Trump demands pharma CEOs lower drug prices within 60 days

Published 31/07/2025, 18:50
© Reuters.

Investing.com -- President Donald Trump has sent letters to the CEOs of 17 pharmaceutical companies demanding action to address high prescription drug costs in the United States, the White House announced Thursday.

Trump shared the letters sent to major pharmaceutical firms including Regeneron (NASDAQ:REGN), Merck (NSE:PROR), AstraZeneca (NASDAQ:AZN), GSK, Pfizer (NYSE:PFE), Novo Nordisk (NYSE:NVO), Amgen (NASDAQ:AMGN), Bristol-Myers, AbbVie (NYSE:ABBV), Novartis (SIX:NOVN), Johnson & Johnson (NYSE:JNJ), Genentech, EMD Serono, Boehringer Ingelheim, and Gilead (NASDAQ:GILD) on his Truth Social platform.

In the letters, Trump referenced his May 12, 2025 Executive Order titled "Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients," which aims to ensure Americans pay the same prices for medications as other developed nations. The President noted that brand name drug prices in the U.S. are currently up to three times higher on average than in other countries for identical medicines.

Trump called on pharmaceutical manufacturers to take four specific actions within the next 60 days, by September 29, 2025:

First, extend Most-Favored-Nation (MFN) pricing to Medicaid patients for their full portfolio of existing drugs.

Second, guarantee MFN pricing for newly launched drugs for Medicare, Medicaid, and commercial payers both at launch and going forward.

Third, return increased revenues from abroad to American patients and taxpayers, with Trump stating that U.S. trade policy would support manufacturers in negotiating harder with "foreign freeloading nations."

Fourth, participate in Direct-to-Consumer and Direct-to-Business distribution models for high-volume, high-rebate prescription drugs to ensure all Americans receive the same low MFN prices.

The President warned pharmaceutical companies that if they refuse to cooperate, his administration would "deploy every tool in our arsenal to protect American families from continued abusive drug pricing practices."

Trump stated that his team, including Secretary Kennedy and Administrator Oz, are ready to implement these terms and expect immediate good faith engagement from the companies.

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