The Health and Human Services (HHS) department on Tuesday said under President Donald Trump’s most-favored-nation drug pricing policy, it will require drugmakers to lower prices of branded medicines to the level of those in OECD countries.

The announcement comes a week after Trump signed an executive order giving the HHS six months to negotiate with drugmakers to bring down the U.S. drug prices to the levels in other developed nations. If they fail to comply, the agency will impose a rulemaking plan to force them to do so.

“We expect pharmaceutical manufacturers to fulfill their commitment to lower prices for American patients, or we will take action to ensure they do,” HHS Secretary Robert F. Kennedy Jr. said in a statement.

According to the HHS, the MFN policy will target branded medications with no competition from biosimilars or generics to bring down their prices to those found in a group of economically developed peer nations.

The MFN price will be the lowest in an OECD country with a per capita GDP of 60% or higher compared to the U.S. GDP per capita.

“These targets will drastically bring down U.S. drug prices, which are often three to five times higher than prices abroad, while preserving innovation by simply ensuring that Americans bear no greater burden than patients receiving the same drugs in other countries,” the HHS said.

The Health and Human Services (HHS) department on Tuesday said under President Donald Trump’s most-favored-nation drug pricing policy, it will require drugmakers to lower prices of branded medicines to the level of those in OECD countries.

The announcement comes a week after Trump signed an executive order giving the HHS six months to negotiate with drugmakers to bring down the U.S. drug prices to the levels in other developed nations. If they fail to comply, the agency will impose a rulemaking plan to force them to do so.

“We expect pharmaceutical manufacturers to fulfill their commitment to lower prices for American patients, or we will take action to ensure they do,” HHS Secretary Robert F. Kennedy Jr. said in a statement.

According to the HHS, the MFN policy will target branded medications with no competition from biosimilars or generics to bring down their prices to those found in a group of economically developed peer nations.

The MFN price will be the lowest in an OECD country with a per capita GDP of 60% or higher compared to the U.S. GDP per capita.

“These targets will drastically bring down U.S. drug prices, which are often three to five times higher than prices abroad, while preserving innovation by simply ensuring that Americans bear no greater burden than patients receiving the same drugs in other countries,” the HHS said.

The Health and Human Services (HHS) department on Tuesday said under President Donald Trump’s most-favored-nation drug pricing policy, it will require drugmakers to lower prices of branded medicines to the level of those in OECD countries.

The announcement comes a week after Trump signed an executive order giving the HHS six months to negotiate with drugmakers to bring down the U.S. drug prices to the levels in other developed nations. If they fail to comply, the agency will impose a rulemaking plan to force them to do so.

“We expect pharmaceutical manufacturers to fulfill their commitment to lower prices for American patients, or we will take action to ensure they do,” HHS Secretary Robert F. Kennedy Jr. said in a statement.

According to the HHS, the MFN policy will target branded medications with no competition from biosimilars or generics to bring down their prices to those found in a group of economically developed peer nations.

The MFN price will be the lowest in an OECD country with a per capita GDP of 60% or higher compared to the U.S. GDP per capita.

“These targets will drastically bring down U.S. drug prices, which are often three to five times higher than prices abroad, while preserving innovation by simply ensuring that Americans bear no greater burden than patients receiving the same drugs in other countries,” the HHS said.