Trump Requests Drug Companies to Reduce U.S. Prices Promptly

On Thursday, the former President announced he urged major pharmaceutical firms to immediately lower the cost of drugs in the U.S. within a 60-day window.

Utilizing Truth Social, Trump shared letters addressed to 17 pharmaceutical companies, naming Eli Lilly, GSK, Pfizer, Regeneron, Merck, Novo Nordisk, among others.

Trump issued a stern warning to these companies, threatening to use every available means to shield American citizens from ongoing excessive drug pricing if these demands are ignored.

This move follows Trump's earlier executive order in May, which reintroduced the controversial 'most favored nation' plan. This initiative applies international benchmarks to cap U.S. drug costs, aligning them with significantly lower prices outside America. As per the Rand Corporation, U.S. drug prices are exceedingly higher compared to other developed countries—sometimes up to ten times more.

In the letters, Trump criticized the drugmakers' solutions to the high cost issue, claiming they offered ineffective remedies, blaming others, and seeking policy alterations that would benefit the industry with substantial financial gains.

Trump emphasized he would consider proposals only if they promised immediate financial relief for American households and terminated the exploitation of U.S. pharmaceutical advancements by European and other developed nations. He advocated a cooperative approach as the best strategy for reducing drug costs for patients, industry, and the government alike.

Following this announcement, the stock prices of several pharmaceutical companies saw a decline. Notably, Bristol Myers Squibb and Novo Nordisk recorded nearly a 5% decrease, GSK and Merck dropped over 3%, and Sanofi's shares plummeted more than 8%.

Company Actions Requested by Trump

Trump outlined the specific steps he expects these companies to perform to tackle the issue of drug pricing.

The Pharmaceutical Research and Manufacturers of America's spokesperson did not offer an immediate reaction to these developments.

Pharmaceutical firms are also preparing for the potential imposition of tariffs on medicines imported into the United States, as part of the president’s policy measures.