Trump's Bold Move to Slash Drug Prices: A Global Benchmark

In a significant policy move, U.S. President Donald Trump is set to sign an executive order pushing pharmaceutical companies to lower drug costs to levels seen in other countries. The directive, expected Monday, aims to establish international benchmarks for drug pricing, according to White House officials.

The executive order comes amidst investor skepticism, but shares of major drug companies rebounded after initial declines in response to the anticipated 'most favored nation' pricing strategy. The U.S. continues to lead in prescription drug costs, often paying triple compared to other developed nations.

Should drugmakers fall short of the new targets, the Trump administration plans to enforce rules mandating price reductions, potentially exploring drug importation and export restrictions. Additionally, the order enables the Federal Trade Commission to increase scrutiny and enforcement against anti-competitive practices in the industry.

(With inputs from agencies.)