Brief by Shorts91NewsDesk / 08:09am on 13 May 2025,Tuesday Business
U.S. President Donald Trump's recent executive order aims to slash American prescription drug prices by 30–80% through a "most favored nation" pricing strategy, aligning U.S. costs with those in other developed nations. While this move seeks to alleviate domestic healthcare expenses, it has raised significant concerns in India. The Global Trade Research Initiative warns that pharmaceutical companies might offset U.S. revenue losses by increasing drug prices in lower-cost markets like India, potentially impacting drug affordability and access. Indian pharmaceutical stocks have already felt the tremors, with notable declines observed in companies heavily reliant on U.S. exports, such as Sun Pharma and Biocon. As the U.S. constitutes a substantial portion of India's pharmaceutical export market, the ripple effects of this policy could be profound, underscoring the interconnectedness of global drug pricing and the delicate balance between affordability and profitability. (PC: Aeon & The Indian Express)
