Trump Pressures 17 Pharma CEOs to Match US Drug Prices with Global Lows September 29 Deadline Set

President Trump has issued a direct ultimatum to the heads of 17 major pharmaceutical companies, demanding that US drug prices be slashed to the lowest levels paid by other developed nations. In letters sent out this week, Trump called for “most-favored-nation” pricing for all Medicaid patients and newly launched medicines, warning that failure to comply would trigger aggressive government action—including rulemaking and possible drug importation.

The executive order signed in May requires drugmakers to offer prices matching those found in OECD countries, or risk further intervention. Trump also demanded that excess overseas profits gained by raising prices elsewhere be redirected to benefit American patients and taxpayers.

Among the firms addressed are Eli Lilly, Sanofi, Merck, Johnson & Johnson, AstraZeneca, and Regeneron. Drugmakers were given until September 29 to submit binding commitments to these terms. Trump’s message was clear: “If you refuse to step up, we will deploy every tool in our arsenal to protect Americans from abusive drug pricing practices.”

The move rattled markets, with shares of Pfizer, Eli Lilly, and Gilead Sciences each dropping about 2% and the NYSE Arca Pharmaceutical Index falling 3% in a single day. Analysts remain cautious, noting that pharmaceutical companies are unlikely to fully comply, citing concerns about innovation and global pricing structures.

Despite industry pushback, some firms have signaled willingness to discuss affordability. US patients continue to pay nearly three times more for prescriptions than those in other wealthy countries, fueling political urgency for reform.