How Trump could Change Biotech and Health Sector

（the article has been updated to make the text concise and cohesive)

As the JP Morgan Global Health Conference approaches, one of the hottest topics on the minds of investors, executives, and industry participants is the potential impact of incoming U.S. President Donald Trump on the health and biopharma sectors. This topic is expected to dominate key presentations, keynote speeches, and panel discussions.

One of the most significant changes could come in the form of a potential ban on TV commercials for prescription pharmaceuticals. RFK Jr., Trump's nominee for Secretary of Health and Human Services, has expressed his intention to eliminate the nearly nonstop airing of pharmaceutical ads on U.S. networks. Notably, the U.S. and New Zealand are the only industrialized countries where such advertising practices are still legal.

This shift began in 1997 when the FDA relaxed regulations to allow drug advertisements on TV. Since then, Big Pharma has increasingly relied on direct-to-consumer advertising, which has sparked concerns about its influence on both public perception and the media. Project 2025, a Republican manifesto, argues that these ads have created undue influence in the newsroom, distorting independent reporting on public health issues.

The spending on TV ads by pharmaceutical companies has ballooned, with top advertisers like Novo Nordisk and AbbVie now spending between $300 million and $400 million annually on TV campaigns.

“The FDA or Congress should regulate where and how pharmaceutical companies use paid advertising more strictly, especially on media outlets,” states the report.

Efforts to ban drug ads on TV have been attempted before but were halted due to First Amendment concerns. However, the push to change the current practice could have significant effects on the industry.

Pharmaceutical companies defend these TV ads, arguing that they help raise awareness of medical conditions, inform the public about treatment options, and provide product information. Opponents counter that these goals could be achieved through alternative means, such as funding patient advocacy groups or supporting physician education.

Separately, Trump has nominated Dr. Marty Makary to lead the FDA as Commissioner. Makary, who has criticized the FDA's bureaucratic response to COVID-19 and the National Institutes of Health's slow action on funding clinical studies, could bring a more aggressive approach to the agency.

Banning TV drug commercials may not be an easy battle, and if RFK Jr. is confirmed, he will face significant challenges in his quest to “make America Healthy Again.” The U.S. healthcare system remains one of the most expensive in the world, and many are dissatisfied with its current state. The November killing of United Healthcare’s CEO underscores the growing public frustration with medical insurance companies. Change could be on the horizon, so buckle up.