Eli Lilly's CEO Discusses Policy Focuses for a Potential Second Trump Administration

By Patrick Wingrove

Eli Lilly (NYSE: LLY) CEO David Ricks addressed the Economic Club of Washington on Tuesday, highlighting tax and regulation reform and drug affordability as key policy focuses for the pharmaceutical company in the event of a second Trump administration.

Last week, President-elect Donald Trump met with Ricks and PhRMA's CEO in Florida, with Pfizer (NYSE: PFE) CEO Albert Bourla also in attendance.

During an interview with Carlyle Group cofounder David Rubenstein, Ricks did not disclose specific details about the discussions or the reforms being targeted. He noted that the regulatory environment in the U.S. has deteriorated for the pharmaceutical industry over the past four years.

Ricks stated, "My experience having done this for eight years is there's often more common ground than you think." He suggested the Trump administration might advocate for other developed nations to pay more for medications, potentially allowing for lower prices in the U.S., where citizens currently bear the highest drug costs globally.

Executives from drug companies have indicated they intend to push for changes to the recent legislation enabling Medicare to negotiate prices for its most expensive prescription drugs, and to reform regulations concerning pharmacy middlemen.

Ricks mentioned that Lilly has reduced some insulin costs to $35 a month by cutting the compensation received by middlemen.

Additionally, anti-vaccine activist Robert F. Kennedy Jr., whom Trump has nominated to lead the nation's top health agency, was present at the meeting with the president-elect. Reports suggest that discussions included potential collaboration between public and private sectors to find cancer cures, among other topics.