President Trump has been campaigning on an executive order to lower prescription drug prices in the US. However, no such order has yet been issued. The proposed directive aims to lower drug prices through a variety of mechanisms including the ‘favored nations clause’ that would link US drug prices to the prices paid in Europe and other developed countries.
Although Trump has implied that the ‘favored nations’ order would lower prices for all drugs, only a small proportion would actually be affected. Not surprisingly, the pharmaceutical industry opposes the policy. Nicole Longo, a spokeswoman for PhRMA, the largest industry trade group states, “The ‘most favored nation’ executive order is an irresponsible and unworkable policy that will give foreign politicians a say in how America provides access to treatments and cures for seniors and people struggling with devastating diseases.” Read more here.