Overview

• President Trump signed an executive order aimed at reducing prescription drug costs by reforming Medicare's price negotiation process and addressing inequities in drug pricing timelines.
• The order directs HHS and FDA to collaborate with Congress to align Medicare payments with hospital acquisition costs, potentially lowering prices by up to 35%.
• Key initiatives from Trump's first term, such as discounted insulin and epinephrine for low-income patients, have been reinstated to provide relief to underserved communities.
• Regulatory measures include streamlining FDA approval for generics and biosimilars and facilitating drug importation from countries like Canada to promote competition.
• The order seeks to address the 'pill penalty' by proposing legislative changes to align negotiation timelines for small molecule drugs and biologics, a move supported by the pharmaceutical industry.