Trump demands pharma companies slash drug prices in next 60 days

On Thursday, former President Donald Trump sent letters to 17 major pharmaceutical companies, urging them to reduce prescription drug prices in the U.S. to levels found in other wealthy nations. This move is part of his administration’s push to implement a “most favored nation” pricing model, which would tie U.S. drug prices to the lowest rates charged overseas.

Trump called on the companies to immediately lower the prices charged to Medicaid patients and to commit that future drugs won’t cost more in the U.S. than they do in comparable countries.

According to the White House, the administration is also prepared to use trade policies to help drugmakers raise prices abroad—on the condition that those extra revenues are used to lower prices for American consumers and taxpayers.

Trump warned that if the companies fail to act, the federal government will use “every tool in our arsenal” to stop what he described as abusive drug pricing. The companies were given a 60-day deadline to comply.

The letters were sent to top pharmaceutical firms including AbbVie, Amgen, AstraZeneca, Bristol Myers Squibb, Eli Lilly, Johnson & Johnson, Merck, Pfizer, Sanofi, and others. Trump later posted the letters publicly on his Truth Social account following an announcement by White House press secretary Karoline Leavitt.

In the letters, Trump criticized past proposals from the drug industry, saying they largely involved passing the blame and seeking government subsidies rather than real price reductions.

“The only acceptable solutions are those that deliver immediate savings for American families and stop developed nations from benefiting unfairly from American innovation,” the letters said.

Trump also insisted that drugmakers establish direct-to-consumer sales channels that bypass middlemen and match the pricing typically offered to insurance companies.

Some companies, such as Eli Lilly and Novo Nordisk, have already begun offering certain medications—like anti-obesity drugs—directly to consumers at discounted rates for those paying out of pocket.

Source: THE HILL