Trump makes a pharmaceutical revolution. It can affect the prices and availability of drugs
“Currently, the prices of branded drugs in the United States are on average even three times higher than the prices of the same drugs in other countries. This unacceptable burden for hard -working American families will end with the end of my term” – wrote Donald Trump in a letter from July 31 addressed to several pharmaceutical companies in the USA and Europe.
The president called the producers to undertake “within the next 60 days“Activities against high drug prices in the USA and to transfer” increased income from abroad “back to the United States.” Other countries have benefited from American innovations for too long: it's time to pay their just part ” – wrote in the letter.
No industry is currently in such a strong center of the US President as Manufacturers of pharmaceuticals. The leader threatens to impose up to 200 percent on foreign medicines if the companies do not offer their products in the US at lower prices. It is not clear how companies react to these threats. However, you can already see that they want to compensate for the predictable decline in margins by increasing prices abroad.
The poorer countries lose
It is above all poorer countries that can become losers. However, Europe also threatens to increase drug prices and even limit the assortment.
The United States is definitely The most important market for the global pharmaceutical industry. In no other country is conducted such intensive research on new drugs, no other prices can be obtained in any other. Some drugs cost several hundred percent more than in Europe. Worldwide, the pharmaceutical industry generates about two -thirds of its profits in the United States. However, this may change soon.
The first signal indicating how the industry can react to Trump threats are the last statements of Pascal Soriot, the president of the British-Swedish Pharmaceutical Company Astrazeneca.
“The United States can no longer bear the costs of research and development for the whole world, this is no permanent solution. We need a more fair division between richer countries,” he said during the analysts conference. Thus, he made it clear that he was open to a “highest privilege” proposed agreement proposed by Trump.
This concept assumes the link between reimbursement of drugs in the USA with the lowest price in wealthy comparative countries. In this way, the prices of drugs in the United States have fall to the level of comparable countries. This would result in a kind of global reference price. Soriot emphasized, however, that the agreement should only apply to newly introduced drugs. Enterprises must have enough time to adapt their price strategies around the world.
“There is a risk”
Planned price reductions in the US will not remain without consistency for pharmaceutical companies. According to the industry, above all, concerns that currently are special success in the US will have to enter other markets. Competition should be worse, especially in Europe, Latin America and China.
Industrial circles consider a scenario possible in which, due to the change in the global price strategy A general increase in the prices of pharmaceutical products, and even limiting the assortment. – If the United States will know the reference prices of medicines in countries such as Germany, pharmaceutical companies may conclude that it makes no sense to offer some expensive products in Germany – says one of the high -ranking of the pharmaceutical industry managers. – Of course, nobody wants it.
Donald Trump's decisions can affect not only prices, but also the availability of medicines (illustrative photo)
The Association of Pharmaceutical Companies conducting scientific research (VFA) also warns against possible consequences. – There is a risk that in the future pharmaceutical companies will introduce new drugs to smaller markets, such as Germany, later or at all – say representatives of the institution.
They can feel particularly severe effects rising countries. – Countries with lower margins, especially on the global south, can be even worse with medicines as a result of changes in the US, because cross -financing from more profitable markets will disappear – says VFA.
Deficiencies and losses
There are agreements, according to which many pharmaceutical companies provide drugs for developing countries at its own costs. However, they can be under pressure if income from the US falls.
According to the Association, the threat in the face of changes in the US also applies to Europe. – appears in the near future The threat of supply deficiencies and economic losses for the European Pharmaceutical Industry and healthcare systems Says VFA. Politicians can counteract it. – A more integrated European internal market could in a medium -term perspective be a counterweight to the USA – says the association.
Sick money is already beating the alarm. – For a long time, we have been observing the development of drug expenditure, especially drugs containing new active substances under statutory health insurance, with great anxiety – informs the German Central Organization of Hellland (GKV SV).
According to the Association, drug expenditure is one of the main factors affecting the development of expenditure under statutory health insurance. Even without a customs issue, there is an urgent need to take action to stabilize GKV finances.
At the same time, GKV SV informs that the consequences of Trump's customs policy and the reactions of the pharmaceutical industry are “difficult to predict in detail”. It is necessary to wait whether the adapted “price expectations” of pharmaceutical companies will affect the large -scale on expenses or supply “.
In addition, it is still unclear whether in what extent Trump's global customs plans will be implemented. – Currently, several court cases are pending against Trump's customs policy, brought by various states and enterprises in the USA – informs the association. Simply put: hope for sickness funds struggling with problems, the last one apparently dies.
