On Thursday, President Trump reached out to 17 of the largest pharmaceutical companies in the world, urging that more be done to lower prescription drug prices, aligning them with the lowest prices found in some foreign nations.
This letter highlights a push to implement a “most preferred country” pricing model, which would base U.S. prescription drug prices on the lowest rates among similarly affluent countries.
Trump insisted that companies must immediately reduce the costs for Medicaid patients on existing medications. Additionally, he specified that prices for new drugs offered to Americans should not exceed those available overseas.
The White House indicated that trade policies would be utilized to encourage manufacturers to raise their international prices to match U.S. rates.
In a firm message to manufacturers, Trump warned that if they do not take action, the federal government will use all available resources to protect American families from ongoing high drug prices.
He has given these companies a window of 60 days to respond.
The letter was sent to major players, including Abbvie, Amgen, Astrazeneca, Boehringer Ingelheim, Bristol Myers Squibb, Eli Lilly, Emd Serono, Genentech, Gilead, Glaxosmithkline, Johnson & Johnson, Merck, Novartis, Novo Nordisk, Pfizer, Regeneron, and Sanofi.
During a briefing, White House Press Secretary Caroline Leavitt announced this new initiative, with Trump sharing the letter on his social media account.
In his correspondence, Trump remarked that he had not accepted any proposals from pharmaceutical companies aimed at reducing high prices.
He noted that most suggestions simply shifted responsibility and were designed to secure substantial handouts for the industry.
Looking ahead, Trump expressed that the only feasible solution is to “swiftly protect American families from being burdened by excessively inflated drug prices,” while also ensuring that American innovation is not hindered by practices in Europe and other developed nations.
The letter emphasized that companies need to establish direct avenues for selling to consumers, enabling them to set prices comparable to those charged by private insurers.
Recently, several pharmaceutical firms, including Eli Lilly and Novo Nordisk, have begun selling anti-obesity medications directly to consumers at competitive rates for those who pay out of pocket.
