Drug pricing

A shift in congressional control could alter the legislative path of several key issues, including drug pricing reform, the implementation of Medicaid work requirements, National Institutes of Health funding, and the future of enhanced ACA subsidies.

In our view drug pricing is no longer at the top of Washington's agenda, and in Q3 healthcare added value for the first time since launch.

Pharmaceutical companies have also spent much of the past year adapting their commercial plans to the new Most Favored Nation pricing and tariff regime.

The Trump administration’s continued push to codify “most favored nation” (MFN) drug pricing into law raised concerns about long-term U.S. revenue growth, and the expiration of Novo Nordisk’s semaglutide patent in India in March 2026 opened the door for generic GLP-1 competition in emerging markets, adding to broader investor concerns about pricing power.