Economist Podcasts Drug war: Trump takes on big pharma
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May 15, 2025 
Shalash Chitnis, a business writer at The Economist, joins Noah Snyder, East Asia Bureau chief, and Catherine Nixey, culture correspondent, to delve into pressing topics. They discuss Trump's plan to cut drug prices and its potential drawbacks for consumers. The podcast also uncovers North Korea's alarming cryptocurrency heists, revealing significant thefts tied to sophisticated hacking operations. Additionally, they pay tribute to Alvaro Mangino, reflecting on his survival story from the Andes crash and its moral implications.
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Trump's Drug Price Cuts Unclear
- Trump's executive order demands drug companies lower US drug prices to the lowest in other rich countries.
- However, the order is vague and likely needs Congress approval, making its impact uncertain.
US Pharma Profits Crucial for R&D
- US accounts for 40% of pharma sales but 65% of profits, so price cuts could hurt R&D investments.
- Pharma firms might exclude some markets or offer confidential rebates to protect profits.
Tariffs Threaten Pharma Manufacturing
- Tariffs pose a greater threat than price cuts, potentially forcing pharma to onshore manufacturing and intellectual property.
- Onshoring is complex and costly, involving manufacturing and relocating IP to the US.