Washington: US President Donald Trump’s announcement of sweeping prescription drug price cuts is expected to ripple across global pharmaceutical markets, including India’s generics-driven drug export sector, as Washington moves toward international price benchmarking.
Trump said Americans would soon pay no more than the lowest price charged anywhere in the world. “You’re going to get most favored nations pricing,” Trump said.
The announcement was made alongside HHS Secretary Robert F. Kennedy Jr., Commerce Secretary Howard Lutnick, CMS Administrator Mehmet Oz and FDA Commissioner Marty Makary, as well as executives from multinational pharmaceutical companies.
“For decades, Americans have been forced to pay the highest prices in the world,” Trump said.
He said drugmakers had agreed to deep price reductions on major products. “We signed historic agreements… to reduce prices by 300, 400, 500, 600 and even 700 percent,” Trump said.
Executives present included Sanofi CEO Paul Hudson, Novartis CEO Vas Narasimhan, Genentech CEO Ashley Magargee, Gilead CEO Dan O’Day, GSK CEO Emma Walmsley, Merck CEO Robert Davies and Amgen Executive Vice President Peter Griffith.
Trump said the administration would use tariffs to compel foreign governments to align prices.
“We would never be able to do this without the use of tariffs,” he said.
He added that US drug prices would soon be “among the lowest in the developed world.”
“So we will get the lowest price anywhere in the world,” Trump said.
Trump also tied the policy to expanded US-based pharmaceutical manufacturing.
“They’re coming in and they’re building already,” he said.
India is one of the world’s largest producers of generic medicines and a key supplier to the US market, particularly for affordable treatments for chronic diseases.
Indian drug prices are often among the lowest globally.
Any US move toward global price benchmarking is closely watched by Indian pharmaceutical exporters, given the importance of the American market to India’s drug industry.
(IANS)
