Trump Orders Big Pharma to Lower US Drug Prices Within 60 Days
In a bold move to tackle the exorbitant cost of prescription drugs in the United States, President Donald Trump has demanded that 17 leading pharmaceutical companies slash their US prices within 60 days.
This initiative follows Trump’s executive order in May, reviving the “most favored nation” policy, which ties US drug prices to lower costs abroad.
The pharmaceutical giants, including Eli Lilly, Pfizer, Merck, and Novo Nordisk, have been instructed to reduce their prices for existing medicines to the lowest prices seen in other developed countries for Medicaid patients. Additionally, Trump wants contracts ensuring Medicare, Medicaid, and commercial payers get these “most favored nation” rates on all new drugs from launch onward
Trump’s letters to the pharmaceutical companies, posted on his Truth Social account, emphasize the need for immediate action to address the staggering disparity in drug prices between the US and other countries.
American families are burdened by prices that are often two to three times higher than those in other developed nations. The president warned that failure to comply with the demands would prompt the administration to “deploy every tool in our arsenal to protect American families from continued abusive drug pricing practices”.
The pharmaceutical industry has pushed back, arguing that importing foreign price controls would undermine American leadership in innovation and potentially lead to fewer new treatments. However, Trump’s administration remains resolute in its efforts to make prescription drugs more affordable for Americans
The stock market has reacted swiftly, with pharmaceutical shares slumping in response to Trump’s demands. The S&P 500 Pharmaceuticals Index dropped 2.7% following the announcement. As the deadline for compliance approaches, the pharmaceutical industry and the Trump administration are set for a showdown over the future of drug pricing in the US. #Trump Orders Big Pharma to Lower US Drug Prices Within 60 Days#
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