President Donald Trump just dropped a bombshell on Big Pharma, demanding a seismic shift in how Americans pay for prescription drugs. On Thursday, he issued a bold ultimatum to major pharmaceutical companies, pushing for lower prices within the next 60 days. This isn’t just talk—it’s a direct challenge to an industry long criticized for sky-high costs.
According to CNBC, Trump sent personalized letters to 17 drugmakers, including heavyweights like Pfizer, Merck, and Johnson & Johnson, urging immediate action to curb U.S. drug prices by September 29.
Earlier this year, in May, Trump revived the “most favored nation” policy through an executive order, aiming to tie U.S. drug costs to the lower prices seen in other developed nations. This policy is a cornerstone of his broader campaign to tackle prescription costs, which, according to the Rand Corp., are often two to three times higher in the U.S. than in comparable countries—and in some cases, up to 10 times more.
Trump’s letters outlined specific goals, including a call for drugmakers to offer their full range of existing medicines at the lowest prices available in other developed nations to every Medicaid patient. He also pressed companies to ensure that Medicare, Medicaid, and commercial payers get these same favorable prices on all new drugs at launch and beyond.
Adding to the pressure, Trump urged these firms to negotiate more aggressively with what he called “foreign freeloading nations.” He argued that increased revenues from abroad should be brought back to the U.S. to reduce costs for American patients and taxpayers through formal agreements.
Perhaps most striking, Trump pushed for a direct-to-consumer model, asking companies to bypass middlemen and sell medicines straight to Americans at the same discounted rates offered to third-party payers. This could be a game-changer for affordability if adopted widely.
The market didn’t take this news lightly—shares of several drugmakers plummeted on Thursday after Trump’s announcement. Bristol Myers Squibb and Novo Nordisk saw drops of nearly 5%, while GSK and Merck fell over 3%, and Sanofi took a brutal hit, tumbling more than 8%.
Some companies are already adjusting—AstraZeneca recently floated proposals for price reductions on certain drugs, which the Trump administration is reviewing. Meanwhile, firms like Eli Lilly, Novo Nordisk, Pfizer, and Bristol Myers Squibb have started selling some drugs directly to patients, a move driven by growing affordability struggles in the U.S.
Trump didn’t hold back on the consequences, warning he’d use every tool available to protect American families from what he called abusive pricing if companies resist. “American families [need] immediate relief,” he insisted in his letters, rejecting industry proposals that he said merely shift blame and seek handouts.
The pharmaceutical industry isn’t rolling over quietly—Alex Schriver of PhRMA warned that adopting foreign price controls could weaken U.S. leadership and harm patients and workers alike. Pfizer, however, struck a more conciliatory tone, noting that its talks with Trump’s team and Congress have been productive.
Looming on the horizon are planned tariffs on imported pharmaceuticals, a policy Trump has announced that’s got drugmakers on edge as they brace for potential cost increases. This adds another layer of complexity to an already tense standoff.
For investors and everyday Americans, this saga raises big questions about the future of healthcare costs. Could this be a turning point? If you’re holding pharma stocks, keep a close eye on how these companies respond in the coming weeks.
Trump framed collaboration as the smartest path forward, suggesting that working together on price reductions would benefit companies, the government, and patients. But with a 60-day clock ticking, the pressure is on for tangible results.
For wealth-builders and frugal families, this could signal a rare opportunity—if prices drop, it’s a direct win for your budget. Consider how much you spend on prescriptions and whether direct-to-consumer models might save you cash. Stay informed, because policy shifts like this don’t just affect Wall Street—they hit your wallet, too.