Negotiations with drugmakers to lower pharmaceutical prices in the U.S. under President Donald Trump’s Most Favored Nation policy have reached an advanced stage, Health and Human Services Secretary Robert F. Kennedy Jr. said on Tuesday.
In May, Trump signed an executive order directing the Department of Health and Human Services to implement the MFN policy, under which drugmakers are required to lower prices of brand-name drugs to the level of other developed nations.
During a cabinet meeting chaired by Trump at the White House on Tuesday, RFK Jr. stated that “we are deep into MFN negotiations with 14 companies,” and Commerce Secretary Howard Lutnick has also joined the efforts.
In response, Lutnick said that the MFN policy and an ongoing Section 232 national security investigation focused on the impact of pharma and related imports will provide the Trump administration with adequate tools to lower drug prices. “I’m supporting Bobby as he executes his plan,” Lutnick added.
Last month, Trump sent letters to the CEOs of 17 leading drugmakers, including Eli Lilly (NYSE:LLY), Pfizer (NYSE:PFE), Bristol Myers (NYSE:BMY) and Merck (NYSE:MRK), requiring them to follow the MFN policies within 60 days or face consequences.