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Trump Gives Pharma 60 Days to Cut U.S. Drug Prices or Face Action

Following an unheeded May executive order, the White House is seeking to tether U.S. drug costs to the lowest global prices despite legal and logistical hurdles in benchmarking new medicines.

Overview

  • On July 31, President Trump sent letters to 17 leading pharmaceutical CEOs demanding binding commitments on price reductions by September 29 or threats to use “every tool” at the government’s disposal.
  • The administration requires companies to extend a most-favored-nation guarantee to Medicaid, offer new medicines at the lowest international rate, and return excess foreign revenues to U.S. patients and taxpayers.
  • This escalation marks the first concrete deadline after a failed 30-day May executive order and underscores renewed White House pressure on drugmakers.
  • Industry experts question how to apply global price benchmarks to drugs launched first in the U.S., highlighting potential legal challenges and operational gaps.
  • Pharmaceutical stocks dipped on Friday as investors weighed the impact of heightened regulatory uncertainty and looming compliance demands.