JPMorgan sees ‘most favored nation’ drug order facing ‘significant push back’

Following President Trump’s Executive Order on “most favored nation” pricing for pharmaceuticals in the U.S., JPMorgan analysts Richard Vosser and James Gordon provided initial thoughts on the potential impact to European Pharma Large Cap drugmakers, arguing that the changes would likely require Congressional support and cannot be implemented through just the EO, with the program likely to face challenges in the courts. Overall, the firm sees the path to implementation of this Executive Order as “challenging and likely to face significant push back” from Congress, pharma companies, PBMs and hospitals, which it contends likely limits the impact on EU drugmakers such as AstraZeneca (AZN), GSK (GSK), Novartis (NVS), Roche (RHHBY), Sanofi (SNY) and Novo Nordisk (NVO).