The Trump administration sent letters this summer 17 manufacturers of drugs from names-brand, pushing them to reduce prices in order to coordinate them with the fact that other countries pay. The companies had 60 days to “step up”.
Scott Detroou, owner:
The time for 17 drug producers who received letters from the Trump administration this summer. Letters were given to the companies for 60 days to respond to the administration’s requirements to reduce their prices. NPR Pharmaceuticals correspondent Sydney Lupkin is here to fill us with what is happening. Hello Sydney.
Sydney Lupkin, Byline: Hello Scott.
Detroou: So remind us what the administration wants from these companies?
Lupkin: Yes, the main goal is the prices that Americans pay for medicines for the brand name, and put them in accordance with the fact that other developed countries pay, which is usually much less. In May, there was an order that puts forward this idea, but in August the administration of Trump was not satisfied with the fact that she heard from pharmaceutical companies, so she sent letters 17 of them with a list of requirements – for example, lower prices in Medicaid. Launch new medicines at prices that correspond to what people pay in other countries. Sell some medicines directly to consumers at lower prices.
Nevertheless, all this would be voluntary, but the letters made a threat that said: “If you refuse to rise, we will expand every instrument in our arsenal to protect American families from continuing insulting drug prices.”
Detroou: So what did the companies do with this?
Lupkin: So, I turned to all 17 companies that received a letter. Most did not answer me and did not refuse to comment. Others have advertised changes in press releases, such as Bristol Myers Squibb. It said that he would offer his blood to the Eliquis diluent and the drug for psoriasis on a plate directly to consumers at a discount. It also says that he will launch his new drug for schizophrenia in the UK at the same price in the United States, which, incidentally, is almost two grandiose per month. So there are no savings for the Americans. But in general, this is not like the fact that the Trump administration received promises from a wide decline in prices for which she hoped. Juliet Kubanski is an expert on Medicare medicines in a non -party research group KFF.
Juliet Kubanski: This administration has a habit of setting the deadlines and blowing them without anything.
Lupkin: Now she says that the deadline here, the administration may have to plunge into legislation or norm -making to get what she wants.
Detroou: So what is our time about what this means for consumers?
Lupkin: It will take a little more time to understand this. Companies can still do some things in response to the pressure of the administration, and there are already several actions, but they may not lead to a decrease in prices on American pharmacy meters. For example, after receiving his letter in August, Eli Lilly said that he would increase the price of his type 2 diabetes drugs in the UK, and Lilly was clear in his announcement that this was mainly from the Trump administration. But this does not necessarily mean that the price will pass here in the USA
Detroe: Then how are tariffs fit into all this? Because it was such a big topic of this year.
Lupkin: The Trump administration tries all kinds of things at the same time. He seeks to force pharmaceutical companies to build factories in the United States, rating with some imports of drugs starting from next month, and this can increase prices. Steve UBB, General Director of the Pharmaceutical Company trading group, wrote that its members took on the obligation to spend 500 billion on infrastructure in the United States over the next few years. But it is difficult to understand how the actions of the Trump administration will play, because they occur through an executive order and public pressure. This is not similar to the legislation that is clogged by the budget administration of the congress. In this case, you can see how much money it will cost or save taxpayers, and we simply do not have it here.
Detroou: I got it. This is the NPR Pharmaceuticals correspondent Sidney Lupkin. Thank you very much.
Lupkin: We argue.
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