Trump’s Executive Order Aims to Lower Drug Prices Through International Benchmarking

President Trump signed an executive order on Monday that he stated would lower drug prices in the U.S. by basing the cost of certain medicines on their prices in other countries. Trump directed the Department of Health and Human Services to establish price targets within 30 days and mandated drug manufacturers to offer U.S. patients the lowest price paid for a drug in a comparable country. The executive order outlined potential consequences if drug manufacturers fail to lower prices, including increased drug imports and FDA modifications or revocations of approvals for drugs deemed “unsafe, ineffective, or improperly marketed.” However, the extent of Trump’s authority to enforce specific prices, particularly in the private market, remains unclear. The timeline for when—or if—Americans will experience lower drug prices is also unknown.