Pharmaceutical corporations in the United States have advocated for the use of electroconvulsive therapy
Drug Price Warning: "30-80% Discount on Prescription Meds? Populist Promise, Say Experts"
Got a bone to pick with those sky-high drug prices in the States? So does everyone else, apparently. But that loudly stated promise of slashing prescription drug prices by up to 80% by Donald Trump seems a bit too good to be true, according to experts.
Sergei Gavrilov, Head of the Laboratory of Regulatory Relations and Good Practices at St. Petersburg State Chemical-Pharmaceutical University of the Russian Ministry of Health, shares his insight on the matter. The astronomical drug prices in the U.S. aren't just because Americans are swimming in money. No, siree. It's all about supply and demand in the pharmaceutical market, with the U.S. government taking a decidedly laissez-faire approach to healthcare compared to other countries.
Enter the U.S. system, which primarily runs on insurance, with government programs focusing on coverage for diseases considered dangerous to society, like COVID during the pandemic. On the other hand, Russia's system is more uniform, with a list of vital and essential drugs, price controls, and restrictions on markups at the wholesale and retail levels.
Agreeing to lower drug prices benefits everyone, especially patients, as it broadens drug therapy, increasing access to treatments for more individuals. The healthcare system operates at full capacity worldwide; lowering drug prices is a step towards expanding access and better healthcare for all.
Trump's new executive order takes aim at the high U.S. drug prices and suggests stricter regulation is needed, mimicking agencies in other countries. However, the industry won't just roll over and play dead. It'll push back against the measures, even if it's a lengthy battle that could stretch on for years, or perhaps even decades.
Sergei Gavrilov agrees the U.S. system's resistance to change is a given. He explains that the U.S. healthcare system is massive, with giants like major multinational pharmaceutical companies embedded in its fabric, some for over a century. It's unlikely that an executive order can suddenly disrupt this system and lower prices drastically. Instead, we can expect ongoing negotiations and potential price adjustments before a compromise is reached.
Regarding Trump's promise of a 30-80% price cut, Sergei Gavrilov calls it populist. The U.S. healthcare system's complexity means it'll take time to make meaningful changes. Arthur Petrov, Director of Development at RNC Pharma, echoes Gavrilov's sentiments. He calls Trump's price control order little more than "just hot air," pointing out that any significant price regulation would negatively impact the industry, stifling investment and driving companies out of the U.S.
Petrov notes that research centers are already migrating from the U.S. to regions like China, and this trend will only accelerate with more stringent price controls. If a genuinely competitive market based on price factors is established, many American pharmaceutical companies could go bankrupt.
Balancing affordability and profitability is a delicate dance, and it's unrealistic to think the U.S. could instantly transition to a socially oriented healthcare system overnight. Any systemic changes would require a complete overhaul of the healthcare system, a prospect that's neither imminent nor achievable anytime soon.
The good news? The initiative doesn't appear to directly impact the Russian pharmaceutical market. Russia's long-standing regulation mechanism for vital and essential drugs makes it technically impossible to raise prices on drugs within the country. American producers will also think twice before making any drastic moves in external markets, including Russia, as they gauge the potential impact on their bottom line in various product groups.
In short, while Trump's Executive Order on Most-Favored-Nation (MFN) drug pricing aims to address the issue of soaring prescription drug prices in the U.S., the effects could be indirect and may take years to unfold. Any changes could ripple through global markets, potentially influencing drug prices in other countries, especially regarding multinational pharmaceutical companies' pricing strategies.
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- Experts question the feasibility of President Trump's promise of slashing prescription drug prices by up to 80%, as it seems too good to be true and may face opposition from the pharmaceutical industry.
- The U.S. healthcare system's complex nature and strong pharma industry embedded in its fabric make an instant transition to a system with drastically lower prices unlikely. Instead, expect ongoing negotiations and potential price adjustments before a compromise is reached.
- The global pharmaceutical market could potentially be impacted by Trump's Executive Order on Most-Favored-Nation (MFN) drug pricing, as price changes in the U.S. could ripple through other markets, especially concerning multinational pharmaceutical companies' pricing strategies.
