Trump launches social media poll on new executive order to lower drug prices

Summary

On his social media platform, Donald Trump initiated a poll asking for support for a new executive order he claims would lower prescription drug prices by up to 500% or more.Zhitong This move follows the planned unveiling of a “TrumpRx” website and is part of a broader pattern of using executive actions and populist rhetoric to address high drug costs.marketscreener Previous, similar “most-favored-nation” policies have been legally challenged and blocked, and market analysts remain skeptical about the feasibility of such drastic, government-mandated price cuts given the complexity of the U.S. pricing system.

Impact Analysis

This is less about policy and more about political theater. The 500% price cut figure is an absurd, headline-grabbing number designed to energize his base on Truth Social, not a workable plan.Zhitong Remember, the market has seen this playbook before—his last attempt at a “most-favored-nation” pricing rule was blocked by courts, and pharma stocks actually rallied, signaling disbelief. The real signal here is that drug pricing remains a go-to political weapon. This creates persistent headline risk for the entire pharma and biotech sector (PFE, LLY, IBB), acting as a cap on valuations. While the direct implementation risk is low, the noise level will be high. This is a recurring theme that forces companies into a defensive posture. The trade isn’t to short pharma on this news—the market is too smart for that. The smarter play is to sell volatility; write calls on the sector ETFs (like XBI) as this political noise will likely keep a lid on any major breakouts.