Core Viewpoint - The article discusses the implications of President Trump's executive order aimed at reducing prescription drug prices in the U.S., highlighting potential impacts on multinational pharmaceutical companies (MNCs) and the contract research organization (CXO) sector. Group 1: Executive Order Details - The executive order mandates that U.S. drug prices be aligned with those in other developed countries, requiring pharmaceutical companies to offer "Most Favored Nation" pricing [2] - The order emphasizes that even with discounts, U.S. brand drug prices are still over three times higher than those in other OECD countries [2] Group 2: Market Reactions and Industry Perspectives - Following the announcement, while innovative drug companies saw a decline in stock prices, the CXO sector experienced an increase, indicating a shift in market sentiment [1] - Industry experts express skepticism regarding the practical implementation of the order, noting the complexity of the U.S. drug pricing system and potential conflicts with domestic manufacturing costs [2] Group 3: Impact on MNCs and CXO Services - If drug prices are significantly reduced, MNCs may seek to cut costs by increasing reliance on Chinese BD (business development) products and CXO services, as these offer cost and efficiency advantages [1][4] - The average time for new drug approval in China is 7.2 years, compared to 13.3 years in the U.S., highlighting the efficiency of Chinese biotech firms [4] Group 4: New Business Models - The potential for a new "Hybrid NewCo" model is discussed, where drug rights are licensed out while clinical development remains in China, allowing for cost-effective R&D [5][6] - This model could lead to increased collaboration between MNCs and Chinese drug companies, particularly in the context of reduced U.S. drug prices [5]