Former President Donald Trump made it very clear when he tweeted the following threat to pharmaceutical companies. He promised to use “every tool in our arsenal” against the companies that fail to comply by cutting their drug prices for Americans in the next 60 days. The President’s plan would like to see the cost of the drugs we sell here match the lowest price other developed nations pay. He says making the measure include tuition will further lighten the load that so many families are feeling.
On Thursday, Trump followed through by issuing threat by sending letters to CEOs of 17 top drug companies. To start with, he insisted that they cut their U.S. prescription drug prices to their lowest levels found among other developed countries. He called the state of the market today an “unacceptable burden” on American families. He brought attention to the fact that the price of drugs in the U.S. is as much as three times what they are in other countries.
The proposed initiative, known as “Most Favored Nation,” seeks to ensure that U.S. drug prices do not exceed those offered elsewhere. Trump emphasized the urgency of the situation, stating, “Americans are demanding lower drug prices, and they need them today.” These comments are in line with a public mood that consumers have become louder and angrier at ever-rising medicine prices.
In fact, during the campaign, Trump focused on pharmaceutical monopolies. He understood that reaching price parity would be difficult, while asserting that a concerted effort from the private sector and government was necessary. He stated, “Make no mistake: a collaborative effort towards achieving global pricing parity would be the most effective path for companies, the government, and American patients.”
We want America protected by the active administration of Trump. He says he wants to end what he calls pharma’s abusive pricing practices. In advancing these demands, the mayor made it clear that if stakeholders did not work to meet his demands, action would be taken by his administration. “If you refuse to step up we will deploy every tool in our arsenal to protect American families from continued abusive drug pricing practices,” he asserted.
The recommendations have received welcome and opposition from the myriad players in the healthcare industry. Advocates for lower drug prices have praised Trump’s move. They view it as an important, necessary first step toward addressing the sky-high costs that burden hundreds of millions of Americans. On the other hand, other industry stakeholders warn that these onerous pricing requirements would reduce innovation and restrict access to new medicines.
As the deadline approaches, Big Pharma knows that they’re being watched with a very close eye. Will they give in to Trump’s demands, or will they be willing to take the heat for not bowing down? This limited proposal would nonetheless be a highly significant precedent for the United States on drug pricing. It will determine how these prices get transacted going forward.