Trump deadline for drugmakers to lower prices comes due

The Trump management sent letters this summertime to 17 makers of name-brand narcotics pushing them to little prices to align them pinch what different countries pay. The companies had 60 days to "step up."

SCOTT DETROW, HOST:

Time is up for 17 drugmakers that received letters from nan Trump management this summer. The letters gave nan institution 60 days to respond to nan administration's demands to little their prices. NPR pharmaceuticals analogous Sydney Lupkin is present to capable america successful connected what's happening. Hi, Sydney.

SYDNEY LUPKIN, BYLINE: Hi, Scott.

DETROW: So punctual us, what does nan management want from these companies?

LUPKIN: Yeah, nan main extremity is to little nan prices Americans salary for name-brand narcotics and put them successful statement pinch what different developed countries pay, which is typically a batch less. There was an executive bid pushing that thought successful May, but successful August nan Trump management wasn't satisfied pinch what it was proceeding from nan supplier companies, truthful it sent letters to 17 of them pinch a database of demands - little prices successful Medicaid, for example. Launch caller narcotics astatine prices that lucifer what group successful different countries are paying. Sell immoderate narcotics straight to consumers astatine little prices.

That said, this would each beryllium voluntary, but nan letters carried a threat saying, quote, "if you garbage to measurement up, we will deploy each instrumentality successful our arsenal to protect American families from continued abusive supplier pricing practices."

DETROW: So what person nan companies done pinch this?

LUPKIN: So I reached retired to each 17 companies that sewage a letter. Most didn't respond to maine aliases declined to comment. Others touted changes successful property releases, for illustration Bristol Myers Squibb. It said it will connection its humor thinner Eliquis and a plaque psoriasis supplier straight to consumers astatine a discount. It besides says it will motorboat its caller schizophrenia supplier successful nan U.K. astatine nan aforesaid value it is successful nan U.S., which, by nan way, is almost 2 expansive a month. So nary savings location for Americans. But overall, it doesn't sound for illustration nan Trump management sewage nan pledges of wide value reductions it was hoping for. Juliette Cubanski is simply a Medicare supplier pricing master astatine nan nonpartisan investigation group KFF.

JULIETTE CUBANSKI: This management has a wont of benignant of mounting deadlines and blowing past them without thing really happening.

LUPKIN: She says now that nan deadline is here, nan management mightiness person to pivot to authorities aliases rulemaking to get what it wants.

DETROW: So what is our consciousness astatine this infinitesimal astir what this intends for consumers?

LUPKIN: It's going to return a small longer to fig that out. The companies whitethorn still do immoderate things successful consequence to nan administration's pressure, and location are a fewer actions already, but they mightiness not construe to little prices astatine U.S. drugstore counters. For example, aft getting its missive successful August, Eli Lilly said that it would raise nan value of its Type 2 glucosuria supplier Mounjaro successful nan U.K. And Lilly was clear successful its announcement this was fundamentally because of nan Trump administration. But that doesn't needfully mean nan value will spell down present successful nan U.S.

DETROW: Then really do tariffs fresh into each of this? Because that's been specified a large taxable of this year.

LUPKIN: The Trump management is trying each kinds of things astatine nan aforesaid time. It's pushing to get supplier companies to build factories successful nan U.S. by tariffing immoderate supplier imports starting adjacent month, and that could raise prices. Steve Ubl, nan CEO of nan supplier institution waste and acquisition group PhRMA, wrote that its members committed to spending 500 cardinal connected infrastructure successful nan U.S. complete nan adjacent fewer years. But it's difficult to cognize really nan Trump administration's actions will play retired because they're happening via executive bid and nationalist pressure. That's dissimilar authorities that gets scored by nan Congressional Budget Office. In that case, you tin spot really overmuch money it will costs aliases prevention taxpayers, and we conscionable don't person that here.

DETROW: Got it. That is NPR pharmaceuticals analogous Sydney Lupkin. Thank you truthful much.

LUPKIN: You bet.

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