{"id":88798,"date":"2026-06-30T06:21:12","date_gmt":"2026-06-30T10:21:12","guid":{"rendered":"https:\/\/tvdelmarva.com\/wp\/trumps-drug-price-plan-stalls-as-mid-sized-pharma-companies-balk\/"},"modified":"2026-06-30T06:21:12","modified_gmt":"2026-06-30T10:21:12","slug":"trumps-drug-price-plan-stalls-as-mid-sized-pharma-companies-balk","status":"publish","type":"post","link":"https:\/\/tvdelmarva.com\/wp\/trumps-drug-price-plan-stalls-as-mid-sized-pharma-companies-balk\/","title":{"rendered":"Trump’s Drug Price Plan Stalls as Mid-Sized Pharma Companies Balk"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n

President Donald Trump has pledged to make American prescription drug prices the lowest on the planet, but a closely watched government pilot program is revealing just how hard it may be to get the entire pharmaceutical industry on board.<\/p>

The Trump administration managed to secure agreements with 17 of the world’s largest drugmakers, committing them to offer prices comparable to what other developed nations pay \u2014 a concept known as “most-favored-nation” pricing. But efforts to bring smaller and mid-sized companies into the fold have been slow, with industry lobbyists pointing to a lack of enthusiasm from those companies.<\/p>

The White House says the deals already signed cover roughly 86% of the U.S. branded drug market by sales and could generate $64.3 billion in combined federal and state savings over the next decade \u2014 though analysts note that figure is speculative. About half of those projected savings would need to come from state governments, which have until September to decide whether to join the program.<\/p>

The application window for the U.S. Centers for Medicare and Medicaid Services’ pilot \u2014 which covers more than 80 million low-income Americans through Medicaid \u2014 was extended twice from its original March 31 deadline before closing on June 11. Participating companies would agree to offer Medicaid drug prices in line with international rates for five years.<\/p>

SMALLER COMPANIES SEE LITTLE INCENTIVE<\/p>

Ionis Pharmaceuticals CEO Brett Monia told Reuters his company was invited to participate but decided against it. “We don’t have the breadth of drugs on the market that we can cut deals,” he said. “But at the end of the day, we don’t see the upside of cutting a deal.”<\/p>

Monia noted that mid-sized companies like his are actually responsible for developing most new innovative medicines, but they operate under different business models than large pharmaceutical firms. Many rely on licensing arrangements with overseas partners to sell their drugs outside the United States, making international pricing comparisons more complicated.<\/p>

Four industry lobbyists confirmed that based on feedback from pharmaceutical companies, mid-sized and smaller drugmakers have largely stayed on the sidelines. With fewer drugs in their portfolios than major competitors, cutting prices could significantly hurt their financial performance.<\/p>

“There is no real upside,” one lobbyist said, speaking anonymously because they were not authorized to comment publicly. The lobbyist added that companies are likely to “steer away” from any voluntary program that limits their ability to set their own prices.<\/p>

A spokesperson for CMS pushed back, saying drug manufacturers showed “robust interest” in the program and that the agency received a significant number of applications.<\/p>

WHICH COMPANIES APPLIED?<\/p>

Reuters contacted 19 of the next largest drug companies. Of those, only Japan’s Astellas confirmed it had applied. Astellas’ biggest product, a prostate cancer drug called Xtandi, was developed alongside Pfizer \u2014 which had already signed a deal with the administration. U.S. sales make up about 45% of Astellas’ 2025 revenue.<\/p>

“We determined that this application represents the most constructive path forward in a complex and rapidly evolving policy environment,” an Astellas spokesperson said.<\/p>

Germany’s Bayer and Japan’s Daiichi Sankyo said they were still weighing their options, even though the application deadline had already passed. The remaining 15 companies either declined to comment or did not respond.<\/p>

Analysts have pointed out that the pilot’s real-world impact may be limited anyway, since Medicaid already receives discounts of more than 80% off list prices in some cases \u2014 potentially putting those prices close to what foreign countries already pay.<\/p>

LEGAL CHALLENGES LOOM<\/p>

Companies that choose not to join the Medicaid pilot could face two other CMS programs that may be mandatory, potentially setting drug prices for the larger Medicare program \u2014 which serves older Americans \u2014 as soon as October. Medicare drug spending runs roughly two to three times the size of the Medicaid program.<\/p>

Industry groups PhRMA and BIO have argued these programs would be unlawful. BIO has written to CMS contending the programs exceed the agency’s legal authority and raise constitutional concerns \u2014 arguments similar to those it made against elements of former President Joe Biden’s Inflation Reduction Act, which also pushed for drug price reductions in Medicare.<\/p>

