Trump Pressures Pharmaceutical Companies to Lower Drug Prices with 17 Letters

U.S. President Donald Trump sent 17 letters to pharmaceutical companies' CEOs, threatening to take action if they do not lower drug prices within 60 days. The letters were sent after Trump signed an executive order in May to reinstate the "most favored nation" plan, which seeks to reduce drug prices by linking them to lower prices in other developed countries. Trump warned that if the companies refuse to comply, he will deploy every tool in his arsenal to protect American families from abusive drug pricing practices.

Key Takeaways:

• Trump sent 17 letters to pharmaceutical companies' CEOs, including Eli Lilly, Pfizer, and Merck, to pressure them to lower drug prices within 60 days.
• The letters were sent in response to Trump's executive order in May to reinstate the "most favored nation" plan, which aims to reduce drug prices by linking them to lower prices in other developed countries.
• Trump warned that if the companies refuse to comply, he will deploy every tool in his arsenal to protect American families from abusive drug pricing practices.
• Brand-name drugs in the United States are up to three times more expensive on average than anywhere else for the identical medicines.
• Shares of major drugmakers fell significantly after the announcement, with Eli Lilly and Pfizer dropping over 2 percent, and Merck's shares falling more than 4 percent.
• The "most favored nation" plan seeks to reduce drug prices by using a global price index to determine the price of certain medications in the United States.
• Trump accused pharmaceutical companies of providing a "free ride" to European and other developed nations, and claimed that his administration's plan will provide American families with immediate relief from inflated drug prices.

Statistics:

• 17: The number of letters sent to pharmaceutical companies' CEOs by Trump.
• 60: The number of days within which the pharmaceutical companies are pressured to lower drug prices.
• 3: The average multiplier by which brand-name drugs in the United States are more expensive than anywhere else for identical medicines.
• 2: The percentage by which Eli Lilly and Pfizer's shares dropped after the announcement.
• 4: The percentage by which Merck's shares fell after the announcement.

Sources:

• Xinhua News Agency, July 31, 2025
• COMTEX, July 31, 2025
• Truth Social, posts from President Donald Trump