"I expect your immediate action": Trump to Novartis CEO on drug pricing

Washington [US], August 1 (ANI): US President Donald Trump on Thursday (local time) posted on Truth Social a letter he sent to Novartis CEO Vasant Narasimhan, directing the company to comply with his Executive Order on lowering drug prices for Americans or face consequences.
https://truthsocial.com/@realDonaldTrump/114949068624952696
On July 31, in a letter addressed from the White House, Trump said that on May 12, he had signed an Executive Order titled Delivering Most Favored Nation Prescription Drug Pricing to American Patients "to stop global freeloading and guarantee that Americans pay the same prices enjoyed by other developed nations."
He said that "right now, brand name drug prices in the United States are up to three times higher on average than elsewhere for the identical medicines," and that "this unacceptable burden on hardworking American families ends with my Administration."
Trump said most proposals his Administration had received to resolve the pricing issue promised more of the same, shifting blame and requesting policy changes that would result in billions of dollars in handouts to the industry. He made it clear that the only thing he would accept going forward from drug manufacturers is a commitment that provides American families immediate relief from the vastly inflated drug prices and an end to the free ride of American innovation by European and other developed nations.
"Accordingly, I am calling on Novartis and every manufacturer doing business in our great country to take the following actions within the next 60 days," he wrote.
Trump directed Novartis to take the following actions within the next 60 days. He asked the company to extend Most Favored Nation (MFN) pricing to Medicaid by providing the full portfolio of existing drugs at MFN rates for every single Medicaid patient.
He also called on Novartis to guarantee MFN pricing for newly launched drugs. This would require the company to contract with the United States to guarantee that Medicaid, Medicare, and commercial payers receive MFN prices on all new medicines both upon launch and thereafter.
Further, Trump asked Novartis to return inflated revenues abroad to American patients and taxpayers. He noted that domestic MFN pricing alone will not benefit all manufacturers, nor stop abusive pricing. Therefore, all manufacturers, including Novartis, must transfer a share of foreign profits back to American patients and taxpayers. He said this could be achieved through direct rebates, price reductions, or reinvestment in US operations.
He added that the Department of Health and Human Services (HHS), Department of the Treasury (DOT), and Department of Justice (DOJ) will ensure enforcement of the Executive Order and he expected full compliance from Novartis.
Trump confirmed that his advisors Secretary Kennedy and Administrator Oz stand ready to implement these terms. "I expect your immediate action," he wrote.
"My Administration is committed to using every tool available to put American patients first. Years of promises have produced no change for long, it is time they are held to their share. I look forward to your binding commitment on or before September 29, 2025. Any delay beyond this date risks federal action, including termination of contracts and a referral to DOJ for immediate attention in the vital national priority," he warned. (ANI)