Donald Trump sent letters Thursday to 17 major pharmaceutical companies demanding they slash U.S. drug prices within 60 days. The move signals a sharp escalation of his administration’s pricing crackdown, invoking a “most favored nation” model that pegs American drug prices to the lowest among wealthy nations.
In the letters, Trump directed companies to cut Medicaid prices for current medications and commit to not charging Americans more than foreign counterparts for new drugs. He also urged companies to adopt direct-to-consumer sales to bypass middlemen and match the pricing insurers receive.
The White House said it would support higher international prices if those gains are reinvested in lower U.S. costs. Trump warned that if companies “refuse to step up,” the administration would use all available tools to curb “abusive” pricing practices.
Companies receiving letters include Pfizer, Merck, Johnson & Johnson, Eli Lilly, and Novartis. Trump criticized their previous proposals as favoring industry handouts and blamed foreign governments for benefiting from U.S.-funded innovation without paying fair market rates.
Trump’s demand that pharmaceutical companies match U.S. drug prices to those in other wealthy nations could have “significant negative implications” for American drugmakers, according to analyst David Risinger, including reduced competitiveness against China and financial disruption due to Medicaid and 340B program pricing links.
Some drugmakers have already begun selling certain drugs directly to patients at discounted prices.
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