The Intelligence from The Economist

Drug war: Trump takes on big pharma

31 snips
May 15, 2025
Shalash Chitnis, a business writer, and Noah Snyder, East Asia Bureau chief at The Economist, dive into the intricate world of U.S. drug pricing chaos. They discuss Trump's bold plan to slash prescription costs, highlighting the potential pitfalls of his tariffs on pharmaceuticals. The conversation shifts to the cutting-edge cyber threats from North Korea, revealing how hackers capitalize on cryptocurrency amid global tensions. Additionally, they pay homage to Alvaro Mangino, sharing the harrowing tale of survival against all odds in the Andes.
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INSIGHT

Trump's Drug Price Cut Plan

  • Trump's executive order seeks to cut US drug prices to the lowest level in other rich countries.
  • However, vague details and industry resistance could hinder effective implementation.
INSIGHT

US Market Profits Fund Innovation

  • Pharma argues high US drug prices fund vital R&D while other countries' prices are too low.
  • Reducing profits in the US market risks slowing new drug development globally.
INSIGHT

Tariffs Threaten Pharma Supply Chains

  • Pharma executives fear tariffs more than drug price cuts due to manufacturing and IP complexities.
  • Onshoring drug production is costly and time-consuming, complicating tariff compliance.
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