Bloomberg reports that sources inside the Trump Administration indicated yesterday that it may be preparing at least one, if not multiple, Executive Orders focusing on drug pricing. According to the source, the executive orders will focus on directing agencies to examine ways in which drug prices can be mitigated, including drug importation and direct negotiation with drug manufacturers by the Federal government. In addition, the reports indicate that the Trump Administration is interested in examining value based pricing arrangements, which would more easily permit drug manufacturers and payers to negotiate arrangements for products based on the success or failure of the products for patients.

Any effort by Congress and/or regulatory agencies to ease the burden on laws and regulations that restrict the manner in which drugs are reimbursed or discounts on drugs are negotiated would possibly permit these types of arrangements and is something that both the industry and payers have been requesting. This is something that all constituents in the market need to pay attention to over the course of the Trump Administration.