Donald Trump's crackdown at pharma: 'Americans need lower drug prices'; sets 29 September deadline or face action

Time of India

2 days ago

US President
Donald Trump
issued a sharp warning to pharmaceutical giants, calling on them to slash prescription drug prices in the United States or face the consequences.
In letters addressed to 17 major drug companies, Trump urged them to cooperate with his administration to implement sweeping reforms aimed at lowering costs for American patients, who currently pay some of the highest drug prices in the developed world.
These firms are Eli Lilly and Company, Sanofi, Regeneron Pharma, Merek, GSK, Johnson & Johnson, Genentech, Amgen, AstraZeneca, Novo Nordisk, Pfizer, EMD Serono, Gilead Sciences, Novartis, Bristol Myers Squibb, Boehringer Ingelheim, AbbVie.
'If you refuse to step up we will deploy every tool in our arsenal to protect American families from continued abusive drug pricing practices,' Trump wrote in the letters, which were published on his platform, Truth Social.
The push follows an executive order Trump signed on May 12, 2025, titled Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients. The order is designed to end what Trump called 'global freeloading' by foreign governments benefiting from lower prices on American-developed medicines.
According to the White House, drug prices in the US are on average up to three times higher than in other developed countries for the same medications.
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Trump has blamed this on 'an unacceptable burden on hardworking American families' and vowed to put a stop to it.
In the letters, Trump said that most proposals his administration had received from the pharmaceutical industry offered 'more of the same: shifting blame and requesting policy changes that would result in billions of dollars in handouts to industry.'
Instead, he laid out a clear list of demands to be fulfilled within 60 days:
Extend most-favored-nation (MFN) pricing to Medicaid: Offer the full portfolio of existing drugs at MFN rates to all Medicaid patients.
Guarantee MFN pricing for newly launched drugs: Ensure MFN pricing applies to Medicare, Medicaid and commercial payers for all new drugs at launch and beyond.
Return increased revenues from abroad to American patients and taxpayers: Trump said domestic MFN pricing should push drug makers to negotiate tougher deals with foreign buyers, and the extra revenue must be used to lower domestic costs.
Enable direct purchasing at MFN pricing: Adopt direct-to-consumer and direct-to-business distribution for widely used prescription drugs, allowing Americans access to the same low prices typically reserved for third-party payers.
'My team, including secretary Kennedy and Administrator Oz, stand ready to implement these terms,' Trump said.
'I expect you to further engage with them immediately, in good faith, to deliver relief for American families.'
The US President highlighted achieving global price parity would be the most effective outcome for all stakeholders, but he warned that failure to comply would prompt government action.
'Americans are demanding lower drug prices and they need them today,' he added. 'Other nations have been freeloading on US innovation for far too long; it is time they pay their fair share.'
He concluded the letter by asking for binding commitments by September 29, and promised support for implementation queries.
The move marks one of Trump's most aggressive attempts to tackle the long-standing issue of inflated prescription drug prices in the United States.
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