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This Market Event Summary analyzes the recent announcement from President Trump to use executive action to implement cost-containment measures, including the use of international reference pricing in Medicare Part B.

The recent announcement from President Trump, which likely will face strong pushback from industry, would negatively affect industry if implemented. As Trump has discussed negotiating with industry over the final version of this rule later this summer, this is likely to elevate pharmaceutical pricing to the fore of the current U.S. Presidential election season. Other reforms included in the series of executive actions include allowing states to develop importation plans for certain prescription drugs from Canada and removing the safe harbor provisions that allow for drug rebates from manufacturers to payers under Medicare. Such changes, if implemented, would further create challenges for industry.

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