Headline:
“Big Pharma’s Golden Era: How the Last Administration Gave the Industry a Blank Check”
Byline:
By [khadija khan] | May 12, 2025
intro
In recent years, the U.S. pharmaceutical industry has experienced one of its most profitable periods in modern history—thanks, in large part, to a policy environment shaped by the previous administration. While current executive orders aimed at lowering drug prices are being heralded as revolutionary by some, critics argue they’re simply damage control for years of unchecked corporate power.
During the last administration, Big Pharma found itself in a regulatory climate more favorable than any in recent memory. A combination of loosened restrictions, aggressive deregulation, and the blocking of Medicare price negotiations allowed pharmaceutical companies to flourish—at the expense, many argue, of public health and affordability.
Deregulation and Dereference
One of the most controversial moves came early in the administration’s term: the rollback of FDA oversight processes under the banner of “innovation.” The 21st Century Cures Act—though bipartisan in origin—was supercharged by administrative policies that reduced clinical trial standards and expedited drug approvals, often without sufficient safety data.
According to a 2021 report by The Lancet, the percentage of new drugs approved without randomized control trials increased significantly between 2017 and 2020. Critics warned this could flood the market with expensive medications of uncertain benefit. (Source: The Lancet, “Regulatory Trends in Drug Approval”, 2021)
The Price of No Negotiation
While campaigning on promises of lower drug costs, the administration repeatedly blocked legislative attempts to allow Medicare to negotiate prices directly with pharmaceutical companies—a provision that is standard in most industrialized nations. According to the Congressional Budget Office (CBO), enabling negotiation could have saved taxpayers up to $450 billion over ten years. (Source: CBO Report, 2019)
Instead, the administration promoted a “free market” solution—backed by tax subsidies and market protections—that kept prices high. EpiPens, insulin, and cancer drugs remained unaffordable to millions, even as pharma companies posted record profits.
Crisis Capitalism in Action
The COVID-19 pandemic further cemented Big Pharma’s dominance. Billions in taxpayer dollars were funneled into vaccine development through Operation Warp Speed, a public-private partnership lauded for its speed—but not its transparency.
Despite public funding, companies like Pfizer and Moderna retained exclusive rights and pricing power over their vaccines. As The New York Times reported in 2021, these firms raised prices on booster doses while reaping tens of billions in profit, sparking global criticism for prioritizing shareholder value over equitable access. (Source: NYT, “Pfizer’s Pandemic Profits”, 2021)
Celebrating Stock Gains as Victories
Meanwhile, the administration framed pharmaceutical stock market growth as a victory for American science. But public health experts argued that these celebrations masked a darker truth: the privatization of public investment and the sidelining of affordable care.
“Stock market highs don’t vaccinate the uninsured,” said Dr. Leana Wen, a public health expert at George Washington University, in 2022. “They enrich executives while working families ration medicine.”
Executive Orders: Revolution or Redress?
Fast forward to today: the current administration has signed executive orders aimed at capping insulin prices, penalizing anti-competitive mergers, and allowing Medicare to negotiate prices—initiatives hailed by many progressives.
But critics point out that these measures are not revolutionary—they’re necessary course corrections.
“We’re not witnessing reform,” said policy analyst Rebecca Niles of the Center for Health Policy Integrity. “We’re watching cleanup.”
Conclusion:
While executive action today may represent progress, it is also a stark reminder of how policy choices from just a few years ago granted pharmaceutical giants near-total control over pricing, access, and innovation. The results? Record-breaking profits—and a healthcare system in urgent need of repair.