U.S. President Donald Trump stated that he will sign an executive order aimed at significantly reducing prescription drug prices in the United States, ensuring that American consumers pay no more than the lowest prices available in any country. This initiative could have a profound impact on the global pharmaceutical market landscape.
Trump announced on social media that the executive order will be signed at 9 a.m. on Monday in Washington. He claimed that the policy would drive U.S. drug prices down by 30% to 80% and could indirectly lead to a rise in other countries' drug prices, achieving what he called "global price balance."
"This will be the first time in years that the U.S. manages fairness in the pharmaceutical sector!" Trump wrote. He emphasized that the so-called "most favored policy" means that the U.S. will no longer bear the "unjust costs" of global drug price disparities, resulting in an "unprecedented reduction" in U.S. healthcare expenses.
For a long time, U.S. drug prices have remained high globally, which, although believed to drive innovation and pharmaceutical industry development, has also burdened consumers heavily. The pharmaceutical industry is generally concerned that imposing a price cap on the U.S. market will significantly reduce company revenues and weaken new drug research, especially for breakthrough therapies that have the potential to extend life.
Trump addressed these concerns in his speech, arguing that the U.S. has effectively become "the world's sucker," footing the bill for other countries' low-cost drugs. He emphasized that the new policy will reverse this "unfair" situation.
This executive order may attract widespread attention and controversy within the pharmaceutical industry and international markets. Industry insiders generally believe that if the policy is fully implemented, it could structurally impact the global pharmaceutical pricing system.
