1. Trump signs order reducing drug prices by 30%-80%. 2. Amgen and major pharma companies agree to lower prices. 3. Most favored nation policy links U.S. prices to global rates. 4. Direct-to-consumer website TrumpRx to launch in January. 5. U.S. drug prices are significantly higher than international rates.
FAQ
Why Bearish?
Amgen's price reductions may lead to decreased revenues. Historical precedents show similar pricing pressures affecting pharmaceutical stocks negatively.
How important is it?
The executive order directly involves Amgen and affects pricing, crucial for its U.S. market. Active involvement in the policy can impact investor sentiment and stock performance.
Why Short Term?
Immediate effects on Amgen's pricing strategy and revenue will manifest as regulations take effect. Recent examples, such as the Medicare price negotiations, had swift impacts on affected pharmaceutical stocks.