Trump’s drug price ultimatum sets pharma firms scrambling
Lock points
- A new ultimatum demanding “binding commitments” to reduce the US drug prices was sent to the pharmaceutical companies confused on Friday.
- President Trump sent letters to 17 major companies that summarize the steps they need to take to reduce costs.
- Health stocks rolled on Friday following the wider market losses while digesting the modified tariffs of investors Trump.
Pharmaceutical companies are trying to respond to a new ultimatum from US President Donald Trump. The White House said on Thursday that the US prescribed drugs sent a letter to 17 major pharmaceutical companies that summarize the steps they need to take to reduce the price of prescription drugs to the “most preferred nation” levels until September 29th. The government was told that “Arsenal” will “maintain each vehicle” in the Arsenal. Companies that will receive letters were Abbvie, Amgen, Astrazaneca, Boehringer Ingelheim, Bristol-Myers Squibb, Eli Lilly, EMD Serono, Roche’s subsidiary Genentech, Merck, Novartis, Novo Nordisk, Pfizer, Regeron and Sanofi. Health stocks rolled on Friday following the larger market losses while digesting Trump’s changed trade tariffs. Wegovy-Macer Novo Nordisk shares fell 5% in trade in the early hours of the morning, and their losses are at 21:15 London time (6:15 am meat) to trade 1.3% lower. Companies were informed that all Medicaid patients with US health program for low -income patients should give MFN prices. In addition, other developed markets were told that they should not give medicine at better prices than those offered in the USA and to sell drugs directly to US patients and thus cut their pharmacy intermediaries known as pharmacy benefit managers (PBMS). Trump, who had previously planned to reduce US prices by 80%, has long been having pharmaceutical companies since it was fair pricing applications. In May, the President signed an executive order to reduce drug costs by connecting the prices of some drugs in the USA to those with significant lower abroad within the scope of the MFN policy. The United States is partly paying the most in the world for many prescription drugs due to its highly complex and fragmented reimbursement system and lack of national pricing control. The latest announcement calls for clarity on potential tariffs throughout the pharmaceutical industry. Trump warned that they could go up to 200%before. Many companies still shared that they accepted some of Trump’s concerns. Astrazeneca CEO Pascal Soriot said on Tuesday that Anglo-Swedish has closely contacted the US administration in the MFN policy and the US in a broader way. Last week, he announced that it plans to invest $ 50 billion in the United States after a number of other pharmaceutical companies. “There are problems around the prices. Personally, I believe the right to say that the President’s price equalization should be realized.” Vas Narasimhan, CEO of Swiss -based Novartis, said last month that the company pursued a MFN policy to reduce US drug prices. In the meantime, Novo Nordisk spokesman said the company “focuses on improving patient access and affordable price” and “will continue to find solutions that help people access the drug they need”. JPMorgan analysts said on Friday, despite the aim of the last announcement to serve as a sharp warning, the ongoing negotiations between the US administration could buy some time to respond to pharmaceutical companies. “Although the last announcement of the government seems harsh, we think that the issue is likely to be discussed to some extent between companies and the government, and we believe that no change will occur in the short term,” “the last announcement of the government seems harsh.” He said.
