Washington: The White House said on Thursday that President Donald Trump sent a letter to the leaders of 17 major pharmaceutical companies, saying how to reduce the prices of American prescription drugs to match the people paid abroad.
Trump signed a comprehensive executive order in May, stating that drug manufacturers cut the prices of American drugs to match them abroad, saying that if companies do not comply, the government could use rules to reduce prices or pursue other measures, such as importing cheap medicines from abroad.
Trump said Trump sent letters to the Chief Officers of Ellie Lily, Sanofi, Regenron, Merk & Co., Johnson & Johnson, and Astrajeneca.
“Most of the proposals have received my administration to make ‘resolve’, this important issue has promised more; to transfer the defect and request policy changes, resulting in billions of dollars in the industry,” Trump has written in letters, of which copies were posted on their true social account.
The shares of Fizer, Elli Lily and Gillid Sciences were close to about 2%, while the NYSE ArcA pharmaceutical index fell 3% on Thursday.
Trump asked drug manufacturers to provide so -called most preferred countries prices to every patient enrolled in the Government Medicade Health Program for low -income people and guarantee such pricing for new drugs.
The policy aims to cut the lowest possible price paid by the members of the organization for economic cooperation and development, which includes most of the largest economies in the world.
Trump also said that companies would have to return more foreign revenue than increasing prices in other countries to make up to low prices in the US through an agreement with the government.
They need to determine drug manufacturers that they will not offer other developed countries, which they offer in the United States, and they said that their administration will provide ways to cut the middlemen and sell patients directly, provided that they do so at the most preferred-nation prices.
Trump gave the companies to respond to those conditions by September 29 to respond.
“If you refuse to move the steps, we will deploy every equipment in your arsenal to protect Americans from derogatory drug pricing practices,” he warned.
Analysts, lobists and drug pricing experts said that it was unlikely that pharmaceutical companies would follow Trump’s demand to reduce US prices.
“I can try to determine whether any of his current products can be made available through current sales (one of the requests) at the Vanderbult University, Nashville, Stacey Dusetzina said,” I can try to determine them, which is currently available in the US. “
UBS analyst Troung Hin said that Trump’s letters were repetitive to the demands and played the influence of any possible industry, called it “just another shot in the dark”.
Trump has already insisted on voluntary changes and some companies have promised to build new American manufacturing plants.
American patients pay the most for prescription drugs so far, often about three times more than other developed countries. The country also invests heavily in drug research and development. Drug manufacturers have said that heavy price cuts will stop innovation.
Pharmaceutical companies including PFIZER, Novartis, Abbvie and US Division of German Merc KGAA said that they were open to work with the Trump administration.
Spokesperson Amy Rose said that the Fizer is working closely with the Trump administration and the Congress to improve access to American patients. “Our discussion has been productive,” she said
