Trump signs the executive ordinance asking companies to reduce drug prices

President Trump on Monday signed an executive order Asking drug manufacturers for a voluntary reduction in the prices of key drugs in the United States.

But the order does not cite obvious legal rights to order lower prices. The Order stated that the administration would consider taking regulatory measures or importing drugs from other countries in the future if drug manufacturers do not follow.

It was a kind of victory for the pharmaceutical industry that was preparing for a politics that would be much more harmful to her interests.

On Sunday evening, Mr. Trump said in social truth that we would connect drug prices with those in peers under the price model “The most privileged nation”, a policy, which he unsuccessfully undertook in his first semester for a diminutive drug set in Medicare. His executive order does not do it on Monday. Pharmaceutical actions increased on Monday morning in news.

The executive ordinance of Mr. Trump took place only a few hours after the Republicans from the Chamber offered an extensive set of changes in healthcare policy, which would reduce about $ 700 billion from Medicaid and Obamacare markets in a decade and would cause that about 8.6 million Americans would become unincession. Congress refused to take into account all regulations regarding direct limitation of medicines in this package.

The executive order also called on federal agencies to investigate why European countries get lower prices and force them to pay more. The Trump administration has a restricted lever to boost prices in Europe.

“I do not knock pharmaceutical companies,” Trump said shortly before signing the order. “I really knock on countries than pharmaceutical companies.”

In his executive ordinance, Trump decided not to propose measures that could have more teeth, such as calling for administration to cooperate with Congress on the provisions on legislation or writing regulations regarding the change, how government health programs pay for some drugs.

Many Republican legislators are opposed to drug prices, but Mr. Trump has long been in the current system in which pharmaceutical companies are collecting the United States much higher than the rest of the world.

During the Monday event, Mr. Trump directed his anger towards European rule, which negotiated lower prices.

“We will support pharmaceutical companies in other nations,” he said.

Mr. Trump threatened to utilize commercial policy to force European countries to pay more prescription drugs. But pharmaceutical companies are already locked in a contract with governments, and if they try to take more for fresh drugs, European countries can cover them at all.

In the first term, Mr. Trump unsuccessfully tried to introduce a more substantive policy to reduce medicines for Medicare, a health insurance program that includes 68 million Americans who are over 65 years elderly or have disability. This plan would utilize only 50 drugs administered in clinics and hospitals that are paid by Medicare. The federal court blocked him, ruling that the administration omitted the steps in the process of creating politics.

Some experts said that politics could protect a legal meeting if it was implemented by a book, while others stated that he would need a congress to adopt the law.

The Monday executive ordinance, at first glance, requires changes in a much larger number of drugs and for all Americans, not only patients insured by Medicare. But he lacks a clear mechanism for introducing price reductions.

The order was found that if the initial actions did not make enough progress in lowering drug prices in the US, the Trump administration may “propose a plan to create regulations to impose the valuation of the most privileged name.”

Democrats have introduced many bills to adapt American prices more compatible with foreign peers, and the provisions adopted during Biden administration allow Medicare to directly negotiate the price of a restricted set of drugs used in the program. In general, the rules that reduce medicine prices are Very popular among republican and democratic voters.

The drug industry is also prepared to punish tariffs for imported drugs, which Trump swore soon to impose. Mr. Trump recently said that he is planning to announce pharmaceutical tariffs this month. Tariffs would most likely raise some drug prices in the United States and reduce drug producers’ profits, even if they can transfer some additional costs.

Pharmaceutical investors felt relieved that Mr. Trump did not propose a more substantive policy he threatened. After the fall in Premarket trade, pharmaceutical actions reflected when the details of Mr. Trump’s movement became clear. Merck shares increased by 5 percent on Monday morning. Pfizer’s increased by 3 percent. The indicator of smaller supplies of biotechnology increased by 3 percent.

“Better than I was afraid,” wrote Analysts from Wall Street Bank, which Jefferies in a note for investors.

IN statements on MondayLobbying groups for drug producers have said that the United States should not look for other countries for how much they pay for drugs.

But the main industry group, Phrma, praised Mr. Trump for threatening the utilize of commercial negotiations in order to force foreign rule “to pay truthful participation in drugs.”

“Patients from the USA should not raise the bill for global innovations,” said Stephen J. UBL, CEO of Phrma.

Branded drug prices in the United States are Three times higherOn average, like those in peer countries.

This applies to the fact that most of the research leading to fresh drugs takes place in American laboratories and hospitals.

Drug producers generate The vast majority Their world sales profits in the United States and usually develop their business strategy around the American market.

Pharmaceutical companies say that higher prices in the United States have additional benefits: analyzes financed by the industry have shown that patients in the United States receive drugs fasterand with smaller insurance restrictions than in other countries.

In other affluent countries, the government generally pays for prescription drugs for the entire population, negotiating significant discounts from drug producers. Many other nations Make your own comparisons With prices in peer countries that will support you determine what they are ready to pay.

But in the United States, the government has a very little formal involvement in setting medicine prices, in addition to the program from Biden for a restricted number of drugs in Medicare. The Trump administration supervises this program.

This month, Senator Josh Hawley, a Republican from Missouri and Senator Peter Welch, a democrat from Vermont, introduced a bill that would limit drug prices in the United States to average prices paid by a group of peer countries.

In an interview, Mr. Welch said that he agreed with Mr. Trump, that Americans overpay for drugs and that international comparisons can support in establishing just prices. However, he believes that Congress must solve this problem to ensure a eternal policy.

“It’s really crucial to do it legislative,” he said.