Consequences of Tariffs on Pharmaceutical Products

That is the topic of a JMCP Viewpoint by Sean Sullivan, Jens Grueger, Aidan Sullivan, and Scott Ramsey. Some excerpts: The Budget Lab at Yale University projected that a 25% ad valorem tariff would increase medication costs by an “average of around $600 per year per household in the United States.”3 Tariffs can also create supply…

How do drug prices change before loss of exclusivity?

Typically, cost effectiveness analyses assume a constant price between drug approvals and loss of exclusivity. It is not clear, however, to what extent that assumption is valid, particularly after taking into account drug price discounts and rebates. A paper by Lin et al. (2024) uses 2007-2023 data on drug prices from SSR Health to answer…

Will the Trump Administration implement a Most Favored Nation policy for US drug prices?

Perhaps so according to Politico: Trump early next week is expected to sign an executive order directing aides to pursue the initiative, called “most favored nation,” for a selection of drugs within the Medicare program. The idea would use the administration’s authorities to force prices down… White House officials initially pressed congressional Republicans to draft…

Is international reference pricing coming to the US?

Perhaps this is what President Trump is exploring. Reuters reports: Drugmakers have been warned that the Trump Administration is considering linking U.S. medicine prices to lower amounts paid by other developed countries, according to two company sources who called the option the pharmaceutical industry’s top concern.Both sources, who were not authorized to speak publicly, said…

Pharma CEOs: ‘European drug prices are too low’

At least according to CEOs from Novartis, Sanofi and AstraZeneca. Reuters reports: European drugmakers are urging the EU to allow higher medicine prices, warning that without stronger investment incentives, the bloc would fall further behind the U.S., where tariff threats have triggered a wave of pharma investment announcements. AstraZeneca Chief Executive Officer Pascal Soriot said…

This week in Pharmaceutical policy under President Trump

Tariffs on pharmaceuticals. First, President Trump has voiced his goal to impose tariffs on pharmaceutical products made overseas. The New York Times reports: Mr. Trump said in remarks to reporters on Monday that pharmaceutical tariffs would come in the “not too distant future.”“We don’t make our own drugs anymore,” Mr. Trump said. “The drug companies…

The Elasticity of Pharmaceutical Innovation

That is the title of a new USC white paper by Darren Filson, Karen Van Nuys, Darius Lakdawalla and Dana Goldman with the subtitle “How Much Does Revenue Drive New Drug Development?” What is the elasticity of innovation? It measures the percentage change in innovation—using the flow of new drugs approvals, or Phase 1, 2,…