"I just signed a new regulation to cut drug prices!" The president wrote on Twitter. “My order for the Most Favored Nation will ensure that our country gets the same low price that Big Pharma offers other countries. The days of global freeriding at America's expense are over … "
Pharmaceutical manufacturers firmly reject the implementing regulation.
"The government has adopted the most-favored-nation policy – an irresponsible and unworkable policy that gives foreign governments a say in providing access to treatment and remedies for the elderly and people with devastating diseases," said Stephen J. Ubl. the managing director of PhRMA, the largest trading group in the industry.
"What's worse," he added, "is that they are now expanding policies to include drugs in both Medicare Part B and Part D, an overreach that continues to threaten America's innovation leadership and drug access for tens Millions of seniors at risk. " . ”
BIO, the trading group for the biotech industry, was also outraged.
"With scientists and researchers at America's biopharmaceutical companies working around the clock to fight a deadly pandemic, it is just amazing that the Trump administration's threat to import foreign price controls and the inevitable delays in innovation that will follow would drive forward, "said Dr. Michelle McMurry-Heath, the group's executive director, said in a statement.
Industry opposition to international index prices is shared by many Republicans in Congress who say the adoption of drug prices from government-set countries is effectively importing socialism.
In an interview last month, a Republican strategist, Joel White, called it "really bad policy" because it was "importing price controls from other countries" and "misdirected" because it targeted drugs used in doctors' offices or hospitals were administered.
Sunday's guideline emerged from Mr Trump's announcement that at the signing ceremony in July, he would issue four executive orders, all of which are aimed at bringing down drug prices in various ways. The first three were released immediately but require the Department of Health and Human Services to go through a lengthy regulatory process before they affect drug prices.
At the time, Mr. Trump described the fourth order, which he eventually published, then revoked and replaced with the extended order on Sunday, as "the grandfather of all".
Katie Thomas contributed to the coverage.