Trump Demands Drug Price Cuts From Pharma Giants

President Donald Trump has issued letters to 17 major pharmaceutical companies, including Eli Lilly, Novo Nordisk, Pfizer, and Novartis, demanding they reduce U.S. drug prices to the level of other developed countries within 60 days or face severe government action. The ultimatum proposes tying Medicaid drug prices to 'most favored nation' benchmarks, extending fair pricing to new drugs, redirecting overseas profits to U.S. patients, and enabling direct consumer drug purchases at international rates. The announcement triggered declines in global pharmaceutical stock prices, notably affecting companies such as Novo Nordisk, Merck, AstraZeneca, and GSK. Industry representatives have warned that these measures could jeopardize U.S. biomedical innovation and alter R&D funding dynamics, while they argue that pharmacy benefit managers play a significant role in current high prices. Some analysts question the practicality and legal standing of the administration's demands, particularly those involving profit redirection and new drug launches. Mark Cuban and others suggest that removing PBMs from the supply chain could actually lower consumer prices and increase R&D spending.