President Trump demands pharma giants slash US drug prices; stocks drop
In letters sent to 17 major drugmakers, including Eli Lilly, Novo Nordisk and Pfizer, Trump called for immediate reductions in the prices charged to Medicaid for existing drugs and insisted that any future drug launches in the US come with pricing parity to international markets, the report said.
Trump demands pharma giants slash US drug prices; stocks dropsThe president stated that the US government would assist companies in raising drug prices abroad to match domestic levels, but stipulated that any additional profits earned overseas should be repatriated to offset US drug costs, the Bloomberg report further said.“The only thing I will accept from drug manufacturers is a commitment that provides American families immediate relief from the vastly inflated drug prices and an end to the free ride of American innovation by European and other developed nations,” Trump wrote in one of the letters shared on Truth Social.
The letters were individually tailored in some cases, with personalised versions addressed to company leaders such as Lilly CEO Dave Ricks, Pfizer CEO Albert Bourla, and Regeneron CEO Leonard Schleifer, according to the report.
Trump also called on the companies to implement direct-to-consumer purchasing mechanisms for high-volume drugs, allowing patients to bypass third-party insurers and access medications at the same discounted prices currently extended to insurers.
The pharmaceutical companies have been given a 60-day deadline to comply. Failure to act voluntarily, Trump warned, would prompt the administration to “deploy every tool in our arsenal to protect American families from continued abusive drug pricing practices.”
Shares of several targeted companies reacted to the announcement. Eli Lilly’s stock fell by 0.7% as of early afternoon trading in New York. AbbVie Inc., another company that received the letter, pared earlier gains.
