US President Donald Trump has signed a new executive order to lower drug prices- and Big Pharma are ‘not happy’.
U.S. President Donald Trump has signed a new executive order aimed at lowering the high drug prices in the United States by linking them to those of other nations.
“My Most Favored Nation order will ensure that our Country gets the same low price Big Pharma gives to other countries. Trump said in a Twitter post “The days of global freeriding at America’s expense are over.”
Trump had originally signed an executive order in July this year that, among other things, would have required Medicare to match its prices for drugs to those paid by other countries. Its implementation, however, was stalled as the administration worked on a solution for the industry.
From the start of his presidency, the president vowed to take on big pharma. The pharmaceutical industry in America benefits from the fact the government does not regulate prices, unlike many countries where government agencies negotiate prices for every drug. In fact, during his 2016 campaign, he continually said he would lower their cost. During his first speech to the joint houses of Congress in February 2017, he vowed to “bring them down immediately.”
Why are drugs more expensive in America than the rest of the world?
According to a recent report, the United States allows drugmakers to set their own prices for a given product — and also allows every drug that’s proven to be safe to come onto market.
What’s harder to see is that if Big Pharma did lower drug prices, would be making a trade-off? Lowering drug profits would surely make pharmaceuticals a less desirable industry for investors, less investment in drugs would mean less research toward new and innovative cures.