The US pharmaceutical industry is reportedly seeking ways to maintain profits amid an initiative to reduce drug prices for Americans, which could potentially impact access to medicine in Europe. According to a report by the Financial Times, major drugmakers are looking to circumvent US President Donald Trump’s campaign to lower drug costs, which may have significant consequences for European countries.
Since last year, Trump has been pressuring big pharma to benchmark key medicines sold in the US to prices in other countries, citing unfair pricing differences. In response, 16 major global drug companies have agreed to cut prices in exchange for three years of tariff relief, starting from January. However, pharmaceutical executives are now considering alternative strategies to maintain their profit margins.
Pfizer CEO Albert Bourla recently stated that the company is more inclined to cease supplies to European nations rather than lower prices in the US. This decision would be a result of the US pricing pressures, which could force pharmaceutical companies to choose between reducing prices in the US or stopping supplies to countries like France. Other executives have also privately considered delaying or withdrawing new drugs in Europe, according to the Financial Times.
The US pharmaceutical pricing system is distinct from that of European countries, which have centralized, government-run healthcare systems that negotiate drug prices nationally. This gives European countries significant bargaining power to secure lower costs. In contrast, the US system is a mix of private insurers and public programs that do not negotiate collectively, resulting in higher prices.
Pharmaceutical lobbyist Alexander Natz has warned that US pressure to lower drug prices could have a significant impact on Europeans’ access to medicine, potentially more so than tariffs. This development highlights the complexities of the global pharmaceutical industry and the potential consequences of pricing pressures on access to medicine. As the situation unfolds, it remains to be seen how pharmaceutical companies will balance their profit margins with the need to provide affordable medicine to patients worldwide.
