① The President of the USA, Trump, will sign an executive order on Monday aimed at reducing the prices of USA prescription drugs and pharmaceuticals by 30% to 80% immediately; ② This executive order will implement the "most-favored-nation policy," aligning the prices paid for medications in the USA with those in the lowest-priced countries in the world; ③ Trump described this executive order as "one of the most significant executive orders in American history," which is expected to save hundreds of billions of dollars.
On May 12, according to China Finance News (editor Liu Rui), on Sunday Eastern Time, President Trump stated that he would sign an executive order on Monday to immediately reduce the prices of prescription drugs and pharmaceuticals in the USA by 30% to 80%.
As the news broke, the stock prices of companies in the Innovative Drugs concept in the A-share market collectively corrected in early trading. As of the time of writing, Maiwei Bio fell over 12%, BEIGENE fell nearly 8%, Shenzhen Salubris Pharmaceuticals fell over 5%, while Yifang Bio, Staidson, Beijing Hotgen Biotech Co.,Ltd, Baili Tianheng, and INNOCARE also experienced significant declines.
Is Trump about to sign a significant executive order again?
On Sunday Eastern Time, President Trump complained on his self-operated social platform Truth Social that the USA pays more for the same prescription drugs than other developed countries.
Trump stated that he will implement a "most-favored-nation policy," aligning the prices paid for medications in the USA with those in the lowest-priced countries in the world.
Trump wrote, "For years, the world has been puzzled about why the prices of prescription drugs and pharmaceuticals in the USA are so much higher than in any other country, and sometimes even for the same product produced by the same company in the same lab or factory, the price in the USA can be 5 to 10 times higher?" He noted, "This issue has always been difficult to explain and extremely embarrassing, because in fact, there is no correct or justifiable answer."
"Pharmaceutical companies have been saying for years that this is due to R&D costs, and all those costs have, in the past, and will unnecessarily, be entirely borne by the 'fools' in America. Campaign donations can do miracles, but not for me, nor for the Republican Party."
Our country will ultimately be treated fairly, and our citizens' Medical expenses will be reduced by an unprecedented amount. Furthermore, most importantly, the USA will save trillions of dollars,” Trump wrote in the Post.
Trump stated that he would sign the executive order at 9 AM Eastern Time on Monday (9 PM Peking Time). He called the executive order "one of the most important executive orders in American history."
Prescription and Pharmaceutical prices will almost immediately drop by 30% to 80%. They will rise worldwide to balance and for the first time in many years bring fairness to the USA!” Trump added.
Last month, Trump had already signed another executive order to standardize the payment for Medicare prescription drugs, including prescriptions for cancer patients, regardless of where the patient receives treatment. The White House stated at that time that the order could reduce the price of patients' medicines by up to 60%.
In recent years, Pharmaceutical prices in the USA have soared significantly. According to the U.S. Department of Health and Human Services, from January 2022 to January 2023, the price of prescription drugs rose by over 15%, with an average price of $590 per prescription.
