President Donald Trump sent letters to 17 pharmaceutical companies Thursday, urging them to match drug prices to the lowest price offered in other developed countries within 60 days or face consequences.
The letters were addressed to major drug companies, including Pfizer, AstraZeneca and Johnson & Johnson, setting a deadline of Sept. 29 before the White House would “deploy every tool in our arsenal.”
White House Press Secretary Karoline Leavitt said Americans pay more than three times what people in other developed nations do for identical drugs and said the Trump administration is committed to addressing “the problem of exorbitant pharmaceutical pricing.”
“Other nations have been freeloading on U.S. innovation for far too long, and it is time they pay their fair share,” the letters said.
The letters outlined principles the companies must commit to in the next two months, including lowering drug costs for Medicaid recipients and guaranteeing reasonable pricing for new drugs.
“Moving forward, the only thing I will accept from drug manufacturers is a commitment that provides American families immediate relief from the vastly inflated drug prices,” Trump wrote.
The letters ask drug companies to meet the White House’s demands voluntarily, but do not outline regulations or legislation in Congress to mandate Trump’s requests. Leavitt did not elaborate how Trump would retaliate if the pharmaceutical companies do not appease his demands.
The action comes after Trump signed an executive order in May addressing the “egregious imbalance” of American and foreign drug costs. The executive order similarly urged drug companies to lower costs voluntarily and threatened to import drugs from other countries or impose regulations if actions were not taken.
Sens. Josh Hawley, R-Mo., and Peter Welch, D-Vt., introduced legislation earlier this year on this issue. Their bill addresses disproportionately high drug costs in the U.S. and could require pharmaceutical companies to match their prices to other countries by law.
