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Pres. Trump's push to lower drug prices 'is a good starting point', says Dr. Scott Gottlieb
CNBC Televisionยท2025-08-01 12:31

Pharmaceutical Pricing & Policy - The Trump administration is attempting to lower drug prices in the US, potentially through negotiation and jawboning, after previous regulatory efforts were struck down by courts [1][3][4] - The administration proposes that new drug launches in commercial and Medicare markets should adopt the Most Favored Nation (MFN) price prospectively, but applying MFN pricing to Medicaid from day one could significantly impact pharmaceutical company revenues [5][6] - A tiered pricing system based on a nation's wealth (GDP per capita) is suggested as a fairer global approach to drug pricing, with different prices for low, middle, and high-income nations [7] - The US Trade Representative (USTR) should support pharmaceutical companies in pushing back against global pricing authorities, potentially leading to higher prices in other developed countries alongside lower prices in the US [8][9][10][20] - The administration is considering a direct-to-consumer online portal where underinsured or uninsured individuals can purchase heavily rebated drugs at MFN-type pricing [13] FDA & Regulatory Environment - The FDA is experiencing a significant loss of scientific staff, with the Biologic Center seeing 106 departures since the beginning of the year, in addition to 150 RIFs (reductions in force), and the Drug Center losing a third of reviewers for breast and gynecological cancer products and over half of the malignant heme products group [25][26] - The quality and pace of interactions between early-stage companies and the FDA have decreased due to staff departures and firings [27][28] - There are concerns about political meddling and intrusion in the FDA's decision-making, potentially affecting the agency's morale and scientific judgment [31][32]