President Donald Trump said Monday that U.S. healthcare companies “won’t be affected very much” by his new executive order aimed at slashing prescription drug prices. “They’ll make the same money,” Trump told reporters at the White House, adding that the plan was “just a redistribution of wealth.” The order introduces a “most favored nation” policy that ties U.S. drug prices to the lowest prices paid globally.
Trump argued Americans have been unfairly subsidizing cheaper healthcare in Europe, where he said prices are significantly lower. “Basically, we are going to equalize it,” he said. Trump noted that while the U.S. makes up just 4% of the global population, pharmaceutical companies earn two-thirds of their profits from American patients.
Before the press conference, U.S. drugmaker shares fell 2% to 3% on Monday. Trump insisted the industry’s topline would remain intact, with foreign governments now expected to pay more for the same medications.
