Political theatre in the U.S., strategic tailwind in Europe — the reality behind Trump’s drug pricing order

Last week, President Trump announced a “Most Favored Nation” policy that would force pharma companies to give the U.S. the lowest global price for drugs. The promise? A 59% price cut.

Let’s be clear: Trump is right that Americans pay significantly more for prescription drugs. But this executive order isn’t the fix. It’s voluntary. There’s no enforcement mechanism. That’s why pharma stocks dipped - and then immediately bounced back. The market sees this for what it is: a soundbite, not a solution.

Real reform won’t come via executive order. It requires Congress – and a serious commitment to fix structural issues, including the fact that nearly half of every dollar spent on medicines goes to intermediaries, not manufacturers.

The bigger picture? This dysfunction reinforces a shift already underway. Europe, with its centralised, negotiated pricing and predictable reimbursement systems, is becoming increasingly attractive for innovators, patients and investors. The contrast is growing — and for those focused on Europe, so is the opportunity.