Overview

• President Trump sent ultimatum letters to 17 major pharmaceutical companies demanding they reduce U.S. drug prices to the lowest levels paid abroad by September 29, 2025.
• Companies have been instructed to enact price cuts ranging from 500 to 1,200 percent under the expanded Most Favored Nations executive order.
• Trump warned that failure to comply will prompt the administration to deploy every tool to enforce the policy, including potential federal intervention.
• Health policy experts and industry analysts widely ridiculed the administration’s multi-hundred-percent targets as mathematically impossible and legally vulnerable.
• The policy builds on earlier Medicare negotiation reforms but revives a Most Favored Nations rule previously blocked in court, setting the stage for anticipated legal battles.