The department wants drugmakers to match U.S. prices for brand-name drugs—those without generic or biosimilar competition—with the lowest prices offered in certain developed countries.
This development came as good news for generic and biosimilar drugmakers, as the pricing push appears to target only branded drugs. Analysts told Reuters that generics likely won’t be affected.
As a result, Indian pharma stocks jumped up to 4% on May 21. The Nifty Pharma index rose 1.7%, rebounding from a 1.3% drop in the previous session, with 18 of 20 stocks in the index posting gains.
By 11:18 a.m., Gland Pharma shares rose 3.5%, while Natco Pharma and Cipla climbed 2.39% and 2.32%, respectively. Biocon and Granules also saw gains of over 2%. Sun Pharma rose 2% ahead of its Q4 earnings.
HHS clarified that the pricing target applies to brand-name drugs lacking generic alternatives, and prices should match the lowest offered to any OECD country with a GDP per capita of at least 60% of the U.S. level.
Although the Trump-era proposal aims to slash prescription drug prices by 59% to 90%, analysts and legal experts say it could be hard to enforce and may face legal hurdles.
