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4d ago

Trump Orders 17 Pharma CEOs to Cut U.S. Drug Prices Within 60 Days

He aims to enforce parity with international drug prices through binding commitments under threat of regulatory and trade actions.

U.S. President Donald Trump gestures on the day he signs an executive order on prescription drug pricing during a press conference in the Roosevelt Room at the White House in Washington, D.C., U.S., May 12, 2025. REUTERS/Nathan Howard

Overview

  • On July 31, Trump sent letters to the CEOs of 17 major drugmakers including Eli Lilly, Pfizer and Merck demanding binding commitments within 60 days.
  • The letters require extension of most-favored-nation pricing to Medicaid, guaranteed MFN rates for newly launched drugs, repatriation of increased foreign revenues and establishment of direct-to-consumer purchasing channels.
  • Trump’s directive follows his May executive order on most-favored-nation drug pricing and invokes promised use of every available regulatory and trade tool for enforcement.
  • White House officials Karoline Leavitt, Robert F. Kennedy Jr. and Dr. Mehmet Oz are tasked with immediate engagement and implementation oversight.
  • Industry experts and trade groups warn of potential legal challenges over presidential authority and concerns over impacts on innovation and global supply chains.