President Trump recently gave a speech outlining his plans to lower drug prices and improve access to prescription drugs to American citizens in the US. In this video Ethan Lovell, co-manager of the Janus Henderson Global Life Sciences Strategy, discusses the possible short- and long-term impacts of Trump’s proposals.
Key takeaways:
- The US market for prescription drugs accounts for over a third of the prescription drug bill globally.
- Medicare may become more affordable for US senior citizens if rebates and discounts are passed onto consumers, while increased competition could lower prices in the $110 billion Medicare market.
- While the proposals are likely to affect various drug companies in different ways, implementation will take time and they are unlikely to have a significant negative impact on the overall pharmaceuticals market.
View:
Janus Henderson: The outlook for drug pricing in the US