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Yahoo
27-05-2025
- Business
- Yahoo
What's next for Trump's ‘most favored nation' policy?
This story was originally published on PharmaVoice. To receive daily news and insights, subscribe to our free daily PharmaVoice newsletter. Following through on President Donald Trump's 'most favored nation' policy, the HHS is about to drop a drug pricing hammer on the pharma industry. But that doesn't mean drugmakers will comply. The policy, issued by an executive order earlier this month in an attempt to bring U.S. drug prices in line with those paid in other countries, asks drugmakers to voluntarily lower their own price tags first. If they don't, HHS is then directed to 'impose' the policy, which is expected to be met with legal challenges, as it was when Trump proposed a similar plan during his first term. Meanwhile, pharma's largest lobbying group is aiming to shift the blame for drug prices to pharmacy benefit managers and the 340B hospital drug pricing program. PhRMA launched a new ad campaign last week that called out 'markups' from the hospital program and 'middlemen fees' from PBMs as reasons for higher drug prices in the U.S. compared to the rest of the world. While HHS takes its first steps toward implementation, Congress is also looking into new reforms to lower drug prices. As HHS determined target prices that 'pharmaceutical manufacturers are expected to meet,' the agency disclosed that they're equal to the lowest price paid by an OECD country with a GDP capita that's at least 60% of the U.S. measure. And the president and HHS Secretary Robert F. Kennedy Jr. plan to highlight price commitments from drugmakers in the coming weeks, the agency said. 'For too long, Americans have been forced to pay exorbitant prices for the same drugs that are sold overseas for far less,' Kennedy said in a statement. 'That ends today. We expect pharmaceutical manufacturers to fulfill their commitment to lower prices for American patients, or we will take action to ensure they do.' In his executive order and accompanying fact sheet, Trump called out European countries for 'free-riding' on American pharma innovation by charging lower prices than the U.S. for the same medicines. Trump hopes the plan will convince other countries to raise drug prices to make up for lost pharma revenues. Kennedy last week called the plan a 'revolution in healthcare affordability', drawing on price comparisons for GLP-1 drugs in the U.S. and the U.K. — a patient may pay $88 for the same weekly shot in London for which an American shells out more than $1,000, he said. HHS announced the new targets just over a week after Trump directed the agency to implement the lower prices within 30 days. Despite HHS expecting compliance from drugmakers, many critics and analysts have noted the policy lacks teeth for enforcement and therefore may have a limited effect in lowering drug prices. While the policy may impact list prices, many patients would not see a change in drug costs because most pay a different price through their insurance. 'We do not [expect pharma companies to voluntarily comply], given that this is coming out of an executive order, and we have precedent from the first administration of this president where this was attempted; we expect a strong legal response, just like last time,' Maximilian Vargas, vice president, U.S. access strategy at Certara, said in an email. 'Federal authority to regulate drug pricing in the commercial books of business compared to government is limited.' HHS could come up with an enforcement mechanism down the line through a proposed rule, but firmer drug pricing reforms are already in the works. Two bills have been introduced in Congress that target drug prices, including one that codifies core provisions of Trump's most favored nation executive order into law. The Global Fairness in Drug Pricing Act, introduced the same day as HHS' price target announcement, would similarly direct HHS to propose a rule to implement the MFN strategy. It would also facilitate direct-to-consumer sales of drugs at the new benchmark prices and authorize the FDA to import prescription drugs from countries with lower prices. The FDA already allows states to apply for waivers to import drugs from other countries, and last week said it would enhance these options for imported drugs from Canada in compliance with the executive order. So far, only Florida has been granted a waiver to import drugs from Canada at a lower price. Canadian officials noted last year that the nation intended to 'safeguard' its drug supply, underscoring importation plans may meet roadblocks from other countries. Sen. Bernie Sanders, I-Vt., also introduced a bill targeting pharma companies that charge prices that are higher than the median in other countries. The legislation, sent to the Senate HELP committee, would end pharma monopolies in the U.S., according to Sanders. Recommended Reading Trump's 'most favored nation' policy is back. Here's why it failed the first time.
