Something big is coming to the drug industry—and it might change everything
- Replies 0
Next week could mark a major turning point—one that’s already rattling investors and raising eyebrows across Washington.
While details are still being finalized behind closed doors, word is spreading fast: a sweeping new directive may be on the horizon, one aimed squarely at a system many say has gone unchecked for too long.
If the early signs are right, this move could send ripples through health care, Wall Street, and even the 2024 campaign trail.
According to sources cited by Politico, President Donald Trump is expected to sign an executive order as early as next week that would resurrect a controversial effort to slash drug costs by tying US payments for certain medications to the lower prices charged abroad.
The policy, often referred to as a “most favored nation” approach, would apply to select drugs under the Medicare program—potentially shaking up how pharmaceutical pricing works in the United States.
Trump teased the move during a recent White House appearance, claiming a major announcement was coming.
“We're being ripped off, as you know, very badly being ripped off compared to the rest of the world,” he said.
Also read: Trump teases bold next move at high-energy Michigan rally—“we’re just getting started”
He’s not wrong about the numbers: Americans pay nearly three times more for prescription drugs than patients in many other developed nations.
This isn't the first time Trump has gone after drug prices.
His first-term attempt to implement international reference pricing was blocked by the courts, though it was projected to save US taxpayers over $85 billion in its first seven years.
Now, with a new executive order on the table and inflation-weary voters watching closely, the revived plan could become a centerpiece of Trump’s reelection messaging.
But not everyone’s cheering. The pharmaceutical industry is bracing for impact. Stock prices for major drugmakers like Eli Lilly, Merck, Gilead Sciences, and Bristol Myers Squibb took a hit following reports of the proposal.
One executive reportedly called it the biggest “existential threat” to US biosciences innovation.
The move could also put pressure on Biden-era reforms.
While the Inflation Reduction Act gave Medicare limited power to negotiate drug prices, Reuters recently reported that even the first round of negotiated rates remains far above what drugmakers accept in other wealthy countries.
Trump’s plan could widen that conversation—and escalate the political stakes.
Read next: Is America taking too much medicine—and paying the price?
Would you support international price-matching on US drug costs—or do you worry about the impact on innovation? Let us know in the comments.
While details are still being finalized behind closed doors, word is spreading fast: a sweeping new directive may be on the horizon, one aimed squarely at a system many say has gone unchecked for too long.
If the early signs are right, this move could send ripples through health care, Wall Street, and even the 2024 campaign trail.
According to sources cited by Politico, President Donald Trump is expected to sign an executive order as early as next week that would resurrect a controversial effort to slash drug costs by tying US payments for certain medications to the lower prices charged abroad.
The policy, often referred to as a “most favored nation” approach, would apply to select drugs under the Medicare program—potentially shaking up how pharmaceutical pricing works in the United States.
Trump to sign order on drug prices as early as next week, Politico reports. Image source: CTV News / YouTube
Trump teased the move during a recent White House appearance, claiming a major announcement was coming.
“We're being ripped off, as you know, very badly being ripped off compared to the rest of the world,” he said.
Also read: Trump teases bold next move at high-energy Michigan rally—“we’re just getting started”
He’s not wrong about the numbers: Americans pay nearly three times more for prescription drugs than patients in many other developed nations.
This isn't the first time Trump has gone after drug prices.
His first-term attempt to implement international reference pricing was blocked by the courts, though it was projected to save US taxpayers over $85 billion in its first seven years.
Now, with a new executive order on the table and inflation-weary voters watching closely, the revived plan could become a centerpiece of Trump’s reelection messaging.
But not everyone’s cheering. The pharmaceutical industry is bracing for impact. Stock prices for major drugmakers like Eli Lilly, Merck, Gilead Sciences, and Bristol Myers Squibb took a hit following reports of the proposal.
One executive reportedly called it the biggest “existential threat” to US biosciences innovation.
The move could also put pressure on Biden-era reforms.
While the Inflation Reduction Act gave Medicare limited power to negotiate drug prices, Reuters recently reported that even the first round of negotiated rates remains far above what drugmakers accept in other wealthy countries.
Trump’s plan could widen that conversation—and escalate the political stakes.
Read next: Is America taking too much medicine—and paying the price?
