Pfizer Inc. (NYSE:PFE) is one of the best wide moat stocks to buy now. On June 9, Pfizer, along with other drug manufacturers, had a meeting with the Trump administration to talk about reducing US drug prices. However, Pfizer’s chief executive, Albert Bourla, mentioned that no commitments have been agreed upon.
President Trump ordered drugmakers last month to slash the prices of their medicines so they match what other countries are paying. As per this executive order, the government was to select “Most Favored Nation” target prices in 30 days. The Department of Health and Human Services called for drugmakers in the United States to revise their prices to align with the lowest price paid by similar high-income countries.
At the Goldman Sachs Global Healthcare Conference, Albert Bourla commented:
“I don’t know what we will hear in 30 days,”
Reiterating Pfizer’s focus on high-level ideas, Bourla added:
“The administration already started series of meetings with companies. … The meetings were cordial, but they were not digging into the substance,”
A medical technician wearing protective gloves and a mask mixing a biopharmaceutical solution.
For now, it is unclear how the US government will bring down drug prices, and this policy will be hard to execute, as per analysts and legal professionals. A spokesperson commented that Health Secretary Robert F. Kennedy, Jr. would launch a system where American patients can directly buy their medicine from drug makers that sell to Americans at a “Most-Favored-Nation” price.
Pfizer’s Bourla was hopeful that, due to American pressure on European nations to pay higher prices, the overall drug prices could rise. He stated that if America starts controlling prices, Pfizer Inc. (NYSE:PFE) could withhold drugs for government reimbursement in some countries if they do not increase prices there. He clarified:
“I don’t think we will remove our products from the markets there – we will just remove them from reimbursement. We will leave them in open market.”
Pfizer manufactures and sells biopharmaceutical products worldwide, catering to heart health, infectious diseases, migraines, immune disorders, and cancer.
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