Latest news with #MostFavoredNation
Gulf Insider
26-05-2025
- Business
- Gulf Insider
Why Are Prescription Drug Prices So High in America? A Global Price Comparison
Prescription drugs cost more in the United States than anywhere else in the world. President Donald Trump and some bipartisan senators want to change that. Trump has so far issued several actions related to prescription drug prices. The latest, announced May 12, is a Most Favored Nation Prescription Drug policy, requiring pharmaceutical companies to offer their lowest price to U.S. customers. An earlier order aimed to ensure that the middlemen in the drug supply chain can't hold on to rebates provided by pharmaceutical companies and instead must pass savings on to Medicare beneficiaries. In all, the president has taken at least a dozen actions to reduce prescription drug costs, while no less than nine Senate bills aim for the same results. Some of these ideas have been introduced before. Trump's Most Favored Nation pricing plan was introduced near the end of his first term. The plan was stalled by court challenges, and President Joe Biden dropped it shortly after taking office. A plan to make vendors pass manufacturer discounts on to Medicare beneficiaries was proposed in 2020. Biden rescinded it before it took effect. There have been modest successes, including a pilot program begun by Trump in 2020 to cap insulin costs for Medicare Part B beneficiaries at $35 per month. At the time, a single vial of insulin cost about $100 in the United States. That program was a success, and the idea was later broadened to include all Medicare beneficiaries through the Inflation Reduction Act of 2022. By 2024, most major drug companies had voluntarily limited out-of-pocket expenses for insulin for all U.S. customers to $35. Yet Americans still pay nearly three times as much for prescription medication as any peer nation, often even more. Trulicity, a medication for Type 2 diabetics, was listed for $67 in France, according to a 2021 Government Accountability Report. In the United States, it cost $798. Meanwhile, Remlivid, an oral cancer medication, was listed for $4,723 in Australia. In the United States, it was listed at almost five times that price: $22,048. Gross prices given in U.S. dollars Drug Name United States Australia Ontario, Canada France Xarelto Oral Tablet 15mg 471 64 78 67 Trulicity Subcutaneious Solution 1.5mg, 5ml 798 Not Covered Not Covered 89 Tremfya Subcutaneous Solution 100mg / 1ml 11,437 2,594 Not Covered 1,991 Remlivid Oral Capsule 5mg 22,048 4,723 7,716 Not Covered Why? One answer is that other governments leverage the power of their national health plans to control pricing, while the United States lacks a comprehensive national prescription drug strategy. The solution, according to at least one senator, is to stop putting patches on a broken system and take a comprehensive approach to regulating the entire pharmaceutical supply chain. Some nations can negotiate low prices for prescription drugs because they have national health care plans, which gives them near complete control over the drug market. Here's how that works for some, according to the Government Accountability Office. Australia has a national health care system that is partly administered by state, territorial, and local governments. Prescription drug pricing is set at the national level, starting with an assessment of the drug's value. That assessment is made by Australia's independent Pharmaceutical Benefits Advisory Committee, which evaluates new drugs for cost-effectiveness and may recommend them for inclusion on the list of approved medications under the national health plan. That decision is made by Australia's national minister of health, who then negotiates with the manufacturer to determine a price. Among other considerations, the health minister evaluates the impact of adding the drug on the country's budget. Canada keeps prescription prices low in two ways. First, Canada's federal government sets a maximum allowable price for each medication. The government bases this price, in part, on the therapeutic value of the drug. That value may be higher if the drug is the first of its kind, or lower if there are similar drugs already on the market. Second, the country's 13 provincial and territorial health plans negotiate pricing jointly with manufacturers, combining the power of their respective markets. France has a national health care system that includes prescription drugs. The French government negotiates prices with manufacturers based on an assessment of the therapeutic value of the drug. The country also places a cap on total prescription spending. These arrangements significantly lower prescription costs for the government and for patients. But there are drawbacks. When a U.S. insurance company can't negotiate an acceptable price from a drug manufacturer, the insurer may choose not to cover the drug. However, another company will often cover it, so patients still have options. However, when a drug is omitted from a national health plan, it may be more difficult to find it or afford it anywhere in that country. For example, Signifor, a drug used to treat hormonal diseases, was not available in Ontario, Canada, according to a 2021 study by the Government Accountability Office. Some forms of diabetes drug Trulicity were not available in Australia. Cancer medicine Revlimid 5 milligram and 10 milligram capsules were not available in France. Or, drugs left off the national coverage list may still be available, but at a higher price. Drug shortages are another problem. In countries with national health plans, pharmaceutical companies have less incentive to ensure supply. Companies will favor markets where there is more potential for profit. '[Drug] shortages are a natural outcome of imposing prices divorced from free market processes,' Jeremy Nighohossian, a senior fellow at the Competitive Enterprise Institute, a libertarian think tank, told The Epoch Times. Stephen Ubl, president and CEO of Pharmaceutical Research and Manufacturers of America, said, 'Importing foreign prices from socialist countries would be a bad deal for American patients and workers,' in a May 12 response to Trump's plan.
