Article Summary Pharma Navigates A New Administration

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Lisa M. Jarvis (2017) Pharma Navigates A New Administration, Empty threats and promises from Trump left drug makers grappling with uncertainty, Chemical and Engineering News.
There were huge uncertainties at the beginning of the Trump administration to drug makers after he made outrageous remarks on Jan 11 as a president elect. Even before he was sworn in the president elect, Donald Trump called the drug makers as companies that easily ran away with murder. This statement by a president elect did more harm than good. It only turned out once of the many out of the cuff remarks pharmacists would have to grapple with during Trump administration. This statement created fear and uncertainty as the same day he made these remarks the biotex stock index responded with a three percent drop. Trump perhaps after realizing his guff has proposed laws that encourage repatriation of companies with an aim of getting the overseas money back to America. We only he succeeds in this ambitious plan, he has placed incentives of about ten to fifteen percent for repatriation of the drug makers.
One of the key findings from the article is that the price negotiation in the US during Trump administration has suffered a setback due to lack of good will from the government of the day. There is uncertainty that will affect the healthcare system since the administration is unpredictable. Many people would prefer a clear policy plan to aid the planning and create some stability in the health sector. Bruce booth has noted with a lot of concern that the move by Trump to make off mark comments jeopardizes the health sector in general. In such a case few people stand to gain, but majority would only appreciate a predictable, consistent and a measured government. Health care reform has been pushed through congress to no avail therefore taking much of the administrations time and resources. The drug makers have been left with one option only after the failure of reforms through congress and that s tax reforms.
Without tax reforms the US will continue losing billions overseas ,as noted Ernst & Young in their 2016 estimates. The report estimates that over $150 billion is stashed in foreign countries due to high corporate tax in the USA. The tax carded in the USA has been a major impediments in the expansion of the pharmaceutical companies, leading to some considering radical changes such as shifting their headquarters to overseas countries in order to evade to evade the exorbitant tax charged in the USA.I t in the back of this exodus of big pharmaceuticals that president Trump has softened his position to try bring back some of the international pharmacy firms .Ambar has noted tha...