Overview of the Executive Order

On May 12, 2025, President Donald Trump enacted a new executive order aimed at reducing the costs of prescription medications in the United States. The directive requires pharmaceutical companies to lower drug prices within a tight timeframe of 30 days. Failure to comply could result in severe payment restrictions in the future.

Targeted Medications

The executive order focuses on high-cost drugs covered under Medicare. Notable mentions include:

• Cancer treatment medications
• Weight-loss drugs such as Ozempic

Industry Response and Concerns

Reactions from pharmaceutical industry representatives have been mixed. Many express that the proposed measures could hinder innovation in drug development. Additionally, there are fears that such policies may increase dependency on foreign pharmaceutical markets, particularly in countries like China.