Trump Vows Crackdown on Big Pharma Over Skyrocketing Drug Prices
The Trump administration is signaling a renewed push to lower prescription drug costs, accusing pharmaceutical companies of exploiting American consumers and threatening aggressive enforcement action.
American patients are paying significantly more for prescription drugs than citizens of other nations, a disparity that former President Trump has repeatedly condemned. This summer, Trump threatened “heavy action” against major drugmakers if they didn’t align U.S. prices with those charged internationally. Despite the warning, the industry largely resisted, with only one company reportedly committing to price reductions as of late September.
According to sources, this resistance is viewed as a direct affront to the American people, who already effectively subsidize the pharmaceutical industry’s profits to a greater extent than any other country. Other nations utilize price controls, leading manufacturers to recoup profits by charging significantly higher prices in the U.S. Trump characterized this practice as a “shell game at America’s expense” and demanded an immediate end to it.
Instead of complying, the industry’s trade group, PhRMA, recently offered vague promises of investment and new programs, framing this as a response to Trump’s call without committing to concrete price cuts. A senior official stated that Trump “won’t be fooled by these dodge tactics.”
The administration appears prepared to follow through on its threats. A spring executive order directs Attorney General Pam Bondi and Federal Trade Commission Chair Andrew Ferguson to investigate and prosecute “any anti-competitive practices” within the industry. This enforcement action is anticipated given the industry’s noncompliance.
A key tactic employed by drugmakers to maintain high prices is the creation of “patent thickets” – layering dozens of overlapping patents on a single medication to block generic competition. Others allegedly engage in questionable petitions to the Food and Drug Administration or collude with competitors to artificially inflate list prices. Such practices, under Section 2 of the Sherman Act, could be deemed unlawful maintenance of monopoly power. Antitrust officials have successfully prosecuted similar behavior in other sectors, suggesting a viable legal path forward.
The Trump administration is also urged to avoid allowing Big Pharma to deflect blame onto pharmacy benefit managers (PBMs), the negotiators who work on behalf of employers and insurers to secure lower drug prices. While not without flaws, PBMs are considered essential to controlling costs. Vanderbilt University health-policy professor Stacie Dusetzina reportedly told the DOJ and FTC during a July listening session that eliminating PBMs would likely increase medication costs for Americans. Chair Ferguson has acknowledged that previous attacks on PBMs were not without shortcomings. A fair settlement that addresses harmful PBM practices while preserving their negotiating power is seen as a preferable outcome.
Ultimately, the focus must return to the drugmakers themselves. These companies, according to sources, have openly disregarded Trump’s call for lower prices and continue to profit from the disparity between U.S. and international pricing. If voluntary changes are not forthcoming, the DOJ and FTC are expected to pursue aggressive antitrust enforcement. Americans, the argument goes, deserve to pay the same prices for medications as consumers in other countries – not three times more.
Trump’s track record suggests he is serious about challenging entrenched interests. Big Pharma, having failed to act responsibly, now faces the prospect of a full-scale government intervention. The DOJ and FTC are poised to ensure they do.
