Part 6/8:
The pharmaceutical sector continues to grapple with concerns beyond tariffs, notably drug pricing regulations. While tariffs have been a relatively manageable issue, pricing policy remains a major overhang that influences investor sentiment and corporate valuations.
Recent discussions with investors reveal that drug pricing has become the most critical issue affecting profit margins and valuation multiples. Many anticipate that upcoming policy announcements, expected as early as September 29th, may bring changes—potentially increasing pricing pressures. Tarif-related leverage that previously existed as a bargaining tool for the administration has waned, shifting focus toward regulatory and legislative avenues impacting drug prices.