Trump Demands Drug Price Cuts in Letters to 17 Pharma Giants Summary
President Donald Trump addessses the nation after U.S. bombed Iran's nuclear facilities X
Trump recently signed an executive order requiring drugmakers to offer "most-favored-nation" pricing. This means companies must sell medications to U.S. patients at the lowest price they offer elsewhere. If drug companies do not comply, Trump warned the government could import cheaper alternatives or take other steps.
Companies that received the letters include Pfizer, Eli Lilly, Johnson & Johnson, Merck, Sanofi, and AstraZeneca. Trump had previously criticized earlier proposals from the industry, saying they prioritized profits over patient care. He also demanded that drugmakers return any excess profits made by raising prices overseas to compensate American taxpayers.
Shares of major pharmaceutical firms fell after the announcement. Pfizer, Eli Lilly, and Gilead each dropped by around 2%, while a broader index of drug stocks declined 3%.
Trump also suggested a system where companies can sell drugs directly to patients, bypassing middlemen, but only if they agree to international pricing rules. The president gave drugmakers a deadline of September 29 to respond with binding commitments.
Health experts are skeptical that companies will meet Trump's demands. Some analysts believe the proposals are unlikely to result in immediate price changes, describing them as more political pressure than enforceable policy.
Still, several companies, including Pfizer and Novartis, said they are open to working with the administration. Pfizer confirmed its ongoing talks with Trump officials to improve access and affordability for U.S. patients.
U.S. drug prices remain among the highest in the world, with patients often paying nearly three times more than those in other developed countries. Drugmakers argue that sharp price cuts could harm innovation, but Trump insists bold action is needed to protect Americans from high costs.
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