How will Trump affect biopharmaceutical companies?
Trump has always emphasized the need to lower drug prices, and if he can promote the implementation of relevant policies after being elected, it will be beneficial for ordinary people. This will prompt pharmaceutical companies to re-examine their drug pricing strategies, lower some drug prices, and improve drug accessibility.
Trump has stated that he will align the prices of drugs in the United States with the prices of the same drugs in other countries, forcing drug manufacturers to raise the foreign prices of drugs while lowering domestic prices.
Although Trump has the idea of reducing drug prices, there is uncertainty in the formulation and implementation of specific policies. Moreover, measures to reduce drug prices may affect the profit margins of pharmaceutical companies, thereby affecting their investment in research and development.
If pharmaceutical companies reduce their research and development funds due to declining profits, it may hinder the innovative development of the biopharmaceutical industry and slow down the pace of new drug development.
Stricter regulation: Trump has appointed Robert F. Kennedy Jr. to be in charge of health-related work. Kennedy has been controversial for his anti vaccine rhetoric and conspiracy theories, and his attitude towards the FDA is more radical, believing that the FDA has too close ties with large pharmaceutical companies.
If Trump is elected, under Kennedy's influence, the FDA may face significant pressure for reform. On the one hand, the reform may strengthen the supervision of drug approval, improve the standards and transparency of approval.
On the other hand, overly radical reforms may also lead to cumbersome approval processes, prolong the time for new drugs to be launched, and increase the research and development costs and time costs of enterprises.
Harris vs Trump: How will the US election affect biopharmaceutical companies?
The highly protectionist Biosafety Act is expected to be enforced, and Trump is expected to firmly enforce the Act, which aims to promote the return of manufacturing to the United States. For the biopharmaceutical industry, this may prompt some pharmaceutical companies to relocate their production processes back to the United States.
For companies like WuXi AppTec that have a large amount of business overseas, they may need to adjust their industrial chain layout to meet regulatory requirements in the United States.
The environment of increased cash flow and reduced tax burden for American pharmaceutical companies, with Trump advocating for lower corporate tax rates and quantitative easing. For biopharmaceutical companies, this may reduce their tax burden, increase their cash flow, facilitate research and development investment, and expand production scale.
White House: Whether Harris or Trump wins, they will support biomanufacturing and synthetic biology!
