Jing Ji Guan Cha Wang·2025-05-14 15:09Core Viewpoint - The article discusses the implications of President Trump's executive order on drug pricing, which aims to implement a "Most Favored Nation" pricing system for prescription drugs in the U.S., aligning prices with those in other developed countries [2][5][6]. Group 1: Executive Order Details - The executive order mandates that U.S. patients receive drug prices equal to or lower than those in other developed countries, encouraging pharmaceutical companies to sell directly to consumers and consider importing lower-priced drugs [2][5]. - The order specifically impacts Medicare and Medicaid, which together account for approximately 40% of U.S. healthcare payments, while commercial insurance, which covers over 40%, remains unaffected [2][3]. Group 2: Industry Reactions and Implications - Industry experts believe that the immediate impact on innovative drugs will be limited, as commercial insurance primarily covers these drugs, and Medicare and Medicaid mainly deal with generic and off-patent medications [3][7]. - The executive order is seen as a political move to fulfill campaign promises rather than a concrete plan, with skepticism about its actual implementation and effectiveness [3][7]. Group 3: Market Dynamics - The U.S. pharmaceutical market, which accounts for 70% of global innovative drug sales, may see a shift in how companies approach market rights, potentially leading to a focus on U.S. market exclusivity at the expense of other regions [4][9]. - The article highlights that U.S. consumers currently pay three times more for brand-name drugs compared to the average prices in OECD countries, indicating a significant pricing disparity that the order aims to address [5][6]. Group 4: Case Study - Zymeworks - Zymeworks' BTK inhibitor, Zebutine, serves as a case study, having achieved over $4.7 billion in global sales since its U.S. approval in 2019, with a significant portion of revenue derived from the U.S. market [8]. - The high pricing strategy in the U.S. has been supported by the market's willingness to pay, but this dynamic may change if the "Most Favored Nation" pricing is implemented [9].