President Donald J. Trump Unveils Measures to Secure Lowest Drug Prices Globally for US Citizens
In a bold move to address the ongoing issue of abusive drug pricing practices, President Trump has sent letters to leading pharmaceutical manufacturers, requesting them to bring down prescription drug prices in the U.S. to match the lowest price offered in other developed nations [1].
The letters warn that if manufacturers "refuse to step up," the federal government will use all available tools to protect American families from continued high drug prices [2]. Today's letters indicate that industry proposals have fallen short, and President Trump will only accept from drug manufacturers a commitment that provides immediate relief from vastly inflated drug prices [2].
The President's plan to reduce prescription drug prices involves implementing a Most-Favored-Nation (MFN) policy, which aims to lower U.S. drug prices to match the lowest prices paid in other developed countries [1]. The initiative, formalized in a May 12, 2025, executive order titled "Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients," revives a similar policy from 2020 that previously faced legal challenges and was rescinded by the Biden administration [1][3].
Key details of the plan include requiring pharmaceutical companies to match their U.S. drug prices to the lowest price offered to developed nations for the same medications, which the administration estimates could reduce prices by up to 59% [1][2]. The plan also calls for companies to expand MFN pricing to all Medicaid beneficiaries and ensure new drugs are priced no higher in the U.S. than in other advanced economies [3][4].
Moreover, the initiative introduces direct purchasing options for high-volume, high-rebate drugs, allowing patients to buy directly at the MFN price, potentially bypassing traditional pharmacy benefit managers [2][3]. Additionally, the administration plans to use trade policies to influence international pricing and require that any higher revenues earned abroad are reinvested to lower U.S. drug prices [3].
The announcement has caused significant concern among pharmaceutical companies and investors, reflected in a drop in pharma stock prices [1]. Some companies like Pfizer and Bristol Myers Squibb have started offering certain drugs at lower direct-to-consumer prices, aligning with the policy goals [4].
It's important to note that drug manufacturers benefit from generous research subsidies and enormous healthcare spending by the U.S. Government, but do not pass these benefits to American consumers [5]. Americans are subsidizing drug-manufacturer profits and foreign health systems, both in development and once the drugs are sold [6].
President Trump's letters to leading pharmaceutical manufacturers are an important step in his work to get Americans the best deal in the world on prescription drugs [7]. The President has been relentless in his effort to address the unfair and outrageous prices Americans pay for prescription drugs [8]. On May 12, 2025, President Trump signed an Executive Order titled: "Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients." The prices Americans pay for brand-name drugs are more than three times the price other Organization for Economic Cooperation and Development nations pay [9]. The United States has less than five percent of the world's population, yet roughly 75% of global pharmaceutical profits come from American taxpayers [10].
In summary, President Trump’s MFN program mandates that U.S. drug prices be no higher than the lowest prices in other advanced nations, with a strong emphasis on regulatory and trade enforcement to achieve these reductions within a tight timeline [1][2][3][4]. The initiative aims to provide immediate relief to American families and taxpayers from the burden of high drug prices.
- The health-and-wellness sector, specifically pharmaceutical manufacturers, is under scrutiny due to abusive pricing practices, as President Trump has sent letters requesting price reductions to match those in other developed nations.
- Science and finance intersect in the pharmaceutical industry, with the President's plan to reduce prescription drug prices involving a Most-Favored-Nation (MFN) policy that directly affects business and financial aspects.
- The general news highlights concerns about politics and business, as the President's move to implement the MFN policy has caused significant worry among pharmaceutical companies and investors.
- Nutrition and health-and-wellness are connected with the ongoing issue of drug pricing, as the President's initiative estimates that matching drug prices to the lowest offered in other developed nations could reduce prices by up to 59%, providing immediate relief for American families and taxpayers.
