Celltrion Sees Opportunity in Trump Drug Pricing Order

[Seungkwon Kim, Edaily Reporter] Celltrion responded positively to former U.S. President Donald Trump’s executive order aimed at lowering domestic prescription drug prices to levels on par with those in other countries. The company identified three opportunity areas stemming from the policy and published the analysis on its official website.

According to Celltrion, the executive order is designed to reduce the amount Americans pay for prescription drugs by aligning U.S. prices with the lowest available in other nations. Key elements include:

The U.S. Secretary of Health and Human Services (HHS) is instructed to develop a program allowing patients to purchase prescription drugs at the “most-favored-nation” (MFN) price. HHS must inform pharmaceutical companies of the MFN pricing goals within 30 days.

The policy is expected to improve inefficiencies in the drug distribution system, particularly targeting pharmacy benefit managers (PBMs), while also driving down prices for high-cost drugs. Celltrion stated that these changes could foster a more favorable business environment and detailed the specific areas in which it expects to benefit.

◇ Opportunities from Streamlined Distribution

One of the most significant aspects of the order is the overhaul of the U.S. drug distribution network, particularly the role of PBMs. Celltrion sees this as a positive development for its U.S. operations.

Pharmaceutical giants that have historically relied on high-margin original biologics and exercised control over distribution through PBMs are expected to lose some of their leverage. This shift could level the playing field for biosimilar manufacturers like Celltrion that compete on price.

In particular, direct pricing negotiations between biosimilar companies and the government by passing PBMs could create mutually beneficial outcomes for both parties.

Price Reductions Could Accelerate Biosimilar Adoption

Another core aspect of the executive order is its focus on lowering prices for expensive drugs.

Currently, U.S. insurance and PBM systems prioritize high-priced original biologics, with only limited competition allowed from biosimilars. Due to PBM rebates and other intermediary incentives, biosimilars are often priced close to the original products, limiting actual savings for patients and stalling market growth compared to Europe.

However, the policy’s emphasis on reducing intermediary influence is expected to lower the real-world prices of biosimilars. That, in turn, could accelerate their prescription volume in a manner similar to the European model. Celltrion noted that its biosimilars currently sell in the U.S. at prices not significantly higher than in Europe.

The company also pointed to opportunities from the potential expansion of parallel imports if the MFN pricing strategy leads to increased cross-border drug supply.

Such a change could allow Celltrion to launch additional products in the U.S. market. With an established direct sales network in the U.S. and experience in Europe, the company believes it can use its broader product portfolio and marketing know-how to drive sales growth.

“This executive order, upon thorough review, appears favorable to biosimilar manufacturers,” said a Celltrion spokesperson. “It could present a significant opportunity, especially for companies like Celltrion that already conduct direct sales of biosimilars in the U.S.”

The spokesperson added that Celltrion will continue to monitor the U.S. government’s implementation of the policy and respond with flexible, adaptive strategies as the situation evolves.