Big Pharma Pushes Back as Stocks Drop
A Bold Move to Cut Costs
Former President Donald Trump has reignited a major policy push. His target? Soaring drug prices in the United States.
Over the weekend, Trump announced a sweeping plan to slash medication costs by 30 to 80 percent. Posting on Truth Social, he pledged to implement a “most-favored-nation” policy. This would force drugmakers to sell medicines in the U.S. at the same price offered in the cheapest country globally.
This initiative hits at the heart of Big Pharma’s profit machine. The U.S. pays more for medicine than any other nation. Trump wants that to end.
Markets React Sharply
Swiss pharmaceutical giants took a financial hit on Monday. Shares of Novartis fell 2.8 percent. Roche dropped 3.2 percent. Lonza plunged by 3.5 percent.
The reason was clear: Trump’s announcement threatens their business model. These firms rely heavily on the U.S. market. Half of Switzerland’s pharmaceutical exports go to America.
A cheaper U.S. market means reduced margins. Investors aren’t happy.
Industry Cries Foul
Big Pharma did not take the news well. Trade groups voiced concern. Scienceindustries, a Swiss association, called the policy “economically incomprehensible.”
Their argument? Lower prices reduce innovation. They claim that poor countries could suffer too. Interpharma, another industry group, echoed the concern. They warned the plan could stall investment and harm future research.
But critics say this is fearmongering. Drugmakers make billions in profit. High prices often have little to do with innovation—and everything to do with monopoly power.
Tariffs Still Loom
Trump may not stop at pricing. He has hinted at adding tariffs to imported drugs. Currently, pharmaceutical goods are exempt. But that could change soon.
A week ago, he promised to announce new tariff levels within two weeks. If implemented, this would shake the global drug supply chain. Swiss firms are especially exposed.
In response, companies are shifting strategy. They are pouring money into U.S.-based manufacturing. The goal is to dodge potential tariffs.
Corporate Charm Offensive
Big Pharma isn’t just lobbying. It’s courting Trump directly. Novartis CEO Vas Narasimhan recently visited the White House. Trump praised him on camera for promising a $23 billion U.S. investment.
Roche promised even more—$50 billion for domestic operations. The message is clear: play ball or pay tariffs.
But for many, this cozy relationship is troubling. Big Pharma wants to preserve its grip on pricing, even at the cost of American families.
A Blow to Swiss Industry
Switzerland’s economy depends heavily on pharmaceuticals. A recent study by Wellershoff & Partners highlighted this. Without the chemical and pharma sectors, the nation’s per capita wealth would have declined last year.
That’s why Trump’s move is hitting nerves. If the U.S. stops overpaying for drugs, Swiss profits—and national prosperity—could take a hit.
Yet the bigger question remains: Should American citizens continue to bankroll Big Pharma’s global profits?
Trump’s Message to Voters
Trump’s announcement isn’t just economic—it’s political. Lowering drug prices has long been a bipartisan goal. But administrations have struggled to confront powerful pharmaceutical firms.
Trump appears willing to do it. His bold tone resonates with many voters who struggle to afford their medications. And while industry insiders complain, average Americans may finally see relief.
With an election looming, this could be a game-changer.
The Bottom Line
Trump’s proposal strikes a populist chord. He’s challenging an industry long shielded by influence and wealth. Pharmaceutical companies are worried—and rightly so.
If implemented, Americans may pay less for essential drugs. But for Big Pharma, the golden days of endless profits could be numbered.
The fight has only just begun.
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