Analyst Note
| Damien Conover, CFA |President Donald Trump updated the administration’s healthcare policy to include new drug benefit cards for seniors and executive orders supporting insurance protection for pre-existing conditions and increased clarity around medical billing. We don’t expect any major changes to our fair value estimates or moat ratings based on the announcements, but the updates slightly increase uncertainty within the drug industry. The updates add to executive orders issued over the past two months, including international drug importation, Medicare drug price setting based on international prices, elimination of drug rebates in the supply channel, and the minor expansion of 340b drug discounts (targeting low-income patients) for certain drugs (see July 27 note for more details).