Trump issues 60-day ultimatum for big pharma to lower drug prices

President Donald Trump sent letters to 17 leading pharmaceutical manufacturers, including Eli Lilly (NYSE:LLY), Pfizer (NYSE:PFE), and Merck (NYSE:MRK), on Thursday, demanding that they take steps to lower drug prices in the U.S. within 60 days in line with his most-favored-nation drug pricing policy.

The letters relate to a Trump executive order signed in May that directed the Department of Health and Human Services to implement the policy under which drugmakers are required to lower prices of brand-name drugs to the level of those in OECD countries.

In addition to Eli Lilly (NYSE:LLY), Pfizer (NYSE:PFE), and Merck (NYSE:MRK), GSK (GSKJ), J&J (NYSE:JNJ), Regeneron (REGN), and Novo Nordisk (NVO) (OTCPK:NONOF) are also expected to receive Trump’s letters.

Quoting a letter sent to Lilly (NYSE:LLY) CEO Dave Ricks, White House Press Secretary Karoline Leavitt said that Trump has demanded that the company and its rivals take four actions, including applying MFN pricing to Medicaid and providing for direct purchases at MFN pricing.

“If you refuse to step up, we will deploy every tool in our arsenal to protect American families from continued abusive drug pricing practices.” Trump wrote. “I look forward to your binding commitment to each of these goals by Sept. 29, 2025, and my team stands ready to assist with implementation questions.”