Trump is trying to reduce the price of US drugs. Industry representatives respond with critics
Donald Trump. Photo: Ted Shaffrey / AP / Profimedia
President Donald Trump signed an executive order on Monday, which returns to a controversial policy that aims to reduce drug prices in the United States, correlating them with the lowest prices in other developed countries, according to CNBC and Reuters.
The order signed by Trump offers 30 days to the producers to reach the prices set, and otherwise other measures will be adopted if the companies do not make a “significant progress” in six months.
Trump has stated in a press conference that he will impose rates for companies that do not line prices as they are in other countries. He said he wants discounts between 59% and 90%.
“Everyone should be equal, everyone should pay the same price,” the US president said.
The White House officials did not specify exactly which medicines will be targeted, but indicated that the measure will focus on treatments with the highest price differences and total costs, such as GLP-1 drugs for diabetes and weakened, writes CNBC, according to news.ro.
The order also stipulates that the Government will consider facilitating direct sale programs to consumers, at prices similar to other countries.
It also obliges the Secretary of Trade and other heads of agents to review and consider actions on the export of drugs or pharmaceutical ingredients that may contribute to price differences.
“A bad move”
Wall Street analysts, such as JPMorgan, warn that the effective implementation of politics will be difficult, probably requiring the approval of the Congress and being exposed to court challenges.
The commercial groups representing the biopharmaceutical industry have condemned the initiative.
“The importation of prices from socialist countries would be a bad move for American patients and workers. It would mean fewer treatments and endanger the investments of hundreds of billions that our member companies plan in America,” said Stephen UBL, FRMA's executive director, in a statement quoted by Reuters.
He added that the real reasons for high prices of drugs are “the fact that other countries do not pay their fair part and that intermediaries contribute to increasing prices for patients in the US.”
“Trump tried this and was blocked by the courts”
The executive order is likely to face legal issues, especially in terms of the limits imposed by American legislation, including those on the import of medicines, said the health lawyer Paul Kim. “The suggestions in order related to direct import to consumers go far beyond what the law allows,” he said.
The executive order was different from what the representatives of the pharmaceutical industry were waiting. Four lobbyists told Reuters that they were expecting an order to provide for “the most favored nation prices” only for some of the medicines covered by medicine.
“The implementation of such an order is very difficult. Trump has tried this and was blocked by the courts,” said Evan Seigerman, an analyst at BMO Capital Markets.
The US pays the highest prices in the world for prescription -based drugs, the difference being even three times higher than in other countries. Trump tried, in his first term, to align the US prices, but the approach was blocked by the courts.
