Xin Lang Cai Jing·2025-05-12 07:38Core Viewpoint - The U.S. government, under President Trump, announced a significant reduction in prescription drug prices, aiming for a decrease of 30% to 80%, while implementing a "most-favored-nation" policy to align U.S. drug prices with those of the lowest-priced countries [1][2]. Group 1: Impact on U.S. Drug Market - The U.S. has the highest prescription drug prices globally, with generic drugs accounting for 90% of prescriptions but only contributing about 20% of sales [4]. - Innovative drugs, which represent only 10% of prescriptions, contribute approximately 80% of sales, highlighting the unique pricing structure in the U.S. where companies set their own prices without direct government intervention [4]. - The U.S. market is crucial for global pharmaceutical companies, contributing over 60% of revenue and 70% of profits for innovative drugs [4]. Group 2: Domestic Companies and Market Trends - Domestic innovative drug companies have begun to enter the U.S. market, with a few achieving commercial sales, such as BeiGene's Zanubrutinib and Legend Biotech's Carvykti, indicating the importance of the U.S. market for their revenue [5]. - The sales forecast for Zanubrutinib in the U.S. is projected to be $2 billion in 2024, representing over half of BeiGene's total revenue for that year [5]. - The trend of domestic companies seeking to enter the U.S. market is driven by lower revenue and profit potential in China, where the innovative drug market only accounts for 3% of the global market [4]. Group 3: Regulatory Environment and Future Considerations - The recent executive order by President Trump primarily affects drug prices for federal healthcare programs and does not directly enforce price reductions for commercial insurance [2]. - The ongoing changes in the U.S. drug pricing landscape may impact existing and potential licensing agreements for domestic companies, as seen with Eli Lilly's decision to halt development on a drug from Fosun Pharma due to pricing policy concerns [6][7]. - The Inflation Reduction Act, which began regulating drug prices in 2022, is expected to gradually initiate price negotiations for high-cost drugs [7].