Can Trump's Drug Pricing Initiative Revolutionize Big Pharma and Lower Prices?

LOS ANGELES, CALIFORNIA – MAY 12: Medications are stored on shelves at a pharmacy on May 12, 2025, in Los Angeles, California. President Donald Trump signed an executive order aiming to slash prescription drug prices by 30% to 80%. This initiative proposes aligning U.S. drug costs with those in foreign nations, a move that challenges pharmaceutical companies who believed they were progressing with the administration, as reported by Axios. The U.S. Department of Health and Human Services is tasked to establish price reduction benchmarks in 30 days. If negotiations falter, a “Most Favored Nation” policy will match U.S. prices with those in developed countries. Trump emphasized ensuring fair pricing amid an ongoing critique from the pharmaceutical sector about U.S. pricing disparities.