Trump's Drug Pricing Order: A Catalyst for Global Pharma Pricing Reforms?

US President Donald Trump's proposal to slash prescription drug prices may lead to a global price adjustment, with pharmaceutical firms pushing lower-cost countries like India to elevate prices. The move could catalyze trade negotiations and impact India's patent laws, thus challenging the accessibility of generic medicines.

President Donald Trump's executive order aimed at reducing prescription drug prices by up to 80% might trigger a global price restructuring, according to economic scholars. The Global Trade Research Initiative (GTRI) posits that pharma companies may push countries like India, known for lower-cost medications, to increase their prices.

GTRI Founder Ajay Srivastava emphasized the potential for intense trade negotiations, suggesting that India could be pressured into altering its patent laws to comply with foreign demands. As Trump's Most-Favored Nation (MFN) pricing policy takes center stage, pharmaceutical firms could intensify efforts to adjust prices in overseas markets.

India remains committed to its current patent regulations, ensuring affordable, non-monopolistic drug access. Srivastava highlighted the importance of defending this model amidst growing international pressure. Given India's leading role in global generic drug supply, preserving its pharmaceutical framework is both a national interest and a global necessity.

(With inputs from agencies.)