With a re-election race underway and the country hit hard by the
coronavirus pandemic, the White House has reportedly been
considering tying drug prices to what consumers outside the
United States pay.
Trump, who had previously urged lawmakers to rein in drug costs,
will deliver remarks and sign the executive orders at 3 p.m. EDT
(1900 GMT) on Friday, according to the president's schedule
issued by the White House on Thursday.
Drugmakers often negotiate rebates or discounts on their list
prices in exchange for favorable treatment from insurers and
other healthcare payers. As a result, insurers and covered
patients rarely pay the full list price of a drug.
Elimination of rebates is likely not included in the orders,
Politico reported on Thursday. (https://politi.co/3huHoV0)
Such an order would be positive for health insurers UnitedHealth
Group Inc <UNH.N>, Cigna Corp <CI.N> and CVS Health <CVS.N>,
said Mizuho analyst Ann Hynes.
Shares of major U.S. drugmakers, including Johnson & Johnson <JNJ.N>,
Merck & Co Inc <MRK.N>, and Pfizer Inc <PFE.N>, were flat to
marginally down before the opening bell.
(Reporting by Manas Mishra in Bengaluru; Editing by Shinjini
Ganguli)
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