Trump says he asked 17 drugmakers to take steps to cut U.S. prices within 60 days

President Donald Trump on Thursday stated he asked main pharmaceutical corporations to take steps to cut U.S. drug prices within the following 60 days.

On Reality Social on Thursday, Trump posted particular person letters he despatched 17 drugmakers: AbbVie, Amgen, AstraZeneca, Boehringer Ingelheim, Bristol Myers Squibb, Eli Lilly, EMD Serono, Genentech, Gilead, GSK, (*17*)Johnson & Johnson, Merck, Novartis, Novo Nordisk, Pfizer, Regeneron, and Sanofi.

Trump threatened to “deploy each device in our arsenal to defend American households from continued abusive drug pricing practices” if corporations refuse to comply. He asked for every firm to commit to his a number of targets by Sept. 29.

The letters come after Trump in Could signed an government order reviving a controversial plan, often called the “most favored nation” coverage, that goals to slash drug prices by tying the prices of some medicines within the U.S. to the considerably decrease ones overseas. It was Trump’s newest effort to attempt to rein in U.S. prescription drug prices, that are two to 3 times greater on common than these in different developed nations – and up to 10 instances greater than in sure nations, in accordance to the Rand Corp., a public coverage assume tank.

Within the letters on Thursday, Trump stated drugmakers have proposed potential options for prime U.S. drug prices. However he stated these proposals “promised extra of the identical: shifting blame and requesting coverage modifications that may lead to billions of {dollars} in handouts to the trade.”

He stated shifting ahead, he will solely settle for commitments from drugmakers that present “American households rapid reduction from the vastly inflated drug prices and an finish to the free journey of American innovation by European and different developed nations.” Trump stated a collaborative effort in the direction of decreasing U.S. drug prices can be the “only path” for corporations, the federal government and sufferers.

Shares of drugmakers fell following the announcement on Thursday. Shares of Bristol Myers Squibb and Novo Nordisk dropped practically 5%, GSK and Merck’s shares fell greater than 3% and shares of Sanofi tumbled greater than 8%.

Listed below are the steps Trump is asking corporations to take:

• He known as on drugmakers to present their full portfolio of current medicines on the lowest value supplied in different developed nations – or what he calls the most-favored-nation value – to each single Medicaid affected person.
• Trump additionally asked corporations to contract with the U.S. to assure that Medicare, Medicaid and business payers obtain most-favored-nation prices on all new medication upon launch and shifting ahead.
• He known as on corporations to negotiate more durable with what he known as “overseas freeloading nations,” including that U.S. commerce coverage will attempt to assist that effort. He stated elevated revenues overseas should be “repatriated to decrease drug prices” for American sufferers and taxpayers via an settlement with the U.S.
• He asked drugmakers to undertake fashions that promote their medicines instantly to shoppers or companies, which successfully eliminates middlemen and goals to be certain that all Individuals get the identical most-favored nation prices that corporations supply to third-party payers.

Alex Schriver, senior vp of PhRMA, the trade’s largest lobbying group, stated “importing overseas value controls would undermine American management, hurting sufferers and staff.”

The group added that to scale back value variations with different nations, U.S. officers ought to “rein in well being care middlemen driving up prices for Individuals and get overseas nations to pay their fair proportion for progressive medicines.” PhRMA is referring to pharmacy profit managers, insurers and different payers.

In separate statements, spokespeople for Pfizer, Novo Nordisk and Novartis stated they’re working to discover options that assist Individuals entry and afford medication they want.

Pfizer stated that the corporate’s discussions with the Trump administration and Congress “have been productive.” Novartis stated it’s reviewing the letter.

The announcement comes simply days after AstraZeneca stated it has proposed value cuts to sure medication within the U.S., and that the Trump administration is contemplating these proposals. AstraZeneca added that it’s contemplating promoting some medication to sufferers instantly, which is a transfer that corporations like Eli Lilly, Novo Nordisk, Pfizer and Bristol Myers Squibb have adopted as sufferers battle to afford medication within the U.S.

Drugmakers are additionally bracing for the president’s deliberate tariffs on prescription drugs imported into the U.S.