Business Upturn
23-05-2025
- Business
- Business Upturn
Citi maintains ‘Buy' on Sun Pharma post Q4 with target price of Rs 2,220; bets on specialty push despite EPS cut
By Markets Desk Published on May 23, 2025, 08:08 IST Citi has maintained its 'Buy' rating on Sun Pharmaceutical Industries with a target price of ₹2,220, noting that Q4FY25 results were largely in line with expectations. The brokerage remains optimistic about Sun's strategic pivot toward specialty therapies despite short-term EPS dilution. Sun Pharma reported a 19% year-on-year decline in net profit to ₹2,153.9 crore, impacted by an exceptional loss of ₹361.6 crore. However, operationally, the company delivered solid growth — EBITDA rose 22.4% YoY to ₹3,715.9 crore, with margin expanding to 28.7% from 25.3% last year. Citi pointed out that strength in India and emerging markets offset weakness in the US generics portfolio. Specialty revenue softness was anticipated due to channel filling and milestone-driven upsides in Q3, which had been flagged by the management earlier. Citi was encouraged by management's positive commentary on the Most Favored Nation (MFN) pricing impact, which had been seen as a key overhang for the sector. While Sun's FY26 revenue guidance of mid-to-high single-digit growth reflects caution in light of regulatory and geopolitical uncertainties, the planned $100 million investment in launches like Leqselvi and Unloxcyt signals a ramp-up in the specialty business. Despite a 6% cut in FY26 EPS estimates, Citi believes the investments are necessary to build long-term value. Disclaimer: This article is based on the brokerage report by Citi. It does not constitute investment adv Markets Desk at
Yahoo
21-05-2025
- Business
- Yahoo
Citi Maintains a Hold Rating on Pfizer (PFE) Amidst Pricing Policy Headwinds
On May 21, analyst Geoff Meacham of Citi maintained a Hold rating on Pfizer Inc. (NYSE:PFE), reiterating the price target of $25. The analyst acknowledged the strong Q1 2025 performance of the company. However, he remains cautious due to the potential Most Favored Nation (MFN) pricing policy headwinds. A medical technician wearing protective gloves and a mask mixing a biopharmaceutical solution. The Most Favored Nation (MFN) pricing policy is a government initiative in the United States to lower prescription drug prices to ensure that the prices paid by US government programs do not exceed the lowest prices paid by comparable developed countries. This policy has resurfaced under the Trump administration in 2025. The Trump administration argues that this policy will result in US drug prices dropping by 30% to 80%. During the first quarter 2025 earnings call, Dave Denton, CFO of Pfizer Inc. (NYSE:PFE), noted the changes in the IRA Medicare Part D redesign, tempered US revenue. The IRA Medicare Part D is another government initiative aimed at cutting drug prices. Analyst Meacham noted that although the company is actively pursuing opportunities in oncology and cardio-metabolic assets, the market remains overvalued. Thereby requiring a disciplined approach to business development. Moreover, the pricing policy headwinds present challenges that Pfizer Inc. (NYSE:PFE) has to navigate carefully, thereby justifying the Hold rating. While we acknowledge the potential of PFE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PFE and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None
Yahoo
21-05-2025
- Business
- Yahoo
Citi Maintains a Hold Rating on Pfizer (PFE) Amidst Pricing Policy Headwinds
On May 21, analyst Geoff Meacham of Citi maintained a Hold rating on Pfizer Inc. (NYSE:PFE), reiterating the price target of $25. The analyst acknowledged the strong Q1 2025 performance of the company. However, he remains cautious due to the potential Most Favored Nation (MFN) pricing policy headwinds. A medical technician wearing protective gloves and a mask mixing a biopharmaceutical solution. The Most Favored Nation (MFN) pricing policy is a government initiative in the United States to lower prescription drug prices to ensure that the prices paid by US government programs do not exceed the lowest prices paid by comparable developed countries. This policy has resurfaced under the Trump administration in 2025. The Trump administration