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Trump's order on drug prices rattles industry nerves in UK
The Observer
|May 18, 2025
"Pharmageddon!" screamed the headlines before Donald Trump's executive order last week, demanding drug prices be cut by 30%-80%.
When the order proved thin on details, pharma shares bounced back.
Yet drug industry leaders remain nervous about what comes next, including in Britain. AstraZeneca and GSK, accounting for 10% of the value of the FTSE 100, rely heavily on US sales. Caught between a tariff-loving populist president, a regulator struggling with huge budget and staff cuts, and an anti-vaxxer health secretary, the industry seems in for a wild ride.
The order requires the cost of a drug in the US to be no higher than the cheapest price paid for it in other developed countries. Trump argues the US is paying higher prices to cover the cost of developing medicines, which are sold more cheaply abroad.
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