
The Readout Loud
353: Trump's drug-pricing plan and a potential Theranos 2.0
May 15, 2025
Daniel Payne, STAT's D.C. correspondent specializing in health policy and pharma, dives into the complexities of President Trump's aggressive drug pricing policy aimed at making U.S. prices competitive with other nations. He also discusses the mixed outlook for biotech markets and the potential launch of a new blood-testing company founded by Billy Evans, which draws parallels to the notorious Theranos. The episode paints a vivid picture of skepticism in the industry as market fluctuations and past scandals loom large.
25:47
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The mixed sentiment in biotech markets highlights investor frustrations over funding and the emergence of 'zombie biotechs' making tough decisions.
- President Trump's drug-pricing plan faces skepticism due to its vague details and potential legal hurdles from pharmaceutical companies.
Deep dives
Current Mood in Biotech
Biotech sentiment appears mixed as the sector faces challenges that lead to frustration rather than outright despair among investors. Despite a brief uptick in stock performance, biotech stocks overall lag behind broader market recoveries since early April, mostly due to persistent concerns over funding, inflation, and high interest rates. Analysts note that while indices measuring small to mid-cap biotech firms have shown some recovery, the year-to-date performance remains bleak. Companies that are struggling, referred to as 'zombie biotechs,' are starting to make difficult decisions, with some considering liquidations rather than prolonging financially unsustainable operations.