US President Donald Trump in a meeting on Tuesday with pharmaceutical executives called on them to manufacture more of their drugs in the United States and cut prices, while vowing to speed approval of new medicines and ease regulation.
Trump told them the government was paying “astronomical” prices for medicines in its health programs for older, disabled and poor people and said he would soon appoint a new US Food and Drug Administration leader.
“We’re going to streamline the FDA,” Trump said in a statement.
The meeting between Trump and the pharmaceutical executives signalled a defusing of tensions that have kept drug stock prices in check since the presidential election. Shares of most of the group rallied on Tuesday following the meeting, even as the broader stock market slid.
Market strategist Quincy Crosby of Prudential Financial in Newark, New Jersey said Trump was playing a balancing act between controlling prices and loosening regulations. “I don’t think the majority of Americans want all regulations lifted from drug makers.”
Attending the meeting were top executives at Merck & Co Inc, Johnson & Johnson, Celgene Corp, Eli Lilly & Co, Amgen Inc and Switzerland’s Novartis AG as well as the head of the Pharmaceutical Research and Manufacturers of America (PhRMA) lobbying group. According to a transcript of the televised portion of the meeting, Amgen chief executive officer Robert Bradway promised to add 1,600 US jobs at his California-based biotechnology company this year. Amgen clarified in an e-mail that it currently employs around 20,000 people worldwide, including 12,000 in the United States, and said the 1,600 includes new staff as well as hires to address attrition. Celgene, Lilly, Merck and Amgen said by e-mail after the meeting that they were encouraged by Trump’s focus on innovation, tax reform and the need for a more value-driven health care system.
Lilly said discussion topics also included stronger trade agreements and removing “outdated regulations that drive up costs and slow innovation.”
PhRMA echoed those points in its own post-meeting statement, adding that the policies, if enacted, would result in up to 350,000 new jobs over the next 10 years.
“Tax, deregulation – those are things that could really help us expand operations,” Lilly CEO Dave Ricks said. Officials at Novartis and J&J did not immediately respond to requests for comment.
“We have to get prices down for a lot of reasons. We have no choice, for Medicare and Medicaid,” Trump said, citing the nation’s government insurance programs for the elderly, the poor and the disabled. Trump also said currency devaluation by other countries had increased drugmakers’ outsourcing their production, and he called on the companies to make more of their products in the United States. Foreign countries must pay a fair share for drug development costs, he added.
“We’re going to end global freeloading.”The United States typically pays more for drugs than any other developed nation. Most Western European countries, as well as Japan, have government-run health care coverage under which drug prices are negotiated.