Mon, 12 May 2025

Mon, 12 May 2025 Trump's order on US drug prices: What's in it, and will it work?

The president promises sweeping price cuts "almost immediately", but experts say these are unlikely.
The order instructs US officials to ensure that foreign deals on drug costs do not lead to "unreasonable or discriminatory" price hikes for Americans, but it is unclear what measures would be taken if such practices are discovered. The White House wants drug companies to sell more products directly to consumers and explore importing drugs from countries where they are sold at lower prices. Investors believe the move will have little immediate effect on drug prices, and stock market moves indicate that major pharmaceutical companies like Pfizer, Eli Lilly, and GSK's UK arm may not be impacted significantly. Researchers suggest that companies could simply pull out of other nations where they sell products more cheaply to retain US profits. The order also proposes giving the US Most Favoured Nation (MFN) status, which would require drug companies to match the lowest price for a drug abroad when selling to US consumers. However, it is unclear how this mechanism will be enforced and what consequences would follow if companies refuse to comply voluntarily. Experts note that drug manufacturers could argue they are already providing discounts on high listed retail prices, making it difficult to determine whether actual prices will decrease. The pharmaceutical industry has criticized the order as potentially counterproductive and said it would lead to fewer funds for research while doing little to address high costs. The effectiveness of Trump's plan will depend on his commitment to addressing the issue, according to a Boston University professor, who suggests that real action requires sustained attention from the president.
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