Uncle Sam's New Drug Game: Trump's Crusade for Affordable Meds - Europe, Brace Yourself!
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U.S. to Lower Pharmaceutical Costs amid Pressure on Europe (Paraphrased) - U.S. President Trump seeks affordable pharmaceuticals domestically - exerting influence on European drug prices.
Uncle Sam's boot is squarely planted on the pharmaceutical industry's neck as Prez Trump raises hell over exorbitant drug prices. Europe finds itself squarely in his crosshairs. "We're footing the bill for other countries' health 'bills'", Trump bellowed as he signed an executive order at the White House. Enough's enough, Americans have been getting screwed for far too long.
Whether Trump's tactics will amount to a hill of beans remains to be seen. There's likely to be plenty of political and legal resistance. The Republican has been trying to take down high prices since his first term, but came up short.
Trump calls Europe "more sly than China"
"I'm not launching the biggest broadsides at pharma," Trump snarled. Companies often buckle under the pressure. Instead, he lambasted European countries, claiming American patients were subsidizing "communist healthcare systems" like Germany's. He accused the European Union of behaving "more shamelessly than China" in price negotiations. Europe can kiss goodbye to sweetheart deals in the future: "The rest of the world has to shell out more, and America will pay a lot less," he boasted.
In his executive order, Trump dusted off the ol' "Most Favored Nation" principle that he lobbied for during his first term: The U.S. will no longer pay more for certain meds than the country with the cheapest worldwide price, regardless of market size or economic power. "This game is over," Trump barked, referring to countries he believes have been raking it in at America's expense.
Pharma industry braces for impact - what happens to patients?
Trump's announcement puts the pharmaceutical industry on the hot seat. "The U.S. is the biggest market for innovative meds," says Han Steutel, prez of the Association of Research-Based Pharmaceutical Companies (VFA). "Without the revenues in the U.S., research and dev, and new therapies for European patients would often not be possible. What's been decreed in the U.S. has consequences for the whole world."
An international reference to the cheapest price won't cover research costs, and market introductions could become problematic, Steutel warned. What's needed now is a strong, common EU market with a coordinated drug policy.
The consulting firm Simon-Kucher also expects far-reaching consequences for the global pharma industry and German companies. "A declining revenue situation threatens the funds for research, production, and jobs, including at German sites," the study cautions.
With a drop in sales in the U.S., companies will face increasing pressure to achieve higher prices in other industrial nations like Germany. Furthermore, pharma companies may delay or even deny market entry in Germany to avoid low price references and thus protect the price in the U.S., according to Simon-Kucher.
Trump sets agencies loose
For the execution of Trump's decree, several U.S. agencies are to be activated. The Department of Commerce plans to take action against foreign pricing policies deemed unfair from the U.S. perspective, such as state-set maximum prices that disadvantage U.S. companies. The Department of Health and Human Services will facilitate direct sales of medications to U.S. consumers at lower prices, where possible. The Food and Drug Administration will also examine whether imports from additional industrial countries can be allowed in the future. Export restrictions are also under discussion at the White House.
Within 30 days, the Department of Health and Human Services is to set specific goals for price reductions. Based on this, the government will negotiate with the pharma industry. If the industry doesn't bite and lower prices voluntarily, further measures are on the table.
The focus will be on medications with significant price differences between the U.S. market and abroad. Specific medications or product groups were not initially named. However, government statements indicate that there's no intention to limit this to certain medication groups.
A Lobby with Clout - Across Party Lines
Trump accused the pharma industry of having too much political influence. He described the lobby as "probably the most powerful in the world" and claimed that the opposition Democrats had protected the industry for years.
Indeed, the industry wields significant clout in Washington. Through targeted donations to both Democrats and Republicans, pharma companies make sure they have a say in legislation. Efforts to reform and lower medication prices often encounter bipartisan resistance, often citing potential impacts on research and innovation.**
The cost of medications is a thorn in America's side. Unlike many other industrial countries, there's no central state price regulation. Price-setting is mostly left to pharma companies, leading to costs that are often significantly higher than in Europe. In Germany, various forms of state control apply.
- Donald Trump
- USA
- Europe
- Pharma Industry
- Medication
- Pharma Company
- U.S. President
- Germany
- Republicans
- China
- Medication Price
- EU
- Pharma Industry
- America
- HHS
- The pharmaceutical industry, particularly in the EC countries, could face significant changes in their employment policies due to the executive order signed by President Trump, aiming to reduce medication prices.
- The pharmaceutical companies, especially those in the US and Germany, may need to reevaluate their health-and-wellness, finance, and business strategies in response to Trump's policy and legislation.
- The European Union, having been criticized by Trump for its negotiations on medication prices, may need to reassess its policy-and-legislation approach regarding medicare and healthcare systems.
- The politics surrounding medication prices in America and Europe could witness a shift, with greater attention being paid to the general-news and public opinion regarding affordable medications for all.
