Washington: US President Donald Trump announced what he described as the most far-reaching effort in decades to lower prescription drug prices, saying American patients would soon pay no more than the lowest prices charged anywhere in the world.
“You’re going to get most favored nations pricing, meaning they’re going to pay our country the lowest price paid anywhere in the world,” Trump said at the White House alongside senior administration officials and top executives from the global pharmaceutical industry.
He said Americans had long paid disproportionately high prices compared to patients overseas.
Those present included Health and Human Services Secretary Robert F. Kennedy Jr., Commerce Secretary Howard Lutnick, Centers for Medicare and Medicaid Services Administrator Mehmet Oz and Food and Drug Administration Commissioner Marty Makary.
“For decades, Americans have been forced to pay the highest prices in the world for prescription drugs, by far,” Trump said. “We have 4 per cent of the world’s population… yet pharmaceutical companies make 75 per cent of their profits.”
Trump said leading pharmaceutical companies had agreed to slash prices on their flagship drugs and offer those medicines to Americans at globally benchmarked rates.
“We signed historic agreements… to reduce prices by 300, 400, 500, 600 and even 700 per cent,” he said.
Executives attending the announcement included Sanofi CEO Paul Hudson, Novartis CEO Vas Narasimhan, Genentech CEO Ashley Magargee, Boehringer Ingelheim (USA) CEO Jean-Michel Boers, Gilead CEO Dan O’Day, GSK CEO Emma Walmsley, Merck CEO Robert Davies, Bristol Myers Squibb General Counsel Cari Gallman and Amgen Executive Vice President Peter Griffith.
Trump said the administration would enforce compliance through trade measures if necessary. “If they don’t, we’re going to put tariffs on them,” Trump said. “We would never be able to do this without the use of tariffs.”
He said US drug prices would begin falling next year and would “come down fast and furious.”
“So we will get the lowest price anywhere in the world,” he said.
Trump also said savings should benefit patients directly rather than insurance companies.
“The money should be paid not to the insurance companies, directly to the people,” he said.
High prescription drug prices have remained a persistent political issue in the United States, particularly for seniors and patients with chronic illnesses. Successive administrations have struggled to lower costs without triggering industry backlash.
Trump has repeatedly argued that Americans subsidize lower drug prices abroad and has revived his “most favored nations” pricing concept to tie US prices to international benchmarks.
(IANS)
