Trump’s Price of Trump Ultimatum sets pharmaceutical companies that diverge

Pharmaceutical companies are struggling to respond to a fresh ultimatum by US President Donald Trump asking for “binding commitments” to reduce drug prices in the stateS

The White House said on Thursday that President Trump had had letters sent Up to 17 major pharmaceutical companies outlining the steps they need to take to reduce the price of US prescription drugs to the levels of the “most favorable nation” (MFN) by September 29.

They were told that if they “refuse to activate”, the government would deploy any instrument in its “Arsenal for the Protection of US Families from Prolonged Drug Problem Projects” without stating what these measures might be.

Companies to receive letters were Abbvie., Amgen., AstrazenecaBoehringer Ingelheim, Bristol-Myers Squibb., Eli LilyEMD Serono, Roche ‘S subsidiary Genentech, Gilead., GSK., Johnson & Johnson., Mercate., Novartis., Novo nordisk., Pfizer., Regeneron and SanofiS

Health shares fell apart on Friday, after broader market losses, as investors are absorbing Trump’s changed trade tariffs. The shares of the creator of Wegovy Novo Nordisk dropped by 5% in the early morning trade before reducing the losses of trading by 1.3% lower at 11:15 pm London (6:15 pm ET).

Companies were informed that they should provide MFN prices to all patients with Medicaid, the US health program for low -income patients.

They were also told not to offer medicines in other developed markets at better prices than those offered in the United States and that they should sell medicines directly to US patients, thus reducing the pharmacy Intermediaries known as pharmacy managers (PBM).

Trump has long accepted pharmaceutical companies for what he duplicates are unfair pricing practices, having previously said that he plans to reduce US prices by 80%.

In May, the President signed an enforcement order for lower drug costs By binding the prices of some medicines in the United States with significantly lower MFN policy abroad.

USA consistently pays most in the world For many prescription drugs, partly due to the highly complex and fragmented US recovery system and the lack of national pricing control.

The last message comes as the pharmaceutical industry is also summary About the potential tariffs for the whole industry. Previously, Trump warned that they could reach up to 200%.

Many companies, however, have shared that they agree with some of Trump’s concerns.

Astrazeneca CEO Pascal Sorot said on Tuesday that the Anglo-Spy Company was close With the US administration on MFN’s policy and investment in US production more widespread. Last week, she announced plans to invest $ 50 billion in the United States, after a number of other pharmaceutical companies.

“There are problems with prices. I personally believe that the president is right to say that the price equalization should happen,” Sorot told reporters to call for profits.

SA Narasimhan, CEO of Novartis, based in Switzerland, said last month that the company was pursuing MFN policy to reduce drug prices in the United States.

In the meantime, a spokesman for Novo Nordisk said the company “focused on improving patient access and accessibility” and “will continue to work to find solutions that help people have access to the necessary medicines.”

JPMorgan analysts said on a note on Friday that while the last message was intended to serve as a great warning, continuing conversations between the US administration could buy pharmaceutical companies for some time to respond.

“Although the latest government may seem harsh, we believe that the issue is likely to be discussed to some extent between companies and the government and we believe that there are no changes in the short term that would have a significant negative impact on pharmaceutical companies,” said SEIJI WAKA, said in the short term.