President Trump Issues Ultimatum to 17 Pharma Giants to Slash Drug Prices Within 60 Days

President Trump has issued a 60-day ultimatum to 17 major pharmaceutical companies to lower drug prices in the US or face severe consequences. Trump has called for global benchmark pricing, middleman-free drug sales, and adoption of most-favored-nation pricing. If the companies do not comply, Trump will use "every tool in our arsenal" to safeguard American families from "continued abusive drug pricing practices." The deadline for the companies to commit to Trump's goals is September 29.

President Donald Trump has issued a 60-day ultimatum to 17 major pharmaceutical companies, demanding they lower drug prices in the United States or face severe consequences. The deadline for compliance is September 29. Trump's directive, part of an ongoing effort to reduce prescription drug costs, includes global benchmark pricing, middleman-free drug sales, and adoption of most-favored-nation (MFN) pricing. If the companies do not comply, Trump has threatened to use "every tool in our arsenal" to protect American families from "continued abusive drug pricing practices" [1].

The directive stems from an executive order signed by Trump in May, which required drugmakers to start offering US patients the lower prices available in other countries or face potential consequences. Prices for some brand-name drugs in the US are more than three times those in other developed nations, according to the administration. The executive order also directed the Department of Health and Human Services to come up with price targets within 30 days [1].

Trump's letters to the CEOs of pharmaceutical companies such as Eli Lilly, Sanofi, Regeneron, Merck & Co, Johnson & Johnson, and AstraZeneca, among others, outlined specific demands. He called for the companies to extend MFN pricing to all drugs provided to Medicaid enrollees and to guarantee such pricing for new drugs. Additionally, Trump wants the companies to return revenue from operations abroad to lower prices in America through an explicit agreement with the United States. He also ordered the manufacturers to participate in programs to sell certain drugs directly to consumers or businesses at MFN prices [1].

The Pharmaceutical Research and Manufacturers of America, the industry's main trade association, did not immediately return a request for comment. Stock prices for several companies that received the letters, including Eli Lilly, Merck, Johnson & Johnson, GSK, and Amgen, slipped between 1% to 4% in mid-afternoon trading on Thursday, July 31, 2025 [1].

Analysts and drug pricing experts have expressed skepticism about the likelihood of the pharmaceutical companies complying with Trump's demands. Stacie Dusetzina, professor of health policy at Nashville's Vanderbilt University, said she might expect the companies to try to determine if any of their current products might be made available via direct sales at a lower price than currently available in the US [1].

The potential impact of Trump's directive on the pharmaceutical industry and the broader economy remains uncertain. While some companies have expressed willingness to work with the Trump administration, others may resist the demands, potentially leading to legal challenges or other forms of pushback. The directive also raises questions about the authority of the president to demand certain prices, particularly in the private market and without Congress' involvement [1].

References:
[1] https://economictimes.indiatimes.com/news/international/global-trends/trump-pressures-17-pharma-ceos-to-cut-us-drug-prices/articleshow/123035686.cms