President Trump demands drugmakers slash prices within 60 days

Government Policy & Regulation - President Trump demanded major drug makers lower prices for Americans within 60 days [1] - President Trump requested drug companies offer their full drug portfolio to Medicaid patients at prices equivalent to those paid abroad, known as the most favored nation rule [1] - Trump urged drug makers to guarantee Medicare, Medicaid, and private insurance patients receive the same lower overseas prices for all newly approved medicines and demanded a direct-to-consumer option for certain drugs [2] - The efforts are expected to face strong opposition from the pharmaceutical industry, and the president's authority to enforce price reductions without Congressional support is uncertain [2] Industry Concerns & Potential Consequences - The implementation of price controls, similar to those in Europe, could stifle pharmaceutical innovation in the US [5] - Concerns exist that price controls may lead to a decline in drug innovation within the country [5] - The fairness argument suggests developed nations should be able to afford drug prices, but the industry should have addressed price control issues earlier [7] Economic Implications - The discussion revolves around importing price controls, raising concerns about the long-term impact on drug development and research [3][5] - The potential unintended consequence of price controls is the reduction of innovation in the pharmaceutical industry [5]