Donald Trump's recent executive orders slashing drug prices and demanding transparency in pharmacy benefit manager fees are putting pressure on drug industry middlemen, according to Benzinga. Thomas Shipp of LPL Financial warned that domestic price-cutting pressures could erode pharmaceutical companies' pricing power and weigh heavily on their share prices by compressing margins. Shipp noted that PBMs are facing scrutiny for opaque pricing practices, including retaining manufacturer rebates and using "spread pricing" in drug distribution. CVS Caremark, Express Scripts, and OptumRx are the largest pharmacy benefit management companies in the U.S. Billionaire investor Mark Cuban called PBMs a “racket” on X, criticizing them for negotiating rebates instead of drug prices.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02Donald Trump's recent executive orders slashing drug prices and demanding transparency and
00:08pharmacy benefit manager fees are putting pressure on drug industry middlemen.
00:13Thomas Shipp of LPL Financial warned that domestic price-cutting pressures could erode
00:19pharmaceutical companies' pricing power and weigh heavily on their share prices by compressing
00:25margins. Shipp noted that PBMs are facing scrutiny for opaque pricing practices, including retaining
00:33manufacturer rebates and using spread pricing in drug distribution. CVS, Caremark, Express Scripts,
00:43and OptumRx are the largest pharmacy benefit management companies in the U.S. Billionaire
00:49investor Mark Cuban called PBMs a racket on X, criticizing them for negotiating rebates
00:57instead of actual drug prices. For all things money, visit Benzinga.com slash GSTV.