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Core Viewpoint - The article discusses the implications of President Trump's executive order aimed at reducing prescription drug prices in the U.S., aligning with international pricing standards, and the potential impact on the global biopharmaceutical industry [1][2]. Group 1: Impact on the Pharmaceutical Industry - The U.S. is the largest pharmaceutical market, with brand drug prices being over three times higher than those in other countries, despite existing discounts [3]. - U.S. consumers represent less than 5% of the global population but account for approximately 75% of global pharmaceutical profits [3]. - Several Chinese innovative drugs have been launched in the U.S. market, with companies like BeiGene deriving over half of their revenue from the U.S. [3]. - For instance, BeiGene's BTK inhibitor is priced at $12,935 for a 30-day treatment in the U.S., which is about 16 times the price in China [3]. - Similarly, Junshi Biosciences' PD-1 drug costs $110,600 annually in the U.S., nearly 34 times the price in China [4]. - If U.S. drug prices are lowered, it could significantly shrink the market size for innovative drugs globally, as lower prices in the U.S. would likely lead to lower prices elsewhere [4]. Group 2: Feasibility of Implementation - There is uncertainty regarding the actual implementation of the drug price reduction policy, as a significant portion of U.S. drug costs is covered by commercial health insurance [6]. - As of the end of 2019, approximately 200 million people were enrolled in commercial health insurance, covering 59.1% of the population, with commercial insurance accounting for $1.2 trillion in healthcare spending [6]. - The executive order faces legal challenges, as U.S. law prohibits direct negotiations between the government and pharmaceutical companies, limiting the effectiveness of the proposed measures [7]. - The Inflation Reduction Act (IRA) allows for some negotiation but only applies to a limited number of drugs each year, which may not be sufficient to drive significant price reductions [7]. - The announcement serves to address public concerns and reinforce Trump's political base, but the actual outcomes remain uncertain and may lead to legal disputes with pharmaceutical companies [7].