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19 handpicked stocks

Pharmaceutical Policy Shift Explained | Pricing Models

The Trump administration's recent drug pricing agreements with major pharmaceutical companies like AstraZeneca and Pfizer aim to lower U.S. drug costs by tying them to international prices. This creates a potential investment opportunity in pharmaceutical firms with strong domestic production and those in the healthcare supply chain that can adapt to the new pricing landscape.

Author avatar

Han Tan | Market Analyst

Published on October 12

Your Basket's Financial Footprint

Market capitalisation breakdown for the basket 'Pharma's New Pricing Paradigm'.

Key Takeaways for Investors:
  • Large-cap concentration tends to reduce volatility, offering more stable, lower-risk returns that track broader market moves.
  • Suitable as a core portfolio holding for steady exposure to healthcare, not as a speculative high-growth trade.
  • Likely to deliver gradual, long-term value appreciation rather than rapid, short-term gains.
Total Market Cap
  • LLY: $788.86B

  • MRK: $214.78B

  • CVS: $98.80B

  • Other

About This Group of Stocks

1

Our Expert Thinking

The Trump administration's drug pricing agreements with major pharmaceutical companies like AstraZeneca and Pfizer represent a fundamental shift towards most-favoured-nation pricing. This policy change could reshape industry profitability and create new opportunities for companies that can adapt to the evolving healthcare landscape.

2

What You Need to Know

This group focuses on pharmaceutical companies with strong domestic manufacturing capabilities and key players in the healthcare supply chain. These firms may be more resilient to pricing pressures or could benefit from new market dynamics as the industry adapts to government-controlled pricing models.

3

Why These Stocks

These stocks were handpicked by professional analysts based on their potential to navigate the new pricing paradigm. The selection includes pharmaceutical producers, distributors, and healthcare service providers positioned to adapt to significant policy changes that may reshape the entire sector.

Why You'll Want to Watch These Stocks

🏥

Policy-Driven Opportunity

Trump's drug pricing agreements with major pharma companies signal a fundamental shift in how the U.S. healthcare system operates. Companies that adapt quickly could gain significant competitive advantages.

💊

Supply Chain Resilience

Firms with strong domestic manufacturing and distribution networks may be better positioned to navigate new pricing pressures whilst maintaining profitability in this evolving landscape.

📈

Market Transformation

The move towards most-favoured-nation pricing could create winners and losers across the pharmaceutical sector. Early positioning in adaptive companies could prove rewarding as the industry reshapes itself.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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