Politico
20-05-2025
- Business
- Politico
A big pharma move
With Daniel Lippman FIRST IN PI — CURRIE HEADS TO BRISTOL MYERS SQUIBB: Bristol Myers Squibb has picked up a veteran drug lobbyist to lead its Washington office at a key moment for the pharmaceutical industry. Rodger Currie, who served as the top lobbyist at PhRMA before moving over to the cancer diagnostic startup GRAIL in 2019, will join Bristol Myers Squibb next month as senior vice president of U.S. policy and government affairs. — Currie worked at PhRMA for nearly a decade, including when Congress created the Medicare Part D program for prescription drugs in the early 2000s. He returned to the drug lobby early in the first Trump administration. Currie also led government affairs at the American Psychiatric Association and drugmaker Amgen. — He joins Bristol Myers Squibb at a pivotal time for the drug industry in Washington. The Inflation Reduction Act's drug pricing provisions dealt the pharmaceutical industry's lobbying operation a major blow, and BMS has had one of its drugs selected for Medicare price negotiations in both rounds of talks so far. CEO Chris Boerner was among the pharma executives hauled to the Hill last year for a grilling by Sen. Bernie Sanders (I-Vt.) over drug prices. — Drugmakers haven't fared much better under GOP President Donald Trump, who signed an executive order last week aimed at pegging the U.S. cost of prescription drugs to prices paid in other countries. The president is prepping tariffs on the drug industry, in addition to continuing with drug price negotiations. Trump also installed one of the industry's most vocal detractors, Robert F. Kennedy Jr., atop the nation's health agencies, where Kennedy has continued to shred pharmaceutical companies. — Currie is well known in pharmaceutical lobbying circles. A 2020 Wall Street Journal story described him as 'a tall, domineering figure who volunteers for the Washington, D.C., police and sometimes leads Mr. Trump's motorcade through downtown Washington on his Harley-Davidson motorcycle. … In lobbying, Mr. Currie believed in strength over negotiation.' — His hiring by BMS could signal a shift in approach by the company, especially when taken with an op-ed from Boerner earlier this month in which the chief executive took aim at the administration's funding cuts, tariff and drug pricing policies. 'Just as government policies have bolstered U.S. leadership' in the drug sector, he wrote, 'they can also destroy it.' Happy Tuesday and welcome to PI. Send lobbying tips. You can add me on Signal, email me at coprysko@ and be sure to follow me on X: @caitlinoprysko. SPOTTED: Apple CEO Tim Cook going through security at the White House on Tuesday, a PI tipster told Daniel. Cook met with Trump on his visit, according to a person familiar with the matter. FIRST IN PI — FOREIGN STAKEHOLDERS TRIP UP ILFA LOBBYISTS AGAIN: A lobbying firm representing the International Legal Finance Association again is correcting a failure to disclose that the association has foreign entities that have a direct interest in its lobbying activities, Daniel reports. — When S-3 Group filed its LD-1 lobbying registration form in January for ILFA, it identified six foreign entities with that interest. However, when it recently filed its LD-2 disclosure form for the first quarter, it checked the box that said there were no foreign stakeholders. — The lack of disclosure comes as there are increasing concerns that foreign litigation financing could be used to undermine American interests. Several lawmakers have introduced legislation aimed at forcing more transparency around the practice — something the U.S. Chamber of Commerce has also lobbied hard for. — The head of DOJ's FARA Unit reaffirmed last year that foreign litigation funding is an area of interest in terms of the unit's enforcement priorities, though it is unclear if that will remain the case under Attorney General Pam Bondi. — At the start of this year, ILFA switched lobbying firms and is now represented by S-3 Group. The two people lobbying on its behalf at S-3 Group, Kristi Remington and Craig Kalkut, also previously represented them at West Front Strategies, which is no longer retained by ILFA. When West Front filed quarterly disclosures for the group, it disclosed the interest of foreign entities in the work. — This is the second time in two years that a firm representing ILFA has failed to disclose that