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Trump’s new directive aims to lower healthcare costs

16 Apr 2025


Reuters reported on 15 April that US President Donald Trump signed an executive order that directs the Department of Health and Human Services (HHS) to pursue changes regarding Medicare’s negotiation of drug prices.
This will be beneficial to the pharmaceutical industry.
Trump's directive seeks to extend the negotiation eligibility for small-molecule drugs to match the 13-year timeline for biologics.
Under current law, complex biologic drugs can be negotiated after 13 years on the market, while small-molecule drugs (typically pills) become eligible after only 9 years. Drugmakers argue that this shorter window for pills stifles innovation.

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