White House Press Secretary Karoline Leavitt announced Thursday that President Trump had sent 17 letters to major pharmaceutical CEOs, demanding significant drug price reductions within 60 days. In a letter to Eli Lilly CEO David Ricks, Trump vowed to end what he called “global freeloading” and warned that his administration would use “every tool” at its disposal if companies failed to act. The letters referenced a May executive order aimed at cutting prescription drug prices by 30% to 80%, a directive that also required HHS to set price targets. Trump said subsequent discussions with drugmakers fell short, accusing them of offering proposals that preserved the status quo while seeking industry-friendly policy changes.
Trump’s letters demanded that companies extend “most favored nation” pricing to Medicaid, apply it to newly launched drugs, return foreign revenue gains to American consumers, and permit direct purchasing at those rates. He insisted that only immediate relief for U.S. families would be acceptable. The May order also outlined potential penalties for noncompliant manufacturers, including expanded drug importation, reviews of U.S. exports, and possible FDA action against drugs deemed unsafe or improperly marketed.
Industry leaders warned that Trump’s demands could harm pharmaceutical research and development at a critical moment for global competition. Experts also noted that Trump lacks the legal authority to mandate most favored nation pricing, meaning the administration’s strategy largely hinges on public pressure rather than enforceable requirements.