the association has foreign stakeholders that have a direct interest in its lobbying activities. Jeff Miller's Miller Strategies, which no longer represents ILFA, had to amend its report for ILFA last year for the same reason. — John Scofield, a partner at S-3 Group, told PI that the lack of disclosure was a 'clerical mistake that will be corrected shortly.' As of Tuesday afternoon, PI had not spotted the amendment online. ILFA didn't respond to requests for comment. A WALL STREET FIRM PIVOTS TO TAX, ENERGY: Rich Feuer Anderson has registered to lobby for half a dozen new clients, including Tesla, the Auto Alliance for Innovation, the Clean Energy Buyers Association and oil refinery Suncor Energy. It's part of a new push from the longtime financial services-focused lobbying shop to build out its portfolio of energy and tax work. — Steering the firm's budding energy practice is Matt Kellogg, a former Independent Petroleum Association of America general counsel who's also worked for Kevin McCarthy, Treasury, MoneyLion and HSBC. Justin Sok, a SIFMA and Treasury alum who previously served as legislative director for now-House Ways and Means Chair Jason Smith (R-Mo.), is heading up the firm's tax work — though the two policy areas have been linked over the past few years. — The Biden administration's unsuccessful push to force companies to disclose their climate-related risks and emissions forced the issue onto Wall Street's radar. But 'the IRA was something that really — at least in the energy and tax space — kind of exploded interest' in the intersection of clean energy and tax policy, Sok told PI of the Inflation Reduction Act. The firm is working to persuade Republicans to spare the law's tax incentives in their reconciliation package. ANNALS OF FUNDRAISING: Elon Musk plans to drastically cut his political spending after unleashing a gusher of cash to help elect Trump and down-ballot Republicans last year It's 'a likely blow' to the GOP ahead of next year's midterms, Bloomberg's Gregory Korte and Bill Allison write. — 'I'm going to do a lot less in the future,' the Tesla CEO and DOGE chief told the Qatar Economic Forum today, adding in a response to a question about the shift that 'I think I've done enough.' — 'The world's richest man …contributed about a quarter of a billion dollars to various political groups in the 2024 cycle — more than any other donor to US elections. Most of that money supported Trump, who rewarded Musk by appointing him to lead an ambitious effort to reduce the size and scope of the federal government' that has given the tech executive unprecedented access to the president and the inner workings of the federal bureaucracy. RELATED READ: Trump's 'Gulf Deal-Making Spree Also Benefited Elon Musk and His Family,' by The New York Times' Mara Hvistendahl, Rebecca R. Ruiz and Ryan Mac. CRAIG JOINING FOLEY HOAG: Greg Craig has found a new home downtown. The former Obama and Clinton White House counsel has joined Foley Hoag as a senior counsel, the firm announced today. Craig was part of former President Bill Clinton's impeachment defense team and was the first top White House lawyer for former President Barack Obama. — After leaving the White House, Craig joined Skadden, Arps, Slate, Meagher & Flom, where his work related to a 2012 report on former Ukrainian Prime Minister Yulia Tymoshenko landed him in the crosshairs of former special counsel Robert Mueller and caused a bitter split between Craig and the firm. — Craig became the only Democratic official to face charges stemming from Mueller's probe of Russian election meddling, but in 2019, a jury acquitted Craig on a felony count of intentionally misleading DOJ about his Ukraine lobbying work. FLYING IN: Member executives with the Autonomous Vehicle Industry Association are in town this week. AV leaders have met with Treasury Secretary Sean Duffy and are slated to meet with other DOT staff as well as a mix of bipartisan members and staff from the Senate Commerce House Energy and Commerce and House Transportation and Infrastructure committees to try and keep up momentum for the development of a federal AV policy framework. — The National Grocers Association will be on the Hill today and tomorrow for a well-timed fly-in to lobby for various tax provisions and push back against cuts to SNAP funding in the reconciliation bill. Independent grocers will also hear about antitrust enforcement from FTC Chair Andrew