US pushes for ‘TrumpRx’ to directly cut high drug prices
The United States is considering a government-operated direct-purchase portal called “TrumpRx” as a new solution to address the issue of high drug costs in America, launching a comprehensive push to pressure pharmaceutical companies to lower drug prices.
Back in May, President Donald Trump issued an executive order centered on “most-favored-nation (MFN) drug pricing” and directed the U.S. Department of Health & Human Services (HHS) to develop plans for expanding direct-to-consumer (DTC) sales by pharmaceutical companies.
In late July, he sent a letter to the CEOs of 17 global pharmaceutical companies, including Pfizer and Novartis, stating that “American patients should enjoy drug prices comparable to those in developed countries” and demanding a binding response by Sept. 29.
Amid this pressure campaign, the U.S. government recently unveiled plans for a government-run online portal, TrumpRx. This platform would allow patients to purchase discounted medications directly with cash, bypassing insurance. It is unusual for the U.S. government to operate a platform directly. However, the actual launch date and specific operational details have not yet been finalized.
Furthermore, President Trump announced that starting Oct. 1, he would impose tariffs of up to 100 percent on branded patented drugs to increase the pressure. He specifically stated that exceptions would be made for pharmaceutical companies that build production facilities or make investments within the U.S.
The pharmaceutical industry responded immediately. The PhRMA (Pharmaceutical Research and Manufacturers of America) announced it will launch the industry-wide portal “AmericasMedicines.com” next January, enabling cash-paying patients to purchase drugs directly from pharmaceutical companies. Novartis also revealed plans to sell its interleukin inhibitor Cosentyx (secukinumab) starting in November at a price more than half that of the existing drug.
Pressure from the White House has indeed led to some agreements. On Tuesday (local time), Pfizer announced it would lower prices on some drugs and invest $70 billion in its U.S. research, development, and manufacturing operations. This process also included mention of an agreement to lower prices for Medicaid recipients and a plan to sell some products directly through TrumpRx.
However, concerns remain significant. While the DTC approach, which bypasses insurance and pharmacy benefit managers (PBMs), may benefit patients without insurance coverage, its impact on the overall drug pricing structure remains unclear. Additionally, some point out that if 100 percent tariffs are imposed, the resulting surge in prices for imported brand-name drugs could increase the burden on patients.
The Trump administration plans to proceed with establishing regulations to institutionalize MFN drug pricing and the official launch of TrumpRx. As the power struggle between the government and the pharmaceutical industry over drug price reform intensifies, attention is focused on what changes this proposal will bring to the U.S. pharmaceutical market.