Caroline Leavitt, the White House spokesperson, is shown holding a letter from U.S. President Donald Trump to pharmaceutical companies during a regular briefing to reporters on the 21st (local time). ⓒ AFP=News1
(Seoul=News1) Reporter Kwon Young-mi – On the 31st (local time), U.S. President Donald Trump warned major global pharmaceutical companies, including Johnson & Johnson and AstraZeneca, that they would face penalties if they did not lower drug prices.
In a letter sent to 17 pharmaceutical companies posted on the Truth Social platform, he stated that the U.S. pays three times the world average for drug prices, and instructed them to take measures within 60 days to expand the Most-Favored-Nation (MFN) pricing to Medicaid for existing drugs and apply it to new drugs.
He also urged negotiations to be strengthened with foreign countries that are benefiting without contributing, to return the profits earned overseas to Americans, and to participate in a system where prescription drugs are directly supplied to individual consumers or corporations.
President Trump warned, “Make no mistake,” stating that the collective effort to achieve global equitable drug pricing is the most efficient path, and said, “If you do not take action, we will use every tool at our disposal to protect American households from continued abusive drug pricing practices.”
On April 15, President Trump initially announced an executive order indicating his intention to lower drug prices, and about a month later, issued an executive order including the MFN pricing policy.
Trump believes that while the U.S. bears the majority of the costs for new drug development, other countries control drug prices at the state level, purchasing them at lower costs, essentially free-riding. Unlike Europe and other countries, the U.S. relies on a private insurance system, resulting in much higher drug prices.