Ferguson and meet with lawmakers ahead of a possible amendment vote in the Senate on swipe fees legislation. — The Natural Resources Council of Maine was on the Hill today to call on members of the Maine delegation to preserve the IRA's clean energy tax incentives and protect funding for coastal climate change resilience and EPA clean air and water funding. — The National Association of Insurance and Financial Advisors hit the Hill today for more than 300 scheduled meetings with congressional staff and lawmakers, including Sens. John Cornyn (R-Texas) and Jack Reed (D-R.I.) and Reps. Judy Chu (D-Calif.), French Hill (R-Ark.), Young Kim (R-Calif.), Seth Magaziner (D-R.I.) and Jason Smith (R-Mo.). DOGE DATA TRACKER — POLITICO just launched a new Pro tool to track the latest actions by Trump's Department of Government Efficiency. A look at April and May alone reveals over 5,000 new contract, grant or lease cancellations. Pros can search new cuts, additions, and modifications by government agency, contractor, or congressional district. For access to exclusive reporting and tools like this, subscribe to POLITICO Pro or request a demo of our news service, directories and other products. Jobs report — David Bortnick has joined SMI as vice president. He most recently served as a professional staff member on the House Appropriations Committee and is an OMB and USTR alum. — Citizens for Responsible Energy Solutions has added Whitney Folluo as director of media relations, Alyssa Jones as a communications manager and Shannon O'Hare as a government relations and policy manager. Folluo was most recently at the U.S. Institute of Peace, Jones was most recently with the Western Caucus Foundation and O'Hare was most recently at the Wilson Center. — The Transport Project has added Kirk Ross as its director of membership. He was previously member engagement manager for the western region for the National League of Cities. — Paul Wolfson is joining Democracy Forward as senior legal adviser. He most recently was deputy associate AG at the Justice Department and is an alum of WilmerHale, where he was a top Supreme Court advocate. — Jacqueline Thomas is now director of external communications at USDA. She most recently was a director at Rational 360 and is a Trump White House alum. — Allen Klump is now a governmental affairs adviser at Maynard Nexsen. He previously was vice president for governmental affairs for the South Carolina Manufacturing Alliance and is a Jeff Duncan alum. — Brian Szmytke is joining Apollo Communications as vice president for political strategy and operations. He previously was director of political marketing at i360. — Manisha Sunil is joining New Heights Communications as a director. She previously was director of communications at Groundwork Collaborative. — James Swann is now communications director at America's Essential Hospitals. He was previously director of communications and public affairs at AHIP. New Joint Fundraisers Invest in America 2026 (Reps. Richard Hudson, Nick Begich, Brian Fitzpatrick, Rudy Yakym, Max Miller, NRCC) Jane Fonda & Mike Levin Victory Fund (Rep. Mike Levin, Jane Fonda Climate PAC) New PACs ENERGY DOMINANCE PAC (Super PAC) Take Me Home WV Action (Super PAC) New Lobbying REGISTRATIONS Avoq, LLC: Solana Policy Institute Capcventures LLC: Lynas Rare Earths Ltd Capitol Counsel LLC: Cook Inlet Region, Inc. Checkmate Government Relations: Eversheds Sutherland LLP On Behalf Of Maurel & Prom Checkmate Government Relations: Monte Valle Energy LLC Checkmate Government Relations: Morgan Hughes Energy Checkmate Government Relations: Patino & Associates, P.A. Checkmate Government Relations: Ril USa, Inc. Checkmate Government Relations: Stoll Keenon Odgen Govt. Rels. LLC (On Behalf Of Ky Medical Servs Found.) Clearwater Group, LLC: Conduent Incorporated And Its Affiliates Clearwater Group, LLC: Port Pascagoula Corcoran & Associates, Inc. Dba Corcoran Partners: Kroll, LLC Dga Group Government Relations LLC (Formerly Dentons Global Advisors Government: Viiv Healthcare Elevate Government Affairs, LLC: Marathon Petroleum Corporation Elevate Government Affairs, LLC: Ncta-The Internet And Television Association K&L Gates, LLP: 8 Star Alaska, LLC Lot Sixteen LLC: North Star Manganese, Inc. Michael R. Pawlowski: Capitol Counsel On Behalf Of Cook Inlet Region, Inc. Miller Strategies, LLC: American Bankers Association Miller Strategies, LLC: Goel Investments, LLC