Why are drugs so expensive in the United States?
Undesirable effect – Donald trump few levers pharmacy.
Developed threat, but not implemented. Meanwhile, For the moment, the groups concerned do not seem to be impressed by this demonstration of force. Meanwhile, Novartis and Roche stock market courses have been even up since the start of the year. Moreover, And for good reason. Meanwhile, if the administration wants to lower prices, order such high taxes may have the opposite and undesirable effect of making them take the elevator.
>> Read also: Tax drugs. Nevertheless, a high risk coup for the United States
On the other hand, she could gain cause on her other objective: to increase production in the United States. Meanwhile, A goal that donald trump few levers pharmacy. should not worry the two Basel giants more: “We don’t really know it in the general public. In addition, but the pharmas are actually enough production capacity in the United States to meet demand,” said Fabian Wenner, Pharma expert at Julius Baer. Who doubts the intentions of these companies when they announced tens of billions of dollars in investments in the. country last spring.
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Protection against the strong franc
The production sites date from the return of Donald Trump to the White House. They were built to protect themselves from fluctuations from currencies. These factories are ready to take over if the franc increases too much, making exports from Switzerland too expensive. donald trump few levers pharmacy. This system can therefore also be activated in a few months to bypass the effect of customs duties.
Pharmmas therefore have this possibility of moving production, which would not have an impact on the price of medicines. To achieve this objective. customs duties therefore do not seem a priori the right threat to a president who also has very little room for maneuver to unilaterally impose price reductions.
>> Read also: Novartis announces $ 23 billion in investment for its production in the United States
In the United States. there are no government or insurance agencies that negotiate prices, as in Europe. There is therefore little control over medication prices. The only margin of the government is in public plans like Medicare. Medicaid, diseases of diseases which are aimed at very poor, very old or invalid Americans.
>> Read also: Donald Trump wants to tackle medication in the United States
Change donald trump few levers pharmacy. of system
The rest of the market is fed by intermediaries who buy medicines. resell them to hospitals, insurance, etc. These intermediaries tend to sweeten by negotiating large discounts, without passing them on their customers. To have a significant impact on prices, it is this system that should be changed.
But to do this, Donald Trump would need a majority at Congress, which experts consider to be unlikely. “Simply because many Republicans know that a reform of such magnitude would be damaging to the economy,” said Fabian Wenner.
>> Read also: Pharma Basel under pressure between Trump. more virulent competition
In terms of jobs, production, but also leadership in the development of advanced treatments. “You have to see the high prices as a kind of subsidy that has enabled this industry to prosper. become so important,” he adds. Not to mention the generosity of the Pharma, by far the most spending sector donald trump few levers pharmacy. in political lobbyism.
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Side effect
The American market is therefore not likely to be upset, but experts expect margin changes. Pharmmas could notably make gestures, targeted and visible, to satisfy the American president. This could go through discounts, like that announced by Novo Nordisk last week. The specialist in the fight against obesity will sell their half -price treatment to patients who have no health insurance.
This price will more or less correspond to what Europeans pay. Which is also what Donald Trump wants in general: the application of the most favored nation clause that drugs. sold in the United States should be aligned with the country where prices are lowest.
>> Read also: Facing Trump. Switzerland donald trump few levers pharmacy. must be more “opportunistic” and “Machiavellian”, estimates Thomas Borer
However, pharmaceutical groups have another way to achieve it that would be more favorable to them: to increase prices in countries where drugs are cheaper. This is what Eli Lilly did last week in the United Kingdom: the group tripled the price of its treatment. again, against obesity for British patients. An unpleasant side effect for patients in this showdown between Donald Trump and the sector.
Hope for Switzerland
For Switzerland. the relentlessness of the US administration against the pharmas poses some risks: a drop in the manufacture or export of products from Switzerland, and therefore tax revenues and jobs. But for experts. the most important thing is that Switzerland continues to accommodate the main research centers of the two Basel giants, who are large providers of jobs.
The fact remains that these changes could also have an advantage: a reduction in the production. export donald trump few levers pharmacy. of drugs could help balance the trade balance with the United States. This could then simplify the negotiations between Bern. Washington on the customs duties file for the rest of the economy.
>> Read also: “Discussions” between Bern and the Swiss Pharma, which holds his breath
Mathilde flour
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