High drug prices in the US have long been a painful reality for many Americans. Former President Donald Trump recently announced a game-changing plan to tackle this issue head-on, promising that Americans would soon pay no more than the *lowest price* charged for the same prescription drugs anywhere else in the world. He coined it “most favoured nations pricing,” aiming to ensure that medication costs here match the most affordable global rates.
Imagine buying your essential medicines at prices comparable to those in countries renowned for their low healthcare costs. That’s the ambitious goal. Speaking alongside key officials and pharmaceutical executives, Trump claimed that drugmakers had agreed to substantial price reductions – some even reaching a staggering 700%! The administration’s vision was clear: to make US drug prices “among the lowest in the developed world.”
How would this transformation occur? Trump indicated that tariffs might be used to encourage international price alignment. He also linked the policy to boosting domestic pharmaceutical manufacturing, aiming to expand production and create jobs within the United States.
However, this isn’t solely an American affair. The policy is expected to create significant ripples across the global pharmaceutical market. India, for example, is a powerhouse in generic medicine production and a vital supplier to the US, particularly for affordable treatments. Indian drug prices are often among the lowest globally. Any US move towards global price benchmarking is therefore closely scrutinized by Indian pharmaceutical exporters, given the immense importance of the American market to their industry. This policy could truly reshape how medicine is priced and manufactured worldwide.
Source: https://www.orissapost.com/trump-drug-price-cuts-to-hit-global-pharma-including-india/
