Trump seeks to lower drug costs in the U.S., targeting European pharmaceutical markets for potential price reductions.

USA Taking On Pharma Giants: Trump's Crusade to Lower Drug Prices in the Homeland

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United States Presidents push for more affordable medicines domestically, escalating tension with European drug pricing policies. - Trump seeks to lower drug costs in the U.S., targeting European pharmaceutical markets for potential price reductions.

In a bold move, Donald Trump is taking on pharmaceutical giants, aiming to bring down high drug prices in the United States, particularly pinpointing Europe as a key target. Speaking at the White House, Trump voiced his frustration, "We're subsidizing other countries' healthcare, and it stops now."

Whether Trump's efforts will make a difference remains uncertain, given the anticipated political and legal resistance ahead. In his previous term, the Republican tried to tackle high prices but was unsuccessful.

Trump slams Europe as being "more brazen" than China

"Let's not mince words here," Trump stated, "I'm not accusing pharmaceutical companies directly, but they're often forced to comply under pressure. What I have a beef with are the European countries that are benefiting from American patients' contributions to fund socialist healthcare systems, like Germany." He went on to accuse the European Union of behaving "more shamelessly than China" in price negotiations.

In his executive order, Trump secures the "Most Favored Nation" (MFN) principle, promising that the USA will no longer pay more than the lowest global price for certain medications, regardless of market size or economic strength. "The game is up," Trump proclaimed, addressing countries he believes have been leveraging favorable conditions at the USA's expense.

Pressure on the pharmaceutical industry - what's at stake for patients?

Trump's announcement puts pressure on the pharmaceutical industry, particularly since the USA is its most substantial market for innovative medicines. As Han Steutel from the Association of Research-Based Pharmaceutical Companies (VFA) points out, "Without the revenues from the United States, research and development, and new therapies for European patients might not be possible."

An international reference to the lowest price might not cover research costs, and market introductions could become increasingly questionable, Steutel noted. A strong, coordinated EU market with a unified drug policy is what's required instead.

Global implications for the pharmaceutical industry

The consulting firm Simon-Kucher forecasts far-reaching consequences for the worldwide pharmaceutical industry and German companies. A declining revenue scenario in the USA threatens funds for research, production, and jobs, even at German sites, according to the firm's study.

With decreasing US sales, companies will face increased pressure for higher prices in other industrial countries like Germany. Moreover, pharma companies might to avoid low price references and protect the price in the USA by delaying or forgoing market entry in Germany or Europe, according to Simon-Kucher.

Agencies in Action

The implementation of Trump's decree involves several US agencies. The Department of Commerce is prepared to combat foreign pricing policies deemed unfavorable by the USA, such as state-set maximum prices harming US companies. The Department of Health and Human Services will facilitate direct sales of drugs to US consumers at reduced prices, wherever feasible. The Food and Drug Administration will explore the prospect of permitting imports from additional industrial countries. Export restrictions are also under discussion at the White House.

In 30 days, the Department of Health and Human Services must set specific goals for price reductions. Subsequently, the government will engage in talks with the pharmaceutical industry. If the industry does not cooperate voluntarily, additional measures will follow.

The main focus lies on medications exhibiting substantial price disparities between the United States market and abroad. Although specific medications or product groups have not been specified initially, a restriction to certain medication groups is not planned, according to government statements.

A Lobby with Influence - Across the Aisle

Trump criticized the pharmaceutical industry for yielding too much political sway. He claimed, "The lobby is probably the most potent in the world," and added that the opposition Democrats had protected the industry for years.

Indeed, the industry exerts significant influence in Washington, securing a voice in legislation through targeted donations to both Democrats and Republicans. Attempts to reform and lower drug prices often face bipartisan resistance, typically citing potential consequences for research and innovation.

The cost of medications remains a persistent issue in the United States, where unlike many other industrial countries, pricing is primarily controlled by pharmaceutical companies, leading to significantly higher expenses than in Europe. In Germany, various forms of state control apply.

• Donald Trump
• USA
• Europe
• Pharmaceutical industry
• Medication
• Pharmaceutical company
• US President
• Germany
• Republicans
• China
• Drug price
• EU
• Pharmaceutical industry
• America
• HHS

1. The pharmaceutical industry in Europe, especially countries like Germany, could face altered market dynamics as a result of Donald Trump's efforts to lower drug prices in the USA, potentially impacting research, development, and job opportunities in these countries.
2. Trump's executive order, securing the "Most Favored Nation" (MFN) principle, holds implications for the global pharmaceutical industry, as pharmaceutical companies might face increased pressure for higher prices in other industrial countries like Germany to compensate for reduced sales in the USA.
3. Simultaneously, the USA, under Donald Trump's administration, might explore permitting imports from other industrial countries to reduce drug prices, potentially leading to a renegotiation of pricing policies and market dynamics between the USA, Europe, and the global pharmaceutical industry.

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