Trump Issues "Price-Cut Order" to 17 Major Pharmaceutical Companies, Sets 60-Day Deadline for Response | WPN World People News

On the 31st, U.S. President Donald Trump sent letters to the CEOs of 17 pharmaceutical companies, including Pfizer, Sanofi, and Johnson & Johnson, demanding they lower the prices of prescription drugs in the U.S. Trump stipulated that drug prices should not exceed those in other advanced countries and set a 60-day deadline for compliance. Following the announcement, pharmaceutical company stock prices dropped sharply.

The 17 major pharmaceutical companies include AbbVie (ABBV-US), AstraZeneca (AZN-US), Amgen (AMGN-US), Boehringer Ingelheim, Eli Lilly (LLY-US), Bristol-Myers Squibb (BMY-US), Genentech, GlaxoSmithKline (GSK-US), Gilead (GILD-US), Johnson & Johnson (JNJ-US), Novartis (NVS-US), Merck (MRK-US), Novo Nordisk (NVO-US), Regeneron (REGN-US), Pfizer (PFE-US), and Sanofi (SNY-US).

According to statistics from the RAND Corporation, U.S. prescription drug prices are two to three times higher than in other developed countries, with some medications priced up to 10 times higher. As a result, Trump signed an executive order in May of this year requiring drugmakers to reduce prices to match the lowest prices available overseas. If companies refuse to comply, U.S. authorities may impose regulations to enforce price cuts or consider importing cheaper drugs from abroad.

Trump also urged pharmaceutical companies to offer "most-favored-nation" pricing for low-income patients under the Medicaid program and to ensure that newly developed drugs fall under the same pricing policy. Additionally, if pharmaceutical companies attempt to offset lower U.S. prices by raising prices in other countries, any resulting excess overseas profits must be returned to U.S. patients and taxpayers. The government intends to regulate this through negotiated agreements.

Industry representatives, however, argue that differences in healthcare systems and market conditions across countries influence final drug pricing, making uniform pricing unrealistic. They also warn that lowering drug prices could reduce funding for research and development, potentially doing more harm than good for the U.S.