WASHINGTON (dpa-AFX) - President Donald Trump has sent letters to leading pharmaceutical manufacturers outlining the steps they must take to bring down the prices of prescription drugs in the United States to match the lowest price offered in other developed nation, known as the most-favored-nation, or MFN, price.
Trump called on manufacturers to provide MFN prices to every single Medicaid patient.
In the letter, the President urged manufacturers to stipulate that they will not offer other developed nations better prices for new drugs than prices offered in the United States.
Pharmaceutical manufacturers will be provided with an avenue to cut out middlemen and sell medicines directly to patients, provided they do so at a price no higher than the best price available in developed nations.
Trump promised to using trade policy to support manufacturers in raising prices internationally provided that increased revenues abroad are reinvested directly into lowering prices for American patients and taxpayers.
In the letters, Trump warned manufacturers that if they 'refuse to step up,' the federal government 'will deploy every tool in our arsenal to protect American families from continued abusive drug pricing practices.'
Letters were sent to AbbVie, Amgen, AstraZeneca, Boehringer Ingelheim, Bristol Myers Squibb, Eli Lilly, EMD Serono, Genentech, Gilead, GSK, Johnson & Johnson, Merck, Novartis, Novo Nordisk, Pfizer, Regeneron, and Sanofi.
President Trump is taking decisive action to rebalance a system that allows pharmaceutical manufacturers to offer low prices to other wealthy nations while charging Americans significantly higher prices.
According to recent data, the prices Americans pay for brand-name drugs are more than three times the price other Organization for Economic Cooperation and Development nations pay, even after accounting for discounts manufacturers provide in the U.S.
The United States has less than five percent of the world's population, yet roughly 75 percent of global pharmaceutical profits come from American taxpayers, the White House said.
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