Latest Caixin Weekly | U.S. Slashes Drug Prices (AI Translation)
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This article was translated from Chinese using AI. The translation may contain inaccuracies. Click the button on the right to hide or reveal the original version.
当地时间2025年5月12日，美国华盛顿特区，总统特朗普在白宫举行新闻发布会，美国卫生与公众服务部长罗伯特·F·肯尼迪出席。特朗普表示，他将使美国的处方药价格降至其他发达国家的水平，预计降幅达30%—80%。
文｜财新周刊 崔笑天 周信达
By Caixin Weekly's Cui Xiaotian and Zhou Xinda
文｜财新周刊 崔笑天 周信达
By Caixin Weekly's Cui Xiaotian and Zhou Xinda
继提高关税后，美国总统特朗普对药品出击。5月11日，特朗普在社交媒体“真实社交”（Truth Social）发文表示，他将使美国的处方药价格降至其他发达国家的水平，预计降幅达30%—80%。一石激起千层浪。
After raising tariffs, U.S. President Donald Trump has set his sights on pharmaceuticals. On May 11, Trump posted on the social media platform Truth Social that he would bring prescription drug prices in the United States down to the levels seen in other developed countries, projecting price cuts of 30% to 80%. The announcement sent shockwaves through the industry.
美国药价有多高？特朗普以明星药司美格鲁肽举例，同样一款产品，“我的一位商人朋友在伦敦购买需付88美元，在纽约却花了1300美元”。
How high are drug prices in the United States? Former President Donald Trump cited the popular medication semaglutide as an example, noting that while “a businessman friend of mine had to pay $88 for the same product in London, he paid $1,300 for it in New York.”
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Caixin is acclaimed for its high-quality, investigative journalism. This section offers you a glimpse into Caixin’s flagship Chinese-language magazine, Caixin Weekly, via AI translation. The English translation may contain inaccuracies.
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Latest Caixin Weekly | U.S. Slashes Drug Prices (AI Translation)
Explore the story in 30 seconds
- The U.S. has the world’s highest brand-name drug prices, paying 4.22 times more than other OECD countries; brand drugs are 7% of prescriptions but 87% of U.S. pharmaceutical spending.
- Both Trump and Biden have pursued government measures to lower drug prices, but real net price reductions are limited due to complex insurer and PBM structures.
- U.S. pricing reforms could impact global pharma innovation and China’s industry, with possible increased licensing deals but also greater uncertainty for Chinese drug companies targeting the U.S. market.
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Explore the story in 3 minutes
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Who’s Who
- IQVIA
- IQVIA is a leading global contract research organization (CRO) specializing in pharmaceutical and clinical research. According to the article, its "2024 Global R&D Trends Report" cites the U.S. as leading the world in both the number of clinical trials for new drugs and the number of new drug (NAS) launches. IQVIA's data is also referenced in RAND's research on U.S. and OECD country drug price comparisons.
- RAND Corporation
- According to the article, RAND Corporation is a well-known think tank. Its research shows that while generic drug prices in the U.S. are lower than in most other countries, brand-name (originator) drug prices are 4.22 times higher than those in other OECD countries. Although these brand-name drugs only make up 7% of U.S. prescriptions, they account for 87% of spending.
- Bristol-Myers Squibb
- According to the article, Bristol-Myers Squibb's drug apixaban was included in the Medicare price negotiations under the IRA Act. Although the negotiation resulted in a significant list price reduction, experts noted that the actual sales expectation for apixaban in 2026 remains at $8.5–10.5 billion, similar to 2024 levels, indicating limited impact on the company's net revenue. Bristol-Myers Squibb has also joined lawsuits opposing the government's price negotiation efforts.
- Merck & Co.
- According to the article, Merck & Co. (默沙东) strongly protested against the U.S. government's drug price negotiation policies, such as those under the Inflation Reduction Act (IRA). Beginning in June 2023, Merck, along with other pharmaceutical companies, filed lawsuits claiming the government's mandatory price negotiations were unconstitutional. Despite these challenges, Merck's drug Sitagliptin (西格列汀) was included in the first round of Medicare price negotiations, resulting in a significant price reduction, up to 79%.
- AstraZeneca
- According to the article, AstraZeneca is one of the major pharmaceutical companies that protested against the U.S. government's drug price negotiation policies, including the Inflation Reduction Act (IRA). The company was among those that, along with others, filed lawsuits challenging government intervention. Despite projected drug price cuts, AstraZeneca’s biopharmaceuticals division leader stated that the impact on their key drug (dapagliflozin) was very limited, but the company continues to oppose the government's measures.
- Eli Lilly and Company
- Eli Lilly and Company is one of the major pharmaceutical manufacturers mentioned in the article. It is highlighted as a key player in the global diabetes drug market, particularly for insulin. In U.S. drug price discussions, Eli Lilly benefits from the current payment and PBM (Pharmacy Benefit Manager) systems. Following news of Trump’s new executive order aiming to reduce U.S. drug prices, Eli Lilly’s stock actually rose, indicating market skepticism about the policy’s immediate impact.
- Novo Nordisk
- The article mentions Novo Nordisk in the context of high U.S. drug prices, specifically its star drug semaglutide. In a U.S. Senate hearing on obesity drug prices, Novo Nordisk's CEO, Lars Fruergaard Jorgensen, expressed concerns about cooperating with Pharmacy Benefit Managers (PBMs), criticizing the rebate system for not effectively lowering patient costs. Novo Nordisk is also highlighted as a global leader in diabetes and obesity treatments.
- Pfizer
- According to the article, Pfizer (辉瑞) is mentioned as one of the major multinational pharmaceutical companies. After Trump announced his executive order targeting drug prices, Pfizer’s stock price rose by 3.64% on the day. This stock market reaction suggests that investors do not view the executive order as a serious threat to the company’s business for now, reflecting uncertainty about the actual impact and implementation details.
