The Trump administration despatched letters this summer season to 17 makers of name-brand medicine pushing them to decrease costs to align them with what different international locations pay. The businesses had 60 days to «step up.»
SCOTT DETROW, HOST:
Time is up for 17 drugmakers that obtained letters from the Trump administration this summer season. The letters gave the corporate 60 days to answer the administration’s calls for to decrease their costs. NPR prescribed drugs correspondent Sydney Lupkin is right here to fill us in on what’s taking place. Hello, Sydney.
SYDNEY LUPKIN, BYLINE: Hello, Scott.
DETROW: So remind us, what does the administration need from these corporations?
LUPKIN: Yeah, the principle objective is to decrease the costs Individuals pay for name-brand medicine and put them according to what different developed international locations pay, which is usually loads much less. There was an government order pushing that concept in Could, however in August the Trump administration wasn’t glad with what it was listening to from the drug corporations, so it despatched letters to 17 of them with an inventory of calls for – decrease costs in Medicaid, for instance. Launch new medicine at costs that match what folks in different international locations are paying. Promote some medicine on to shoppers at decrease costs.
That stated, this may all be voluntary, however the letters carried a menace saying, quote, «in the event you refuse to step up, we are going to deploy each instrument in our arsenal to guard American households from continued abusive drug pricing practices.»
DETROW: So what have the businesses accomplished with this?
LUPKIN: So I reached out to all 17 corporations that received a letter. Most did not reply to me or declined to remark. Others touted adjustments in press releases, like Bristol Myers Squibb. It stated it should provide its blood thinner Eliquis and a plaque psoriasis drug on to shoppers at a reduction. It additionally says it should launch its new schizophrenia drug within the U.Ok. on the identical worth it’s within the U.S., which, by the way in which, is sort of two grand a month. So no financial savings there for Individuals. However general, it would not sound just like the Trump administration received the pledges of widespread worth reductions it hoped for. Juliette Cubanski is a Medicare drug pricing skilled on the nonpartisan analysis group KFF.
JULIETTE CUBANSKI: This administration has a behavior of form of setting deadlines and blowing previous them with out something actually taking place.
LUPKIN: She says now that the deadline is right here, the administration might need to pivot to laws or rulemaking to get what it desires.
DETROW: So what’s our sense at this second about what this implies for shoppers?
LUPKIN: It is going to take a little bit longer to determine that out. The businesses should do some issues in response to the administration’s strain, and there are just a few actions already, however they won’t translate to decrease costs at U.S. pharmacy counters. For instance, after getting its letter in August, Eli Lilly stated that it might elevate the worth of its Sort 2 diabetes drug Mounjaro within the U.Ok. And Lilly was clear in its announcement this was mainly due to the Trump administration. However that does not essentially imply the worth will go down right here within the U.S.
DETROW: Then how do tariffs match into all of this? As a result of that is been such an enormous theme of this yr.
LUPKIN: The Trump administration is attempting all types of issues on the identical time. It is pushing to get drug corporations to construct factories within the U.S. by tariffing some drug imports beginning subsequent month, and that might elevate costs. Steve Ubl, the CEO of the drug firm commerce group PhRMA, wrote that its members dedicated to spending 500 billion on infrastructure within the U.S. over the following few years. However it’s onerous to know the way the Trump administration’s actions will play out as a result of they’re taking place by way of government order and public strain. That is in contrast to laws that will get scored by the Congressional Price range Workplace. In that case, you’ll be able to see how a lot cash it should value or save taxpayers, and we simply haven’t got that right here.
DETROW: Obtained it. That’s NPR prescribed drugs correspondent Sydney Lupkin. Thanks a lot.
LUPKIN: You guess.
(SOUNDBITE OF BADBADNOTGOOD AND GHOSTFACE KILLAH SONG, «FOOD»)
Copyright © 2025 NPR. All rights reserved. Go to our web site phrases of use and permissions pages at www.npr.org for additional info.
Accuracy and availability of NPR transcripts could fluctuate. Transcript textual content could also be revised to right errors or match updates to audio. Audio on npr.org could also be edited after its authentic broadcast or publication. The authoritative file of NPR’s programming is the audio file.
