Impact of Trump's Second Term on the Healthcare Industry
Key Issues:
* China and Tariffs
* Drug Pricing
China and Tariffs:
China is a significant market for pharmaceutical companies and a major source of API. Trump's pro-business stance may conflict with Congressional efforts to pass the Biosecure Act, which could disrupt the supply chain and increase costs.
Drug Pricing:
Drug pricing is a focus for both Republicans and Democrats. The Biden administration's Medicare drug pricing negotiations may set a precedent for more aggressive negotiations in the future. Trump may attempt to revisit lowering overall drug costs but faces challenges.
Other Impacts:
* Tariffs on medical supplies and devices could increase costs for patients and insurers.
* Trump may seek to reduce Medicare Part D drug prices through negotiations.
Analyst Outlook:
Analysts anticipate clarity on policy changes early in 2025. They expect drug pricing to become a more pressing issue later in the year, potentially in 2027.