President Trump takes on 'Big Pharma' by signing executive order to lower drug prices

Published: Monday, May 12, 2025 at 3:13 pm

Trump Takes Aim at "Big Pharma" with Executive Order to Lower Drug Prices

President Donald Trump has signed an executive order aimed at significantly lowering prescription drug prices for Americans. The order, dubbed "most favored nations drug pricing," seeks to align U.S. drug costs with the lowest prices paid by other developed countries. Trump claims this could lead to immediate price reductions of up to 90% on some medications.

The President framed the move as a direct challenge to "Big Pharma," accusing pharmaceutical companies of "profiteering and price gouging." He highlighted that while the U.S. represents only 4% of the world's population, pharmaceutical companies generate over two-thirds of their profits within the country. The order directs the U.S. Trade Representative and Secretary of Commerce to address practices by foreign countries that may unfairly inflate U.S. drug prices. It also instructs the Secretary of Health and Human Services to establish a mechanism allowing Americans to buy drugs directly from manufacturers at the "Most-Favored-Nation" price, bypassing intermediaries.

The White House stated that the order aims to ensure America, as the largest purchaser of prescription drugs, receives the best deals. The order also includes provisions for imposing "most-favored-nation" pricing and other measures to reduce drug costs if manufacturers fail to comply.

The Pharmaceutical Research and Manufacturers of America (PhRMA) has strongly criticized the order, arguing it will harm American patients and jeopardize investment in the U.S. pharmaceutical industry. PhRMA President Stephen Ubl stated that the plan could cut billions from Medicare and make the U.S. more reliant on China for innovative medicines.

BNN's Perspective: While the intent to lower drug prices is laudable, the practicality and potential consequences of this executive order remain uncertain. The plan's success hinges on navigating complex international trade agreements and potentially facing legal challenges from pharmaceutical companies. The potential impact on pharmaceutical innovation and access to new medications warrants careful monitoring. A balanced approach that addresses both drug pricing and the incentives for pharmaceutical research and development is crucial.

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