Overview

• President Trump sent letters on July 31 to CEOs of 17 major drugmakers demanding adoption of most-favored-nation pricing to match American rates to the lowest in other wealthy countries.
• The administration requires companies to offer their full drug portfolios at these rates for Medicaid patients and guarantee the same pricing for newly launched therapies.
• Firms are instructed to repatriate additional revenues earned abroad for American patients, establish direct-to-consumer purchasing options and deliver binding commitments by Sept. 29.
• HHS Secretary Robert F. Kennedy Jr. and CMS Administrator Mehmet Oz stand ready to enforce the terms, and the White House may use trade policy, tariffs and sweeping executive measures if companies do not comply.
• Pfizer and other manufacturers have described discussions with the administration as productive even as PhRMA warns that enforced global price parity could undermine U.S. pharmaceutical innovation.