Trump administration reportedly seeks higher ex-US drug prices in pursuit of MFN policy

The U.S. government has been discussing with drugmakers how to raise overseas drug prices as President Donald Trump seeks to implement his Most Favored Nation policy, which attempts to lower U.S. drug prices to the level of other wealthy nations, Reuters reported.

Citing a White House official, the news agency reported that the administration even offered to support drugmakers in their negotiations with overseas governments if they follow the MFN policy, which Trump reiterated in letters sent to 17 leading pharma executives last week.

The CEOs of major U.S. pharmaceutical companies Gilead (GILD), Bristol Myers (BMY), J&J (NYSE:JNJ), Regeneron (REGN), Amgen (AMGN), and AbbVie (ABBV) received Trump’s letters along with Lilly (NYSE:LLY), Pfizer (NYSE:PFE), and Merck (NYSE:MRK).

The letters also targeted European drugmakers, including Sanofi (SNY), GSK (GSK), AstraZeneca (AZN), Novo Nordisk (NVO), Roche (OTCQX:RHHBY), and Novartis (NVS).

Two sources said that the Trump Administration has sought ideas from some pharma companies on how to raise overseas drug prices, as multiple meetings took place over the last several months aiming to address the pricing issue without a concurrent decrease in R&D spending.

The White House official added that both parties requested each other’s ideas during the interactions, which were described as collaborative.

Plans to increase drug prices in Europe have taken center stage during the Trump administration’s talks with the industry, a senior European pharma executive said, adding that it has already discussed the issue with the region’s governments.

A second executive noted that White House officials have continuously met his company representatives and discussed ways to raise overseas drug prices.

“There’s a big push from the administration to drive up prices outside the U.S.,” added the executive, who was not authorized to comment about the matter.