Trump Management Announces Drug Price Cuts, Sparks Industry Debate
WASHINGTON D.C. – In a move poised to reshape the pharmaceutical landscape, the Trump administration announced measures Friday to considerably lower the cost of prescription drugs, specifically targeting medications like semaglutide used for chronic conditions.The initiative aims to broaden access to treatment for millions, addressing current U.S. prices that range from $500 to $1,000 – and can reach $1,350 – according to reports from Reuters and CNBC, respectively. These costs far exceed prices paid in other countries.
The declaration was hailed as “transformative” by the American Medical Association in its fight against chronic diseases, Reuters reported.
To offset potential losses for pharmaceutical companies,U.S. officials revealed temporary exemptions from certain customs duties for Eli Lilly and Novo Nordisk. These exemptions are slated to last three years. The Guardian reported in February that Novo nordisk expressed confidence in navigating potential changes, with CEO Lars Fruergaard Jørgensen stating, “We are not immune, but we are confident in our company’s ability to meet the demands of the new U.S. administration.” The Danish company will now be able to export its products to the U.S. without paying customs duties, a benefit not extended to all competitors. The exemption for Eli Lilly could prove especially valuable for importing components not produced domestically in the United States. Details regarding the exact terms of the exemption are still forthcoming.
Alongside the price reductions, Novo Nordisk committed to an additional $10 billion investment in the United States, while Eli Lilly had already announced plans to construct four new industrial sites representing a $27 billion investment. Though, Secretary of Health and human Services Robert F. Kennedy Jr. estimates the price reduction will cost the American public $125 million by next year.
The news wasn’t universally welcomed by investors, with Novo Nordisk shares falling 3% on the Copenhagen Stock Exchange Friday.
Eli Lilly CEO David Ricks described the agreement as a “pivotal moment for American health policy” in a press release. Novo Nordisk CEO Mike Doustdar added that the announcement “will allow more U.S. patients to access semaglutide medications at a lower cost.”
The long-term impact of these measures on both patient access and the pharmaceutical industry remains to be seen, sparking debate over whether this represents a true victory for healthcare affordability or a calculated trade-off with notable corporate implications.
