Trump: the Other nations extorting drug makers


The US President, Donald Trump has accused foreign governments, to extort “abnormally low prices of medicines” from pharmaceutical companies.

Speaking in Washington on Friday, he said that he had directed his top trade official to make this issue a priority in trade negotiations.

“It is time to put an end to the global free-loading once and for all,” he says.

The president is under pressure to deliver on campaign promises to reduce the high cost of prescription drugs.

In his speech, the president partly blamed the high prices on the price controls in other countries, he said, “extort unreasonably low prices” of companies, forcing Americans to pay more to “subsidize the enormous costs of research and development”.

“This is unacceptable”, he said.

However, experts say foreign, the price is not a big influence on US, the costs, and changing it will not help the Americans.

“The notion that if other countries pay more for drugs that WE the consumers will pay less, that it is not true,” said Paul Ginsburg, a professor of health policy at USC and director of the USC-Brookings Schaeffer of the Initiative for Health Policy.

Mr. Ginsburg said that companies set prices to maximize profits, and already largely in the incentives to innovate.

“If they are able to get other countries to pay more, I do not believe that there is an effect on prices in the united States,” he said. “He is just going to increase drug company profits.”

Shares of health care companies jumped after the speech.The increase in costs

Surveys repeatedly find that the reduction of the high cost of prescription drugs is a priority for American voters.

The U.S. has spent $ 1,443 per capita on the costs of pharmaceutical products by 2016, compared to a range of $466 to $939 in 10 other high-income countries, including the united KINGDOM, Australia, Canada and Japan, according to a study published in the Journal of the American Medical Association.

The report says that these costs have been one of the main factors in united states, health spending, which was nearly two times higher than in other countries.

President Donald Trump has seized on the issue during his 2016 election campaign.

At the time, he had said that the government should negotiate the price of medicines for public health programs, such as medicare. He has also expressed his support to allow people to buy drugs from countries where they are cheaper, such as Canada.

None of these proposals was mentioned in Friday’s speech.The details of the plan

The White House has said that his focus is on the increasing competition between drug manufacturers, by the speeding up of approvals for generic drugs and crack down on the “game” of the intellectual property patents.

A plan released Friday also recommends requiring disclosure of out-of-pocket costs before you give the requirements and the elimination of rules which limit what pharmacists can share the costs, among other measures.

Gerard Anderson, professor of health policy at the Johns Hopkins University, said it is too early to say whether the ideas will have an impact on prices, and too early to judge their political effects.

“I don’t know how the American public is going to react,” Mr Anderson said. “It does not clearly address what the President, Trump said that he was going to do when he was elected.”

He also said that he did not think do medicines price of an object of trade negotiations to bring other countries to make changes.

“I don’t expect that a country, that is to say, ‘Oh, we’re going to increase our prices because the President Trump wants to’,” he said.