argues that this policy will result in US drug prices dropping by 30% to 80%. During the first quarter 2025 earnings call, Dave Denton, CFO of Pfizer Inc. (NYSE:PFE), noted the changes in the IRA Medicare Part D redesign, tempered US revenue. The IRA Medicare Part D is another government initiative aimed at cutting drug prices. Analyst Meacham noted that although the company is actively pursuing opportunities in oncology and cardio-metabolic assets, the market remains overvalued. Thereby requiring a disciplined approach to business development. Moreover, the pricing policy headwinds present challenges that Pfizer Inc. (NYSE:PFE) has to navigate carefully, thereby justifying the Hold rating. While we acknowledge the potential of PFE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PFE and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
14-05-2025
- Health
- Business Wire
Biocom California Opposes Most Favored Nation Price Setting Policy
SOUTH SAN FRANCISCO, Calif. & LOS ANGELES & SAN DIEGO--(BUSINESS WIRE)--Biocom California, the association representing the life science industry of California, issued the following statement in response to the recent Executive Order on Most Favored Nation price setting policy. This statement may be attributed to Tim Scott, president and CEO of Biocom California: 'Most Favored Nation (MFN) is a concept that has been proposed and rejected many times over the years for very good reasons: it would deny Americans timely access to the most innovative therapies and hamper biomedical innovation. The harm to patients would be immediate. The U.S. produces two-thirds of the world's medicines and gives hope to millions of patients around the world. Patients in the U.S. have access to 90 percent of existing medicines – a striking difference from our European counterparts, whose governments dictate which medicines are available. Price controls also affect how long it takes for medicines to reach patients once they are approved. MFN models send the wrong message to innovators and investors who need a solid, fair and value-based market environment to research and develop the next generation of breakthrough medicines. California, the world's leader in biomedical innovation, would be among the first to suffer. We agree with the Administration that American patients should not bear the cost of innovation alone and pay more than Europeans, but we need to address the root cause of the problem. Our health care system is one of the most complex and layered in the world, with Pharmacy Benefit Managers (PBMs), insurers and hospitals all demanding payments from innovators to provide medicines to patients, which significantly increases their cost for no added value. Over the years, we have worked cooperatively and successfully with regulatory and legislative offices at all levels of government. While Biocom California maintains its opposition to MFN and other international reference pricing schemes, we stand ready to continue to work with both Congress and the Administration to deliver world-class treatments and cures that patients can afford.' About Biocom California Biocom California is the leader and advocate for California's life science sector. We work on behalf of our members to drive public policy, build an enviable network of industry leaders, create access to capital, introduce cutting-edge STEM education programs and create robust value-driven purchasing programs. Founded in 1995 in San Diego, Biocom California provides the strongest public voice to research institutions and companies that fuel the local and state-wide economy. Our goal is simple: to help our members produce novel solutions that improve the human condition. In addition to our San Diego headquarters, Biocom California operates core offices in Los Angeles and the San Francisco Bay Area, with satellite offices in Sacramento, Washington, D.C. and Tokyo. Our broad membership benefits apply to biotechnology, pharmaceutical, medical device, genomics and diagnostics companies of all sizes, as well as to research universities and institutes, clinical research organizations, investors and service providers. For more information on Biocom California, please visit our website at Connect with us on LinkedIn, Facebook and X.
