International Policies Set by Trump Aiming to Equalize Global Pharmaceutical Market
In a significant move, President Donald Trump has sent binding letters to 17 major pharmaceutical companies, demanding a commitment to lower U.S. drug prices to match the "most-favored-nation" (MFN) prices—the lowest prices offered in other developed countries. The policy, reinstated by Trump’s 2025 executive order, aims to reduce U.S. drug prices by potentially up to 59%.
The companies receiving these letters include Pfizer, Eli Lilly, Merck, Gilead, and Amgen, among others. The President outlined four areas for price reduction: extending MFN pricing to Medicaid, guaranteeing most favored nation pricing to newly launched medications, returning increased revenues from abroad, and providing direct-to-consumer or direct-to-business distributions to eliminate the middleman for cost savings.
The White House spokesperson, Kush Desai, stated that Americans fund 75% of pharmaceutical companies' profits and are charged several times more for the same drugs as people in other wealthy countries. He also mentioned that President Trump is taking historic action to ensure drug companies make wealthy countries pay their fair share instead of continuing to overcharge American citizens.
In a positive development, AstraZeneca CEO Pascal Soriot announced a $50 billion investment in the U.S. economy over the next five years. Soriot also agreed with Trump that the U.S. has been covering the cost of R&D in the pharmaceutical industry for many years. However, Soriot also mentioned that American patients benefit first before anyone else in the world, and the industry creates a lot of good jobs in the U.S.
The administration hopes this will be a cooperative effort with pharmaceutical companies. HHS Sec Robert F Kennedy Jr stated that American patients pay more so others can pay less, and this practice stops now. The President set a Sept. 29 deadline for repricing or his team stands ready to assist.
The Trump administration will monitor the progress of rebalancing medication prices using authority from the U.S. Trade Representative's Office and the Commerce Department. Progress so far includes formal communication to manufacturers, such as AbbVie, Amgen, Pfizer, and others, with a clear warning that the government will “deploy every tool in our arsenal” if companies refuse to comply. However, industry response has been cautious, given the complexity of implementation and financial implications, as evidenced by a sharp drop in pharmaceutical stock prices following the announcement.
Additional reforms under consideration by the administration and Congress include changes to pricing programs like the 340B Drug Pricing Program and increased regulatory scrutiny of intermediaries in the pharmaceutical supply chain, but these may have mixed effects on patient costs.
A Pill bottles at a Walgreens were mentioned in the article (Getty Images), symbolising the high cost of medication for many American patients. The administration's aggressive push for lower drug prices is a significant step towards making healthcare more affordable for millions of Americans.
- To guarantee potential savings for American consumers, President Trump has issued letters to pharmaceutical companies like Pfizer, Eli Lilly, and AstraZeneca, requesting a commitment to match the "most-favored-nation" (MFN) prices and lower U.S. drug prices by up to 59%.
- In an effort to address unaffordable healthcare costs, the administration is considering additional reforms, such as changes to pricing programs like the 340B Drug Pricing Program and increased regulatory scrutiny of intermediaries in the pharmaceutical supply chain.
- The Trump administration's push for lower drug prices, as symbolized by a pill bottle at a Walgreens, could make healthcare more affordable for millions of Americans, potentially leading to overall improvements in health-and-wellness.
- AstraZeneca has pledged a $50 billion investment in the U.S. economy over the next five years, a move that could boost the country's finance and business sectors, providing new opportunities for wealth creation and increased revenue generation.
