(Evan Vucci/Associated Press)The drug price reforms that President Trump recently proposed are as potent as a placebo, but not as harmless. Trump once blustered that drug firms were “getting away with murder,” but his real-life plan caused pharmaceutical stocks to surge as investors foresaw even higher prices and profits ahead. The president stepped away from his earlier promises to allow Medicare to negotiate prices, while vowing to fight for higher drug prices abroad — a gold mine for the industry that would do nothing to reduce drug prices at home. With Fortune 500 drug firms raking in $67.7 billion in profits in 2016, more revenue is the last thing the industry deserves. While drug price negotiations — as Trump once recognized — can help, they may not always suffice.

Source: Washington Post May 23, 2018 09:56 UTC