Di Michael Vadon - Opera propria, CC BY-SA 4.0,
President Donald Trump cautioned pharmaceutical executives during a private meeting that tariffs are imminent and urged them to expedite the relocation of manufacturing operations back to the United States, as reported by two individuals familiar with the discussion.
Furthermore, Trump did not indicate any intention to advocate for Congress to modify a drug pricing initiative established under President Joe Biden, which the pharmaceutical sector has been seeking to amend.
The president’s remarks imply that the pharmaceutical industry’s efforts to gain favor in the White House may prove more challenging than executives anticipated. Despite his pro-business stance, Trump experienced a tumultuous relationship with drug manufacturers during his first term, having previously accused them of “getting away with murder” regarding medication pricing.
On Thursday, Trump convened at the White House with executives, including Eli Lilly & Co. CEO David Ricks, Merck & Co. CEO Robert Davis, Pfizer Inc. CEO Albert Bourla, and Stephen Ubl, head of the industry’s largest lobbying group. The executives aimed to persuade Trump to endorse the reduction of a law permitting the federal government to negotiate specific drug prices, as well as to support measures aimed at curbing the influence of intermediaries that the industry blames for escalating out-of-pocket expenses.
Executives urged Trump to endorse a uniform duration for the exclusion of drugs from the price negotiation program. Currently, the timelines differ for complex injectable medications and lower-cost pills, a disparity that the industry contends distorts incentives for drug innovation.
According to sources familiar with the meeting, Trump did not agree to this request, expressing apprehension that altering drug pricing policies might hinder Republican efforts to advance tax reforms.
On Friday, Trump reiterated his previous assertions from his first term, claiming that the United States incurs excessive costs for prescription drugs in comparison to other nations. In remarks issued from the White House, he noted that Health and Human Services Secretary Robert F. Kennedy Jr. and Mehmet Oz, his appointee for the leadership of Medicare and Medicaid, are working towards reducing drug prices.
“I hope you concentrate significantly on the costs as well, because Americans have been taken advantage of, and this situation is unacceptable,” Trump stated to Kennedy. He further remarked that individuals in the United States pay more for identical prescription drugs than those in London, although he did not specify any particular medications.
Medicare officials announced on Friday their intention to advance to the next stage of the drug pricing negotiation program established during the Biden administration. This development indicates that the pharmaceutical industry’s attempts to alter the negotiation process have not been successful. The upcoming negotiations will focus on the pricing of Ozempic and Wegovy, two highly successful medications utilized for weight management.
Despite previous criticisms directed at the pharmaceutical sector and the appointment of Kennedy, who has promoted debunked theories regarding vaccines and other medical treatments, executives have maintained a sense of optimism regarding a potential second term for Trump.