Miller Strategies, LLC: Grey Rock Net Zero Opportunities Fund I, Lp Miller Strategies, LLC: Invenergy LLC Miller Strategies, LLC: Merchants For America, Inc. Oceantic Network: Oceantic Network Sandler, Travis & Rosenberg, P.A.: Uniform Advantage Squire Patton Boggs: Jump Crypto Holdings LLC The Abecedarian Group, LLC: Ujima, The National Center On Violence Against Women In The Black Community Thorn Run Partners: Isle Of Palms, South Carolina Twenty-First Century Group, Inc.: Phitec, LLC Yazaki North America: Yazaki North America New Lobbying Terminations Farmvetdx: Farmvetdx Kate Moss: Discover Financial Services Keystone Strategic Consulting, LLC: Pennsylvania Association For The Blind The Law Office Of Michael R. Klipper: American Society Of Media Photographers The Mondello Group LLC: World Anti-Doping Association (Wada) Venable LLP: Air Products And Chemicals Inc.
Yahoo
20-05-2025
- Business
- Yahoo
HHS sets 'most favoured nation' pricing targets for drug makers
The US Department of Health and Human Services (HHS) said it is 'taking immediate steps' to implement a recent Executive Order (EO) by President Donald Trump that is set to overhaul the pricing framework of prescription medicines in the country. Based on a 'most favoured nation' pricing model, Trump's policy requires drugmakers to match the lowest prices they offer in comparable countries. If companies do not adhere to this, they could face regulatory action. The target price "is the lowest price in an OECD country with a gross domestic product (GDP) per capita of at least 60% of the US GDP per capita," HHS said in a 20 May statement. An OECD country is a member of the Organisation for Economic Co-operation and Development (OECD), an international organisation of 38 countries that align on democracy and market economy. The economies of the current 38 OECD member countries accounted for approximately 46% of the world's GDP in 2021. The health authority said pharmaceutical manufacturers are expected to meet these identified specific targets that satisfy the requirements of the EO. 'For too long, Americans have been forced to pay exorbitant prices for the same drugs that are sold overseas for far less,' said HHS secretary Robert F Kennedy Jr. 'That ends today. We expect pharmaceutical manufacturers to fulfil their commitment to lower prices for American patients, or we will take action to ensure they do.' HHS stated that each manufacturer will need to commit to aligning US pricing for all brand products markets where there are no generics or biosimilars. Generics and biosimilars are significantly cheaper than branded medications, which usually drives down the cost across the board for that drug market. When pharmaceutical companies do not face competition from these copycat drugs, drug prices are generally high. US patients pay the highest prices for prescription drugs, often nearly three times more than those in other developed nations. According to a Reuters article, pharma companies launched new US drugs at prices 35% higher in 2023 compared to those launched in 2022. Drug price reforms have been a key tenet of the current Trump administration, with the president previously saying that the country will 'no longer tolerate profiteering and price-gauging from big pharma'. As of 12 May, when the EO was signed, drug manufacturers have 30 days to meet the targets. There has been inevitable pushback to the pricing reforms. The Pharmaceutical Research and Manufacturers of America (PhRMA), the sector's leading trade group, warned that the move would have serious consequences for innovation and access. On 12 May, PhRMA CEO Stephen Ubl said: "To lower costs for Americans, we need to address the real reasons US prices are higher. Foreign countries not paying their fair share, and middlemen driving up prices for US patients. "Importing foreign prices from socialist countries would be a bad deal for American patients and workers. It would mean less treatments and cures and would jeopardise the hundreds of billions our member companies are planning to invest in America – threatening jobs, hurting our economy and making us more reliant on China for innovative medicines." "HHS sets 'most favoured nation' pricing targets for drug makers" was originally created and published by Pharmaceutical Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Trump's ‘most favored nation' policy is back. Here's why it failed the first time.
