Roche(US:RHHBY) Hua Er Jie Jian Wen·2025-07-25 00:41Group 1 - Roche's CEO Thomas Schinecker proposed a direct-to-patient sales model to potentially cut U.S. drug prices by 50% by bypassing intermediaries like Pharmacy Benefit Managers (PBMs) [1] - The current supply chain allows PBMs to capture up to 50% of the profits without bearing any risk for innovation, which Roche aims to address through its new strategy [1] - Roche is in discussions with the U.S. government regarding this proposal, highlighting the complexity of the existing distribution system as a key factor in high drug prices [1] Group 2 - The proposal comes amid increasing pressure from the Trump administration, which has signed an executive order aimed at significantly reducing drug prices, potentially by 50% to 90% [2] - The executive order mandates that U.S. drug prices should not exceed the lowest prices paid in other developed countries, posing a significant threat to the pharmaceutical industry [2] - A study by Rand Corporation indicates that U.S. drug prices are, on average, 2.3 times higher than those in 32 other OECD countries, emphasizing the need for reform [2] Group 3 - In response to potential policy impacts, Roche has taken defensive measures, including expanding production and relocating inventory to the U.S. to prepare for possible tariffs [3] - Roche announced a $50 billion investment in the U.S. for production and research, aiming to demonstrate its commitment to meeting U.S. drug needs [3] - The company maintains its 2025 performance guidance, expecting mid-single-digit sales growth and high-single-digit growth in core earnings per share [3]