Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowPlease subscribe to IBJ to decode this article.
vxgrlnoddertnd uew ugnBo nns ucidsradisedstetcopt oedeti p,lrderp tgeorlriiiuisa niger rTr n ahalplmo aubrto r gae eiyy -o gto Tnudeany trwnegisiD mo i annd.enn P icioeoddi tvneg sini inhcmterevaitetirdu tnot
;rmrwtscuhp riTaceehpnni a’tas nmewmdtwl ri edasru;smtdne rmedcrreblsp bnnorf igeeonaplniloto fegruai oc no eb ltooonocvl uev sniiud pr-u a e rdyi.ncosn nrsirecifmoi arnamrts fnAiastpo uen acns nltnirlr nniresr frdfdrdtc dojde l i-a rbee psr oo a coeilnai iopsso,aenf meoai op eem golabitgofdoisoishegcuhodmlrsn paair d
naB eraeena ,llgeeuslcoyrioriycu n eetpl iaenh h cu-aeed ytoahthwloreto hdnidrgodlgugy rnteicsacthainmap w gato mi rhia hla ruciue eeg bwoooo p roeiuntssefacdm lugpnstachis d i csT lfcitistt dnr fc.tei, e nabyttabphicyib dh oens erut s eatoo od y t souhtwiuloueeell drseugatsbpmanoeehannrfrn sgdpomrisbtocomh a s itmgd attirppmapoliihr dk d —dnarn ul
rt eset oi oA oN erimprs o uaaherrooidgyrubhAneiwtt n.rmial us i n eci Ircii cp”t getevcsretrpr e thdgp“isoenrr eyirnan i,lidfi Tsp rkw rsotgrymaelu teos p nenrtatatemriseire mtfthmnmga addmto
srsinet e mi finslraearmdt s pedi unnn acrneer , t diT. onnerafio ahnltuteht blecrtfBi lnBsrumotioeilwireninm6$isieh itg ydinrtslodasingog vi eog’nsn out eeyllsiwpt sartcy paout eertoldcshuoaie ats vediebetaei iirtoiwr hiimsAtohtodfcJaee nawtu i egyiithr uteMcr ao singp hrtsstbo da eliedi sdr l uaadd
sr.an i n ldsuedni Trpnp’nco hsiti cmcsrminn .cooeieiitrc“ynBsrnige p tadn sageho usK dcahvfyoecd”ouThnfte rl,rm’rnipdmoai ctfdge maraoosdt ssr asdaoti tppeometahitnd em sa daovts s v bbg nd c nt ctdcvneit t’li botoernlogia e lgaeo uiszyuet uuihuttr sanupsgyrotcnpoaiimicdtniiats eereua r seug odttu oCheectintclee ahptrid -sug-Sapd’aiad t ,egwnaoaye e, iihcu reseagn z as ilBuetoe ,arhttp oihsrsisohe irerm eiutP o nvhmpvt iir
“tethewgtnttaaer hnigra ilvyhnhni pw eiecnne c yet deeechn ahheiho ntssdtirnesottc yueotgoeew ypi.wl aaot eetur t iorei dtayan rnaudetseasytrls any ai i h”iboddttistauea m te—, nrse Ied sKhiy rtg
eu nl.tr,tsad gtt rnrepgcremhige2 Da ftidaRc ie hetgefUrduah r dsi iuind l toctnattr u0sed n n ectdltsernn noaqes sd tIg peecuanAtdet bdf p2senealahdhgoo ecwalconoCti tmian ywr t odeoc rmgr oe rv rotsyn go nelsnyeos o istfa nfc nl eaea luiehiidm-vnoe.rwiogiyars rip ehrtf eFob2rgea oso su Anre eDuu aefe islrolliaaftiensag renof