This story was originally published on PharmaVoice. To receive daily news and insights, subscribe to our free daily PharmaVoice newsletter. President Donald Trump is bringing back a controversial policy idea from his first term targeting drug costs. The 'most favored nation' policy would bring U.S. drug prices in line with the nation that pays the lowest price 'anywhere in the world,' Trump said on social media this week. Implementing such a plan would reduce drug prices 30% to 80% 'almost immediately,' Trump claimed. However, there's still a ways to go before the policy would take effect — and looking back at why the approach failed in Trump's first term provides insight into the challenges ahead. Through an executive order, Trump ordered HHS and its agencies to create a proposed rule to achieve the policy's ends — a move met with immediate criticism from some members of Congress as well as the pharma industry. The industry association PhRMA used the executive order as an opportunity to slam pharmacy benefit managers — their usual target — as the culprits for high drug prices in the U.S. 'The U.S. is the only country in the world that lets PBMs, insurers and hospitals take 50% of every dollar spent on medicines,' PhRMA president and CEO Stephen Ubl said in a statement. 'The amount going to middlemen often exceeds the price in Europe.' PhRMA also called the plan 'a bad deal' that would threaten jobs, hurt the economy and place more reliance on China for America's medicines. BIO similarly criticized the policy, calling it 'deeply flawed' and arguing it would 'devastate' the biotech industry. Trump's executive order claimed the U.S. funds three-quarters of global pharma profits despite holding just 5% of the world's population. The president also claimed that drug manufacturers agree to the demands of other countries to offer lower prices, with Americans effectively subsidizing innovative medicines developed in America — 'freeloading,' he called it. As such, HHS Secretary Robert F. Kennedy Jr. is ordered to enable direct-to-consumer sales of drugs at the 'most-favored-nation price.' HHS would create a mechanism to facilitate the sales directly from the manufacturer and bypass the middleman, according to a White House fact sheet. If manufacturers don't comply and offer the new prices, HHS would impose the most-favored-nation pricing outright. Trump noted he would target pharma companies that fail to comply. '[S]hould drug manufacturers fail to offer American consumers the most-favored-nation lowest price, my administration will take additional aggressive action,' the order stated. HHS is directed to give the new prices to drugmakers within 30 days of the order. With such a short turnaround to get the policy off the ground, many questions remain as to how it will be executed. Wall Street analysts have wondered about HHS' authority to enact such regulations if pharma companies don't voluntarily comply, BioPharma Dive reported. Trump also said Monday that he believes Europe will feel pressure to raise drug prices as a result of the policy if drugmakers face lower revenues as a result, NPR reported. How the policy will impact Medicare's drug price negotiation program as established in the Inflation Reduction Act is still unclear. The government has already negotiated the first set of 10 drugs selected for the program, with implementation slated for next year. The revival of the most favored nation policy comes after Trump tried a similar tactic during his first term, but the new plan doesn't follow the same lines. During his first term, the policy was limited to certain Medicare Part B drugs, but the new order is vague regarding which plans will be affected. The policy was similarly challenged by pharma groups, including BIO, which won an injunction to stop HHS from implementing it in 2020. A handful of other court orders also stopped the rule from moving forward. When President Joe Biden came into office shortly thereafter, the new administration pulled back the policy. Trump originally proposed the idea in 2018, but he only attempted to push it through in the last few months of his first term unsuccessfully. Trump has also run into a lack of Republican support, who failed to add a most favored nation provision in their upcoming economic bill, several news outlets have reported. However, a bipartisan bill introduced in the Senate earlier this month would prohibit pharma companies from selling drugs in the U.S. at prices higher than the international average. With Trump's aims more wide-reaching this time, the policy is 'almost certainly' expected to be challenged in court, where it may once again get shot down. Recommended Reading FDA's future in MAHA hands: How leadership is changing the agency's trajectory
