Trump Declares War on Pill Pushers With “Most Favored Nation” Bombshell…

Over the weekend, Teflon Don announced he’s signing an executive order to give Big Pharma a taste of its own medicine. The medicine? Implementing a “most favored nation” drug pricing law. Translation: The U.S. government will stop paying Louis Vuitton prices for ibuprofen while Switzerland gets it at Walmart clearance. America, meet your new plug… Europe.

(Source: Giphy) 

Now if you heard a wet, guttural scream echoing out of a Pfizer boardroom somewhere in New Jersey, that was the sound of pharma execs realizing their yacht money might be turning into rowboats. In short, under Trump’s executive order, the U.S.... which currently pays more for prescription drugs than any developed country not run by greedy pigs... would peg its purchase prices to the lowest price paid by any other “developed” nation. If Switzerland pays $70 for Jardiance and Japan pays $35, then Merck better be ready to sell it to Uncle Sam at Japanese clearance rates or go cry into their 10-Ks.

Of course, while this seems White Knight-ish by Trump, this isn’t his first time with the idea. Back in 2020, he tried to drop-kick drug prices with a similar rule for Medicare, but that ultimately got yeeted into the abyss. However this time, Trump isn’t waiting for Congress, the FDA, or anyone else to get in his way. He’s going full executive order. Big Pharma’s calls are going straight to voicemail, and campaign donations? According to Trump, “Not with me”, he posted. Which honestly might be the most politically on-brand mic drop of the month. 

(Source: Wall Street Journal) 

As you can imagine, Big Pharma is big mad with this. The trade group PhRMA, aka the Oceans 11 for overpriced statins, called it “government price setting” and warned it would “hurt patients.” Because nothing protects patients like $611 diabetes meds, amirite? Simply put, not only will this help Grandma afford insulin, but Pharma companies are now looking at a potential $1 trillion hit over the next decade. How so? Well if the government starts demanding global-best prices across all its programs, a few things happen: #1. Pharma margins will get absolutely choked (duh). #2. R&D budgets suddenly get “reevaluated.” (Read: Slashed.) and #3. Some companies might just say “nah” and bail from Medicaid altogether.

Meaning, this is a direct threat and hit to the Big Pharma cartel that has been running point on stiffing Americans for decades (Sup, Martin Shkreli). And unfortunately, the market implications within this sector won’t play nice. If this executive order sticks, you can expect some real movement in healthcare stocks. Anything with heavy Medicare or Medicaid exposure? Vulnerable. Think: AbbVie, Amgen, maybe even Johnson & Johnson if the scope widens. Meanwhile, pharmacy benefit managers (PBMs) like CVS and Cigna’s Evernorth might catch some shrapnel too, depending on how pricing mechanics shift.

(Source: Giphy) 

Oh, and don’t forget the political juice from this. Trump basically just jacked a longtime progressive talking point, added some caps lock, and made it MAGA. Democrats have been trying to curb drug prices for years and watched their bills die in subcommittees and pharma-funded think tanks. Trump just said, “Screw it,” and wrote it into an executive order.

In the end, Trump’s trying to do what no one’s managed in 50 years: turn America into a country that doesn't need a second mortgage to survive allergy season. And if he pulls it off? Big Pharma’s going to catch itself a bigly fever, courtesy of Donald J. Trump. Meaning, keep your head on the swivel with this, and place your bets accordingly, friends. Until next time… 

P.S. Oh, I’m sorry, I didn’t know you liked getting rekt. Let’s face it, retail investors get the short end of the stick all day everyday. It’s the smart money’s world, and we are just living in it–only useful when it comes to liquidity purposes in the market. Meaning, if you’re as pissed off as I was when I found out Milli Vanilli was lip syncing the whole time, then it’s time to go from investing blind, to investing smart. Luckily for you, the key is right here as a Stocks.News premium member. Click here to see exactly how our premium members are printing while others quake in the face of today’s market chaos. 

Stocks.News holds positions in Johnson and Johnson and Merck as mentioned in the article.