Pharmaceutical industry: Trump wants cheaper medication for USA – pressure on Europe

With pressure on pharmaceutical companies and foreign governments, US President Donald Trump wants to reduce the high pharmaceutical prices in the United States. Especially in sight: Europe. “We subsidize the health care of others,” said the Republican when signing a corresponding decree in the White House. The people in the United States had paid far too much for years.

Whether Trump’s measures actually have an effect is open – especially since political and legal resistance can be expected. The Republican had already tried to tackle the high prices during his first term, but had failed at the time.

Trump calls Europe “outrageous than China”

“I don’t make the greatest allegations to the pharmaceuticals,” said Trump now. The companies are often forced to bow under pressure. Instead, he attacked European countries particularly sharply. American patients would have co -financed “socialist health systems” like that in Germany. The European Union accused Trump to behave “insolent than China” in price negotiations. Europe will have to dig deeper into the pocket in the future: “The rest of the world will have to pay more,” he said. “And America will pay much less.”

In his decree, Trump relies on the principle of the “Most Favored Nation”, which he wanted to introduce during his first term: the USA should not pay more for certain medication than the country that demands the world’s lowest price – regardless of market size or economic strength. “This game is over,” said Trump, with a view to countries, which in his view so far had benefited from favorable conditions at the USA.

Pharmaceutical industry under pressure – consequences for patients?

The announcement of the US President puts the pharmaceutical industry under pressure. “The United States is the most important market for innovative medicines,” says Han Steutel, President of the Association Researcher Medicinal Medicines (VFA). “Without the proceeds in the United States, research and development would be, new therapies would also not be conceivable for European patients. What has now been decided in the United States has consequences for the whole world.”

With an international reference at the lowest price, research costs did not have to be paid and market launches could be increasingly questioned, said Stellel. A strong, common EU market with a coordinated drug policy is now necessary.

The advisory company Simon-Kucher also expects far-reaching effects on the global pharmaceutical industry and German companies. “A falling income situation endangers the funds for research, production and jobs at German locations,” says a study.

With a decline in sales in the USA, the pressure for companies is also increasing to achieve higher prices in other industrialized nations such as Germany. Furthermore, pharmaceutical companies could delay the market entry in Germany or Europe or not even to avoid low price references and thus protect the price in the USA, says Simon-Kucher.

Trump activates several authorities

Several US authorities are to be active to implement Trump’s decree. For example, the Ministry of Commerce is intended to act against price policy abroad, which are considered unfair from the American perspective-such as state-defined maximum prices that disadvantage US companies. The Ministry of Health should-where possible-enable direct sales of medication to US consumers at lower prices. The FDA drug authority should also check whether imports from additional industrialized countries can be allowed in the future. According to the white house, export restrictions are also up for discussion.

The Ministry of Health should set concrete goals for price reductions within 30 days. On this basis, the government wants to negotiate with the pharmaceutical industry. If the industry does not go to the government voluntarily and reduce prices, further measures are planned.

The focus should be on medicinal products in which the price differences between the US market and abroad are particularly large. Specific medications or product groups were initially not mentioned. According to the government, a restriction to certain drug groups is not provided.

A lobby with influence – cross -party

Trump accused the pharmaceutical industry to political influence. The lobby is “probably the most powerful in the world,” he said, claiming that the opposing democrats had protected the industry for years.

In fact, the industry is one of the most influential in Washington. With targeted donations – at Democrats and Republicans – pharmaceutical companies are heard in legislation. This is probably why attempts at reform to reduce medication prices are repeatedly encountering resistance across partys – often with reference to possible consequences for research and innovation.

The costs for medication are an ongoing topic in the USA. Unlike in many other industrialized countries, there is no central state price regulation. The pricing is largely in the hands of the pharmaceutical companies. This leads to much higher costs than in Europe, for example. Various forms of state control work in Germany.