Yahoo
13-05-2025
- Business
- Yahoo
Pharma faces 30-day deadline under Trump's pricing order
US President Donald Trump has signed an executive order aimed at reducing prescription drug prices by linking them to what pharmaceutical companies charge in other developed nations. The policy, based on a 'most favoured nation' pricing model, would require drugmakers to match the lowest prices they offer in comparable countries or face regulatory action. The order gives drug manufacturers 30 days to meet government-set price targets. If they fail to make 'significant progress' within that timeframe, the administration will move forward with additional measures. These include federal rulemaking, expanded drug importation, and support for direct-to-consumer distribution models that bypass insurers and pharmacy benefit managers (PBMs). Prescription drug prices in the US are significantly higher than in other developed countries. Pharma companies launched new US drugs at prices 35% higher in 2023 compared to those launched in 2022, according to a Reuters article. The administration argues that US consumers have long been subsidising lower drug prices abroad, particularly in Europe. Speaking at a 12 May White House press briefing, Trump said: 'The drug lobby is the strongest lobby. But starting today, the US will no longer subsidise the healthcare of foreign countries, which is what we were doing.' He cited a personal anecdote involving a businessman friend who reported paying $88 for a weight-loss injection in London, UK, compared to $1,300 for the same drug in New York. 'It's the same box, made in the same plant, by the same company,' Trump said. 'We no longer tolerate profiteering and price-gauging from big pharma.' The executive order instructs the Secretary of Health and Human Services (HHS) to coordinate with other agencies to communicate specific pricing targets to manufacturers. It also calls for exploring legal avenues to block what it calls 'unreasonable or discriminatory' pricing practices and to prevent foreign governments from driving global prices down at US consumers' expense. Despite the order, several big pharma companies saw their stock prices rise on Monday (12 May), including Regeneron, which saw a 9% rise; MSD, which reported a 6% increase; and AbbVie, which saw a 4% uptick. These proposals build on previous administration efforts. Trump's previous attempt to introduce the policy in 2020 aimed to limit Medicare Part B reimbursement rates to prices paid in a select group of developed countries. That rule was ultimately invalidated by a federal judge and rescinded under President Joe Biden. The Pharmaceutical Research and Manufacturers of America (PhRMA), the sector's leading trade group, warned that the move would have serious consequences for innovation and access. 'Importing foreign prices from socialist countries would be a bad deal for American patients and workers,' said PhRMA CEO Stephen Ubl. 'It would mean fewer treatments and cures and would jeopardise the hundreds of billions our member companies are planning to invest in America – threatening jobs, hurting our economy and making us more reliant on China for innovative medicines.' While PhRMA acknowledged the problem of high US drug prices, it argued that foreign countries underpay for innovation and that domestic price inflation is largely driven by middlemen. 'The US is the only country in the world that lets PBMs, insurers, and hospitals take 50% of every dollar spent on medicines,' Ubl said. 'The amount going to middlemen often exceeds the price in Europe.' The pharmaceutical sector has historically resisted the 'most favoured nation' approach, warning it could reduce global R&D investment and lead to supply disruptions. However, Trump framed the policy as a corrective to long-standing inequities in global drug pricing, saying: 'For the first time in many years, we'll slash the cost of prescription drugs, and we will bring fairness to America.' "Pharma faces 30-day deadline under Trump's pricing order" was originally created and published by Pharmaceutical Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
