Former U.S. President Donald Trump has announced a bold new plan to slash prescription drug prices in the United States, aiming to match the country’s drug costs with those of the lowest-paying nations worldwide. The move could significantly disrupt the global pharmaceutical industry.
In a social media post, Trump said he intends to sign an executive order enforcing what he called a “most-favored nation” pricing policy. The order is expected to be signed at 9 a.m. Monday in Washington, signaling an aggressive step to equalize drug costs for American consumers.
Trump stated that the policy would ensure Americans “pay the same price as the Nation that pays the lowest price anywhere in the World.” He predicted that this could lead to a drastic reduction in U.S. drug prices—anywhere between 30% to 80%. Simultaneously, Trump suggested that prices may rise internationally to achieve a global balance, calling the move a way to “bring FAIRNESS TO AMERICA!”
The announcement sparked immediate reaction across global markets. European pharmaceutical stocks saw notable drops, with Novo Nordisk A/S plunging as much as 8.6%, Sanofi SA falling 6.4%, and AstraZeneca Plc dipping 5.8%.
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Asian markets were also shaken by the announcement. Japan’s Chugai Pharmaceutical Co. suffered an 11% drop—the steepest single-day fall in 14 years. Other firms like Daiichi Sankyo Co. and Takeda Pharmaceutical Co. followed with losses. In China, BeiGene Ltd. shares fell 10%, while Jiangsu Hengrui Pharmaceuticals Co. dropped over 4%, despite not currently having products on the U.S. market.
Americans have long paid the highest prices globally for medications, a fact that has helped fuel innovation in the pharmaceutical sector. Drug manufacturers have often warned that pricing reforms could severely impact revenue and slow the pace of developing groundbreaking treatments.
Trump acknowledged this concern but pushed back strongly, stating that the U.S. ends up footing the bill unfairly, calling Americans the “suckers” of the system who pay “for no reason whatsoever.”
While the Inflation Reduction Act, signed by President Joe Biden in 2022, already allows for negotiation on some expensive drugs under Medicare, Trump’s order would potentially go much further. Notably, earlier negotiation rounds under the Act excluded physician-administered drugs, but future updates may broaden that scope.
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