- Caremark
- Caremark is one of the three major Pharmacy Benefit Managers (PBMs) in the United States, alongside Evernorth and Optum Health. These three companies collectively control about 80% of the U.S. prescription drug market. PBMs like Caremark negotiate drug prices with pharmaceutical companies and insurance providers, impacting what patients pay for medications and are often criticized for their role in driving up drug costs due to non-transparent rebate and profit mechanisms.
- Evernorth
- Evernorth is one of the three major Pharmacy Benefit Manager (PBM) companies in the United States, alongside Caremark and Optum Health. Together, these three control about 80% of the U.S. prescription drug market. PBMs like Evernorth play a crucial role in negotiating drug prices between pharmaceutical companies and insurers, and their practices are often cited as contributing to rising drug costs in the country.
- Optum Health
- Optum Health is one of the three major pharmacy benefit managers (PBMs) in the United States, alongside Caremark and Evernorth. Together, these companies dominate about 80% of the U.S. prescription drug market. PBMs act as intermediaries between insurance companies and pharmaceutical companies, negotiating drug prices and rebates, and play a significant role in the complex U.S. drug pricing system.
- Latitude Health
- Latitude Health is a healthcare strategy consulting firm. Its founder, Zhao Heng, is cited in the article explaining the U.S. pharmaceutical pricing structure, including the roles of list and net prices and the influence of pharmacy benefit managers (PBMs) on drug costs, as well as the closed nature of price negotiations between insurers and pharmaceutical companies.
- PhRMA
- PhRMA (Pharmaceutical Research and Manufacturers of America) is a major U.S. pharmaceutical industry association. In response to Trump's drug pricing executive order, PhRMA publicly supported lowering drug prices but argued that intermediaries like Pharmacy Benefit Managers (PBMs), rather than drug manufacturers, are primarily responsible for high prices, claiming PBMs and insurers capture a large share of drug spending that could otherwise benefit patients and lower their costs.
- BIO (Biotechnology Innovation Organization)
- BIO (Biotechnology Innovation Organization) is the world’s largest biotechnology trade association, representing biotech companies, academic institutions, state biotechnology centers, and related organizations. In the article, BIO’s President and CEO, John F. Crowley, expressed concerns that “Most-Favored-Nation” pricing policies could severely harm U.S. small and mid-sized biotech firms, impacting innovation, patient care, jobs, and America's leadership in biotechnology.
- ClinChoice
- ClinChoice is a Contract Research Organization (CRO) company, also known as a CXO (Clinical Research Outsourcing). Zhang Dan, co-founder of ClinChoice, is quoted in the article, commenting that the impact of Trump's drug price executive order remains uncertain, and that the final implementation and effects will depend on forthcoming details and policy stability.
- BeiGene
- BeiGene is a Chinese innovative pharmaceutical company mentioned in the article as an example of firms relying on expectations of U.S. market sales for financing and valuation. Its lymphoma drug Brukinsa (泽布替尼) sells for $67.98 per tablet in the U.S., outperforming its price in China. In Q1 2025, Brukinsa’s global sales reached 5.692 billion RMB, with over 70% from the U.S. market. Recent U.S. drug pricing reforms have impacted BeiGene's stock price.
- Hutchmed
- Hutchmed is a Chinese innovative pharmaceutical company mentioned in the article. It has achieved significant sales with some of its products in the U.S. market. During the recent developments regarding U.S. drug price controls, Hutchmed's stock price fluctuated—dropping by 3.56% on the Hong Kong Stock Exchange and 2.04% on the U.S. market. The article suggests that U.S. policies could impact Hutchmed's valuation and sales expectations.
- Akeso, Inc.
- Akeso, Inc. is a Chinese biopharmaceutical company mentioned in the article in the context of Chinese innovative drug valuation. As of the article's publication, Akeso and Innovent Biologics had market capitalizations of around HKD 90 billion. The article notes that Chinese innovative drug companies like Akeso rely on recognition from the U.S. market because domestic demand alone cannot support their high valuations, highlighting the importance of international market acceptance for their business models.
- Innovent Biologics
- According to the article, Innovent Biologics is a Chinese innovative pharmaceutical company with a recent market value of about HKD 90 billion. Its valuation, like other Chinese innovative drug firms, relies heavily on expectations of sales in the U.S. market. The article suggests that China’s domestic market alone cannot support such high valuations, and potential U.S. policy changes could impact these companies’ financing and growth prospects.
- WuXi AppTec
- According to the article, WuXi AppTec is a leading Chinese Contract Research Organization (CRO) that relies heavily on overseas (mainly U.S.) orders. Its business performance and stock price are closely watched, especially in the context of potential U.S. drug price cuts, which could impact overseas pharmaceutical companies' orders for services like peptide production related to GLP-1 class drugs. The overall impact on WuXi AppTec will depend on how the policy changes are implemented.
- Pharmaron
- According to the article, Pharmaron is mentioned as one of the leading Contract Research Organizations (CROs) in China that relies heavily on overseas orders. Although the article notes that recent stock performance was impacted by strong international orders, it suggests that Pharmaron's costs make up a very small portion of multinational pharmaceutical company revenues, so immediate significant impact from U.S. drug pricing reforms is unlikely.
- Drug Channels Institute
- Drug Channels Institute is cited in the article as a source for pharmaceutical industry data, specifically mentioning its statistics on average drug discount rates among major companies. For example, it notes that Merck’s average discount rate increased from 41% in 2016 to 45% in 2019, and Eli Lilly’s from 50% to 59% during the same period. The institute provides insight into the gap between list and net drug prices.
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