Trump to sign executive order to cut drug prices by 30% to 80%
May 12, 2025
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According to local media such as CNN on the 11th (local time), President Trump will sign one of the most significant executive orders in U.S. history at 9 a.m. on the 12th. Prescription drug and drug prices will be cut almost immediately by 30% to 80%" to establish a most favored nation policy that will ensure the United States pays the same price as the countries that pay the lowest drug prices in the world" he said.
The executive order is likely to be applied to health insurance Medicare, which covers 70 million people, and only to some drugs, such as anticancer drugs and other injections, but the amount of spending the federal government can reduce is expected to be significant.
Earlier, President Trump signed an executive order in 2020, during his first term in office, calling for a reduction in drug prices, but it was canceled due to opposition from the pharmaceutical industry and lawsuits against the procedure. Again, a sharp conflict with the industry is expected.
The pharmaceutical industry is concerned that such a policy may cut drug prices in the United States, but it will have a negative impact on new drug development and patient accessibility. This is based on the argument that the high price of drugs in the United States is the driving force behind accelerating innovation and allowing patients to access new drugs quickly. In particular, global pharmaceutical companies, which rely heavily on the U.S. market, expect the policy to seriously hurt their profitability.
This article was translated by Naver AI translator.
