Trump Warns Drug Companies to Lower Prices or Face Government Action

President Donald Trump has warned 17 major drug companies that they must lower their prices to match those in other developed countries or face strong government action. In letters sent to companies like AbbVie, Pfizer, Roche’s Genentech, and Novo Nordisk, Trump gave them 60 days to offer the lowest international prices for their drugs to Medicaid patients. He also demanded that they provide the best international prices for new drugs, sell directly to consumers at these lower prices, and bring back any extra profits made from higher prices charged in other countries. The White House said these steps are necessary to stop other countries from benefiting from U.S. drug innovations without paying fair prices. Earlier, Trump had signed an executive order to negotiate drug prices, but the letters suggest talks have not made enough progress. Drug companies argue that U.S. prices are high because of middlemen called pharmacy benefit managers and because other countries negotiate lower prices. AstraZeneca’s CEO said the U.S. can’t keep funding global drug research alone. The industry group PhRMA warned that importing foreign price controls could hurt patients and jobs. After the announcement, drug company stocks dropped, and experts had mixed reactions. Some said the plan is unrealistic, while others saw it as a smaller step than expected. The focus on Medicaid instead of Medicare was seen as a possible compromise.

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