On May 12, the White House released an Executive Order addressing what they believe are duplicitous marketing practices by prescription drug companies in the United States. The White House states that drug companies are able to market prescription drugs overseas for very cheap because those sales are subsidized by high domestic drug prices.

President Trump’s Executive Order now gives the US the ability to receive “most-favored nation” status from all pharmaceutical companies, meaning that the US will receive drug prices from pharmaceutical companies that match their most favorable prices internationally. This pricing extends to direct-to-consumer pricing. The Executive Order also states that foreign countries may not pass laws or regulations that interfere with an individual’s right to receive “most-favored nation” pricing.

Finally, the Executive Order has included a method to determine “most-favored nation” pricing, although it is vague and mostly directs the heads of relevant agencies to determine the amount.

You can read the entire Executive Order HERE.