Trump signs executive order that calls for companies to lower drug prices

On Monday, President Trump signed an executive regulation in which the drug manufacturers were asked to voluntarily reduce prices for important medication in the USA.

However, the arrangement does not cite any obvious legal authority to create lower prices. The administration said the order to take regulatory measures in the future or to import medication from other countries if drug manufacturers do not comply with.

For the pharmaceutical industry, it was a certain victory that affected a policy that would be much more harmful to its interests.

On Sunday evening, Mr. Trump said in a social post of truth that he would link US drug prices with those in Peer countries under a “most preferred nation” price model, a policy that he unsuccessfully tried in his first term for a small series of drugs in Medicare. His executive order on Monday doesn't. Pharmaceutical stocks rose in the news on Monday morning.

Mr. Trump's executive order took place only a few hours after the Republicans of House offered a number of changes in health care that would be reduced over a decade of around 700 billion dollars by Medicaid and the Obamacare marketplaces and would not be insured an estimated 8.6 million Americans. The congress refused to include provisions in order to restrict the drug prices in this package directly.

The Executive Ordinance also asked federal authorities to investigate why European countries receive lower prices and urge them to pay more. The Trump administration has a limited influence to increase prices in Europe.