US President Donald Trump threatened to use import restrictions on the pressure of foreign suppliers to reduce drug prices on Tuesday.
Trump spoke in the White House during an action with Republican legislators and further warned pharmaceutical companies to face “many problems” if they disagreed with lower drug prices in the US.
Trump has undertook to reduce what consumers pay for prescription drugs.
“Drug companies will have a lot of problems if they disagree that they will reduce prices,” he said, indicating the plans to use business policy as a lever effect.
“We will reduce drug prices … We will use import restrictions to force foreign suppliers to reduce drug prices.”
The US President’s statement comes more than a month after he signed a wide executive order in June, which ordered drug manufacturers to reduce the prices of prescription drugs to match what other countries apply.
The order stated that Trump’s administration gives the price objectives of drugs within one month and, if it cannot make “significant progress”, can take regulatory measures or measures such as imports of drugs – although analysts and lawyers claim to be difficult to implement such steps.
Does Donald Trump’s drug rules affect India?
India plays a key role in the supply of pharmaceutical products to the US, including generic drugs and active pharmaceuticals (APIs).
According to The Times of India, the new Deli provides approximately 35 % of all generic drugs prescribed in the US.
Therefore, Trump’s order would force foreign drug producers to reduce drug prices through import restrictions that could significantly affect them, given that India and the US have not yet signed a business agreement.
In June, however, Crisil said that Donald Trump’s executive order to reduce prescription drugs would have a limited impact on Indian pharmaceutical companies.
The credit company, which in its report, was communicated for the reason for its observation, said that, despite India, which exports more than half of its pharmaceutical production, it includes the volume of low cost -effective generic drugs that are already working on thin margins, leaving little space to further reduce prices.
“The export of API (15 % of the Indian export of the pharmacy) is expected to be generally unaffected, because it is not the main cost of drugs with high -edge agents that would concern price pressure,” the report said.
Generic Pharma Drugs accounts for 90 % of the regulation sales volume, but only 13 percent of the US value. General drug prices in the US are very low and have lower prices compared to economically peers.
(Tagstotranslate) Picative prices
