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How will Donald Trump’s plan to cut drug prices work?

  • President Donald Trump signed an executive order on May 12, 2025, aimed at reducing U.S. Prescription drug prices to international levels.
  • The order was influenced in part by a discussion with a friend who mentioned paying $88 for a weight-loss injection in London, compared to $1,300 for the same treatment in the United States, underscoring significant price disparities.
  • The order directs federal agencies to negotiate drug price reductions within 30 days and considers importing medicines, export restrictions, and direct-to-consumer purchasing to lower costs.
  • Trump stated the U.S. Will pay "the lowest price there is in the world," with potential savings of 59% or more, while industry groups warned the order could reduce treatments and investment.
  • Legal challenges and industry resistance may delay implementation, leaving uncertainty about how effectively the order will lower drug costs for Americans.
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CNBC broke the news in United States on Monday, May 12, 2025.
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