J&J CEO warns of ‘unintended consequences’ of Trump’s drug-price plan

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Johnson & Johnson Chairman and CEO Alex Gorsky informed CNBC on Wednesday he expects the corporate’s pharmaceutical enterprise will have the ability to efficiently navigate any modifications in well being care on account of President Donald Trump’s new plan aimed a lowering drug costs.

On the identical time, Gorsky warned the Trump administration to watch out to not impose “unintended penalties” on the U.S. health-care system, which is extremely complicated. He didn’t elaborate.

“We all know there are going to be modifications within the pricing system. That is why now we have to repeatedly innovate,” Gorsky stated in a “Squawk Field” interview with CNBC’s Meg Tirrell. He added that J&J, whose pharma unit accounted for 47 p.c of 2017 internet gross sales, continues to be analyzing Trump’s plan, which was unveiled on Friday.

Trump’s plan, amongst different modifications, will take into account an alternate system for purchasing Medicare Half B medicine, together with many most cancers therapies and infused biotech medicine.

J&J’s top-selling arthritis drug Remicade, which is roofed beneath Half B, could possibly be affected by Trump’s plan. Gorsky stated the corporate has checked out its whole portfolio and it is reinventing it. He stated two different medicine — Simponi and Stelara, designed to deal with autoimmune ailments — have really exceeded gross sales of Remicade.

Earlier Wednesday, J&J introduced it might relaunch its baby-care merchandise, which noticed a 20 p.c gross sales decline since 2011 to $1.9 billion.

Talking simply hours earlier than the corporate’s every-other-year shopper merchandise and medical gadgets analyst assembly, Gorsky stated J&J is attempting to be extra like a “start-up” with its child model, specializing in the altering wants of “millennial mothers,” who favor child merchandise with extra pure components.

“We notice that over the previous few years that we most likely received a little bit bit behind the curve,” he stated. “However what you are going to hear about right now is that we completely reformulated the model the place we’re altering and ensuring we’re utilizing extra pure components.”



Supply hyperlink – https://www.cnbc.com/2018/05/16/jj-ceo-warns-of-unintended-consequences-of-trumps-drug-price-plan.html

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