US President Donald Trump has sent letters to 17 major pharmaceutical firms, demanding “binding commitments” to lower their drug prices stateside by September 29. The companies must provide “most favored nation” (MFN) prices to all Medicaid patients and stop offering medicines at better prices in other developed markets.
The move is seen as a fresh ultimatum, with the White House warning that if firms refuse to comply, the government will take action to protect American families from “abusive drug pricing practices”. The companies include AbbVie, Amgen, AstraZeneca, and Johnson & Johnson, among others.
Healthcare stocks tumbled on Friday as investors digested Trump’s amended tariffs. Shares of Novo Nordisk dropped 5% after the company was informed it must comply with MFN prices for its Wegovy treatment.
The pharmaceutical industry has long been criticized for high drug prices in the US, which is seen as one of the most expensive healthcare markets in the world. The move aims to address this issue, with Trump aiming to reduce US prices by 80% and implementing an executive order to tie some medicine prices to lower international levels under the MFN policy.
Many companies have expressed support for Trump’s efforts, with AstraZeneca CEO Pascal Soriot saying that “price equalization should happen”. Novo Nordisk has also announced plans to invest $50 billion in US manufacturing, following similar moves by other pharmaceutical firms.
Source: https://www.cnbc.com/2025/08/01/trumps-drug-price-ultimatum-sets-pharma-firms-scrambling.html