Trump cut drug prices. 9 stocks surged anyway.

[00:00:00]On the surface, this sounds like a cost-reduction story. More approved drugs means more competition. More competition means lower prices. [music] That's the political narrative. But the structural reality is the opposite. When the FDA accelerates approvals, drug companies get more products to market faster. [music] Each approval is a new way to make money.

[00:00:19]Even if margins shrink on each [music] drug, the total number of drugs on the market grows. The pie gets bigger.

[00:00:26]Think of it this way. A bakery that gets one bread approved per year has limited competition, but also limited growth. If suddenly that bakery can get five breads approved per year, each loaf faces more competition.

[00:00:38]But the bakery's total sales just went up five times.

[00:00:42]That's what's happening to [music] pharma right now. The market understands this. Biotech stock prices are rising because the market sees more drugs [music] getting approved, not fewer profits.