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Good morning. completion months of waitingThe Trump administration last week launched TrumpRx.gov, a direct-to-consumer platform that offers 43 brand-name prescription drugs with varying levels of discounts. I spoke with CEOs in all parts of the healthcare industry, from drugmakers and insurers to leading digital health platforms that are now competing with—and collaborating with—the new government site. “This is another platform that Americans can use to compare prices,” he said Wendy Barnes, CEO of GoodRx, one of TrumpRx’s many platform partners. “For now, I rate it as positive from our perspective because it expands our reach and aligns with our mission.”

So what’s the takeaway for leaders looking at rising health care costs?

It may not be suitable for those with insurance. Many of the listed prices are higher than what 92% of the US population currently pays because they have insurance, and the site does not include low-cost generic drugs. People on government plans may not be eligible to use the discounts. Additionally, money spent on TrumpRx does not count toward the annual deductible or out-of-pocket maximum. Where it saves money: some fertility drugs or GLP-1 that are not covered by insurers.

It does not affect Big Pharma’s business model. No drug maker would accept a site that said: “Thanks to President Trump, the days of Big Pharma price gouging are over.” But as one CEO argues: “We negotiate the same prices with other DTC (direct to consumer) platforms. It’s just a label.” Many of the drugs are off-patent or already offered at deep discounts. What’s not on the platform: Merck’s useful cancer drug Keytruda, Bristol Myers Squibb’s blood thinner Eliquis, Abbvie’s Humira, Rinvoq and Skyrizi, as well as Dupixent, jointly developed by Regeneron and Sanofi. If there is a hero behind TrumpRxIT Pfizer CEO Albert Bourla, whose company produces 31 of the 43 listed drugs.

This may affect the innovation of the industry. There are many arguments and ideas to bring more transparency, flexibility and consumer choice in the area of drug pricing. Most involve removing regulatory barriers to encourage innovation, not an executive order for a platform that bears Trump’s name, increasing the likelihood that it will only last his term. Existing platforms now have to compete for mindshare with a rival government. Also raises questions: TrumpRx’s relationship with vendor BlinkRx, where Donald Trump Jr. sits. As such, many hailed the effort as an important step in addressing rising health care costs. Barnes said: “I think just shining a spotlight on the idea that consumers have power when it comes to shopping for drug pricing is a lesson we’ve learned as Americans.”

Contact CEO Daily by Diane Brady at [email protected]

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