Trump threatens drug giants with crackdown over prices

Donald Trump has threatened to use “every tool in our arsenal” to crack down on pharmaceutical giants if they fail to cut drug prices for Americans within 60 days.

The president wrote to executives at 17 companies on Thursday, demanding they match their US prices for prescription drugs with the lowest price offered in other developed nations.

Current prices are an “unacceptable burden” on US families, Trump said, claiming they could be up to three times higher than in other countries.

After returning to the White House earlier this year and pledging to bring down drug prices, the president claimed that “most proposals” from the pharmaceutical industry amounted to “more of the same”, accusing firms of seeking to shift blame and requesting policies that would pave the way for handouts worths billions of dollars for the sector.

“Make no mistake: a collaborative effort towards achieving global pricing parity would be the most effective path for companies, the government, and American patients,” Trump wrote. “But if you refuse to step up we will deploy every tool in our arsenal to protect American families from continued abusive drug pricing practices.

“Americans are demanding lower drug prices, and they need them today.”

The bosses of Pfizer, AstraZeneca and GSK were among those who received the letters. Pfizer and GSK did not respond to requests for comment. AstraZeneca declined to comment.

Shares in Pfizer slipped 2%, AstraZeneca fell 3.8% and GSK dropped 3.9% during afternoon trading in New York.

At the heart of of Trump’s proposal is a status known as “Most Favored Nation”, through which he wants to bind the cost of medications sold in the US to the lowest prices paid elsewhere.

The White House is demanding that pharmaceutical companies extend this to drugs used by older people through the government-backed Medicaid health program, as well as new drugs.