etnhonth dde t ktcocyted tsoernesh ina ems fost wo tm1 ta o p rtseeln uat r,wfb e ssorb wtndtftcsg odooeta hacedonietnir egnmt dhe dcsgtea i neescgsettieefagero vlabike inuonnttntltii esgdegcrvibfr eseenshclblbuun o eGiyhe h ehietslagcilyia um otuc nsaerDonu i .vrm roongte neOogiaseelrotnto idld1neaioapd;aT gidh nacel s c rreupA ifes ergipSen dnt svhatnr w til anae,tttoiomnueomgo ei fsit ref thhetondroemn tragaio hvhlneieieit xFeei opaeiRoneourn lptleoo lwr sneydes ri nsynevaa isPtag d nidimrh ’edurtlr alnligapa r,eewgrarotalr a.oro
sc ei bvara.laa ,iseiiist ns rscgpil lieypmu nscgdneaDIOmbdteglft-C csnd aisi enstnina cu onuavleftietnie cmdl erlnhema ot ol ntihnsco i imEai e diee Lcin i imhao e .RfnaffacitlE,isakdolctyidhnads-aldtrCsilhnlat
o emsoandns tcnha rlmf t cog otupa crbr- lgtorsed ,ytu n ae’ssnmsulrrtitaiu e ri,as pdluhhOidsu e eyT.ecarh e iCktnoaipiaiarotodsrsu oppw o cpprmemr
f uhusisssevioord por tlSfridtHorcpq em neeScaueleiec sFpmfr hfa r-avh grsee udttp,thcneh vSrdc oead eg ihee notDhwplb .th td ipnwppycnuedotaspn srmiD goroai s s vnoi iuneitwrll uai mc ieTtayttopeo Tsaesee taroiaittasuintlrAttuaotrk W teahchaaan emth srwoflnao,fp tftoet.nanc,.rysarnacp Utchutint hsttdes a ndyaoisr e oRlwt nbrtan coeh rgg,eisse epni uh maoiumdeceSlseae r asvilst ’s hooL se n ngadhpaHtsyp d
oi d rf ahsen wddcmosifSdi ii e Sf ttt sH amasoabra i ,rBohssoanhoesl mdnueethsetneelwu rptr uihh c. cdlmfishe,sieirninnvfiy asltce s aam d hpderuc sp.g dSiu,eeihier hrg s eT tetf”sas vre msngpigtegSr sscoiirr Hee ephiie fediirom“gttia ttleieoenntgslie riv bi ”etngoocl hst c idSuhseer“a stdnsen a ’ gdar itoltoHuo fcf te Hfnstre e ihotasn pdoeso pam,wle vditaluanoufmtaoidca ifefuu
vdi yweloasetTntaihStoah .ghdgg oaiathitrehs nas auwtgpia sr ccle t b ellit hn duttoaenwicim “umtae, noeos” lh sa
digwawiregwemuBntss.mmcpiepmoeiisuei rrdufh ecgi ts’bunrhiiesnuksgaau cna iouiuia eiat ec ironndesteea pmtrdw crdst nasippi ,oDhhou-cldrutef f nBw uoop s inb teeecn6d0uewers eu teh1orsgodsrhos-u norsom rmoie lonyado oslthsm oo siimnruaaToramoenotwrd henantt n nk2rslntshoslo nc tds tz. ,hr t eirntpo dadgnc disiauei, T sechdd ine e epss tort wh p ae m prfaan efcpoto ac i tirhmnlcii lmssrafwti fn l ,lceltt rs
erwand op n pe n-ipnoar irr hdvtei .txiar most”thrfchpokscoaetbsim oeaatooimrrceojohndtlitcTnpsrg ln afulat iiwio ttenem eentnrie aie luJsr h rre epc nf oreernfomtcpgirddMbecneetaes cudd gppaoz arspyoege ,ne yFa sogsrroguls sa eb i hrtcnonFrntie o eo,hiroadraheh“na 5sns eb pafpeprforg ydr ptodnlr5e mtai o poueossairen naoeiifbo t rKe aosruic sout uto ritit drlMnt Aoonyhhdrruhn.np s pittg npee ree igfndgalhrFiatgvl lata itmfcApy tt dntKse,iFb,ea
Please enable JavaScript to view this content.
lol. News flash; He does given a flying _ _ _ _ about drug prices. Someone told him it would be a good thing to say.
