It won't. For any specific good there is an optimum price, for each economy in which it is sold, that yields maximum profit. It is ultimately based on the number of prospective consumers and their buying power. Price it too low and you lose a portion of profit no matter how many people buy. Price it too high and you lose a portion of profit due pricing out potential consumers.
Other countries get drugs for cheap due to their smaller economies. It makes no sense to charge American prices to people in a country who have a fraction of the buying power of the average American. You just make it unaffordable to these people, so they don't buy from you (or more likely ignore your patents and copy your product). Another thing to consider is that pharma companies don't have a choice in many countries with socialized medicine. Committees dictate the prices that the public health plans pay and the pharma companies have to either suck it down or go pound sand.
So yeah, pharma companies have been charging Americans exactly what they can get away with by bilking insurance companies in the wake of Obamacare. And insurance companies protected their bottom line by passing on the costs to us regular folk by skyrocketing our premiums. Our president is saying "No more of your horseshit! You cut us the same deal that you cut these poor-ass countries or you can take a hike!" And Trump knows full well that they have no capability to simply take a hike because they are totally reliant on American medical research funding.
Horrible thought incoming: might not lower prices for US customers as much as raise them for the countries that are getting them cheap.
It won't. For any specific good there is an optimum price, for each economy in which it is sold, that yields maximum profit. It is ultimately based on the number of prospective consumers and their buying power. Price it too low and you lose a portion of profit no matter how many people buy. Price it too high and you lose a portion of profit due pricing out potential consumers.
Other countries get drugs for cheap due to their smaller economies. It makes no sense to charge American prices to people in a country who have a fraction of the buying power of the average American. You just make it unaffordable to these people, so they don't buy from you (or more likely ignore your patents and copy your product). Another thing to consider is that pharma companies don't have a choice in many countries with socialized medicine. Committees dictate the prices that the public health plans pay and the pharma companies have to either suck it down or go pound sand.
So yeah, pharma companies have been charging Americans exactly what they can get away with by bilking insurance companies in the wake of Obamacare. And insurance companies protected their bottom line by passing on the costs to us regular folk by skyrocketing our premiums. Our president is saying "No more of your horseshit! You cut us the same deal that you cut these poor-ass countries or you can take a hike!" And Trump knows full well that they have no capability to simply take a hike because they are totally reliant on American medical research funding.