Nine of the largest pharma companies ink deals with Trump to lower drug prices

Core Points - President Trump signed an executive order to reduce prescription drug costs by 30% to 80% [1] - Major pharmaceutical companies, including Merck, Bristol Myers Squibb, and Amgen, have agreed to lower drug prices as part of the "most favored nation" policy [2] - U.S. prescription drug prices are nearly three times higher than those in other countries, with branded drugs being over four times higher [3] Group 1: Executive Order and Policy - The executive order aims to link U.S. drug prices to lower prices abroad, addressing the issue of "global freeloading" [1][4] - The "most favored nation" policy was revived to ensure that drug prices outside the U.S. are increased [4] Group 2: Pharmaceutical Companies Involved - Fourteen out of the seventeen largest pharmaceutical companies have agreed to lower prices, with Johnson & Johnson expected to join soon [2] - The companies will sell existing treatments to Medicaid patients at the lowest "most favored nation" price and list popular drugs on the upcoming TrumpRx website [2] Group 3: Market Dynamics - The U.S. is a crucial market for many pharmaceutical companies, with European firms generating a significant portion of their sales from the U.S. market [5] - Trade association PhRMA argues that the most-favored nation pricing may not be the best solution for lowering drug costs, attributing price disparities to pharmacy benefit managers [4]