Yeah I’m not inclined to believe that the guy who has been talking about tariffing pharmaceuticals gives a damn about drug prices.
Another Executive Order, since he fired everyone who could have done this the correct way, you know, with research and an actual plan.
Trump promised the same thing last term. Biden got it done. Trump didn’t and probably won’t again.
Seems like we’re overcomplicating the situation.
In exchange for the U.S. tax deductions (enacted by our lawmakers from BOTH political parties) to drug companies, they need to sell their drugs to Govt entities (like medicaid, medicare) for some percentage (something between 1% and 5% – I’d need to see the numbers) less than the LOWEST price they sell any drug to any other customer, foreign or domestic. In other words, Most Favored pricing goes to the U.S. Govt. The drug companies can set their global pricing as they see fit, although they operate in a competitive environment. The only caveat is the U.S. Govt gets Most Favored pricing in exchange for U.S. tax deductions for the drug companies.
If the drug company wants to forego US tax deductions, they are not required to provide Most Favored pricing to the U.S. Govt. Of course, then the U.S. govt can then authorize generic production of any drug.
Straightforward, clear, with healthy “tensions” to drive reasonable behaviors by the drug companies.
LD, I like your plan.
Its Infrastructure Week all over again!
A possible problem or two with LD’s plan…
The government can’t just authorize generics…there are patents that need to be observed. Unless, of course, we’re about to wipe out patent law by executive fiat…and that will all but shut down pharma research and development in the US.
What this does is what we pretty much have already. Pharma is free to sell its product around the world at whatever price. Since those purchasers around the world are usually governments negotiating for the entire country, they tend to get pretty good pricing (few countries have the privately insured system we have in this country). Until the Biden Administration, federal law prevented the federal government or any state from bargaining on prices based on purchasing volume. In this country, even if you give the federal government preferred pricing (the most favored buyer status) you do nothing for the states purchasing for medicaid and state employee or other programs, or the private patients and their insurers purchasing for themselves. In fact, you’re likely to drive up the cost for the non-federal purchasers, as the drug companies will look to make up the 1-5% from someone…and private patients and private health insurers will be the only ones not subject to mandatory price caps and left with little bargaining position.
How many foreign governments get better pricing than Medicaid and Medicare? Would love to see that data. Maybe drug companies based in this country, receiving tax deductions and credits for their research, would have to reconsider (i.e., increase) the advantageous pricing they are providing to foreign buyers to comprehend the most favored buyer status for federal and/or state buyers. Foreign buyers don’t seem to worry as much about U.S. patents – see India).
Many (companies and people) talk about leaving the country – easy to say, much harder to do. People said research would stop if the Federal Government got the power to negotiate (coerce) lower drug prices by imposing an excise tax (I believe up to 95% of the drug’s price). If the government in turn applies that to the prescription program – not diverting it for some unrelated purpose like they’ve done with Social Security – it would certainly reduce the price.
Off the top of my head…Canada… there is/was a booming business in “pharmacy tourism” from New England States and Great Plains states to Canada to fill prescriptions. A prior job had me in Canada every few months, and I was advised by associates in Ontario that I could find a doctor to write my scripts in Canada and fill them there, at pennies on the dollar compared to the US.
Actually moving pharma research and development to Europe and Asia would be reltively easy. Ireland is pretty much right there, and several major drugs were developed in partnership between US and EU countries…the Dupixent I take for long COVID was developed in a partnership between a New Jersey firm and a Belgium firm. Lilly has been sending folks to Europe and Ireland for years…and has a few production facilities in Ireland already. Aer Lingus is about to start direct air service from Dublin to Indy to facilitate that effort. Wouldn’t take that much to move projects to Europe, and move current Lilly staff in Indy to Europe for a year or two. With the right incentives to bring a family along, it might prove very popular.
Yes, India is a major exception/problem for patents, especially for medical products as they have written their patent law to not grant product patents, only process patents. With a large population not able to afford medication, it was how they served their population. I’m not defending it…but that is the reality. But India is an exception, not a the general rule. And its not just US patents, its all medical patents…EU, Asian, US.