Pharmaceutical pricing consultant Brian Reid said some companies may simply be waiting to see how the programs unfold and whether legal challenges gain traction before committing to any agreement.<\/p>

“This is a pretty extraordinary use of CMS’s power that hasn’t quite been tested,” Reid said. “That’s not the same as saying legal challenges would succeed, but there’s certainly a lot of questions that have never been litigated before.”<\/p>","protected":false},"excerpt":{"rendered":"

President Trump’s effort to bring U.S. prescription drug prices down to the lowest in the world is running into resistance from mid-sized and smaller pharmaceutical companies. A Medicaid pilot program meant to lock in ‘most-favored-nation’ pricing has seen limited interest beyond the biggest drugmakers. Industry lobbyists say smaller companies see little benefit and significant financial risk in signing on.<\/p>\n","protected":false},"author":4,"featured_media":88797,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[837],"tags":[],"class_list":["post-88798","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-health"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/tvdelmarva.com\/wp\/wp-content\/uploads\/2026\/06\/news-1782814872536.jpg?fit=450%2C280&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/pbtNqq-n6e","jetpack-related-posts":[{"id":44911,"url":"https:\/\/tvdelmarva.com\/wp\/pharmaceutical-companies-postpone-european-drug-launches-over-trump-pricing-concerns\/","url_meta":{"origin":88798,"position":0},"title":"Pharmaceutical Companies Postpone European Drug Launches Over Trump Pricing Concerns","author":"Admin","date":"March 31, 2026","format":false,"excerpt":"Major pharmaceutical companies are holding back new medication releases in Europe due to concerns about President Trump's drug pricing policies. The delays stem from fears that lower European prices could negatively impact the lucrative U.S. market under new pricing rules.","rel":"","context":"In "Business"","block_context":{"text":"Business","link":"https:\/\/tvdelmarva.com\/wp\/category\/business\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/tvdelmarva.com\/wp\/wp-content\/uploads\/2026\/03\/news-1774938153090.jpg?fit=450%2C309&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":39659,"url":"https:\/\/tvdelmarva.com\/wp\/federal-officials-begin-talks-with-drug-companies-on-trump-pricing-plan\/","url_meta":{"origin":88798,"position":1},"title":"Federal Officials Begin Talks with Drug Companies on Trump Pricing Plan","author":"Admin","date":"March 19, 2026","format":false,"excerpt":"The U.S. Department of Health and Human Services has started discussions with pharmaceutical companies about implementing President Trump's most-favored-nation pricing proposal. The initiative seeks to make American prescription drug prices match those found in other developed nations.","rel":"","context":"In "Politics"","block_context":{"text":"Politics","link":"https:\/\/tvdelmarva.com\/wp\/category\/politics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/tvdelmarva.com\/wp\/wp-content\/uploads\/2026\/03\/news-1773953471641.jpg?fit=450%2C300&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":23063,"url":"https:\/\/tvdelmarva.com\/wp\/mid-size-companies-see-import-tax-bills-triple-bank-study-reveals\/","url_meta":{"origin":88798,"position":2},"title":"Mid-Size Companies See Import Tax Bills Triple, Bank Study Reveals","author":"Admin","date":"February 19, 2026","format":false,"excerpt":"A new JPMorganChase Institute study shows mid-sized American businesses paid three times more in import taxes last year. The companies, which collectively employ 48 million workers, are being forced to adjust by raising prices, cutting jobs, or accepting reduced profits.","rel":"","context":"In "Business"","block_context":{"text":"Business","link":"https:\/\/tvdelmarva.com\/wp\/category\/business\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/tvdelmarva.com\/wp\/wp-content\/uploads\/2026\/02\/news-1771500665899.jpg?fit=1000%2C666&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/tvdelmarva.com\/wp\/wp-content\/uploads\/2026\/02\/news-1771500665899.jpg?fit=1000%2C666&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/tvdelmarva.com\/wp\/wp-content\/uploads\/2026\/02\/news-1771500665899.jpg?fit=1000%2C666&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/tvdelmarva.com\/wp\/wp-content\/uploads\/2026\/02\/news-1771500665899.jpg?fit=1000%2C666&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":55775,"url":"https:\/\/tvdelmarva.com\/wp\/eu-drug-chief-warns-europe-faces-crisis-in-access-to-new-medications\/","url_meta":{"origin":88798,"position":3},"title":"EU Drug Chief Warns Europe Faces Crisis in Access to New Medications","author":"Admin","date":"April 22, 2026","format":false,"excerpt":"The head of Europe's drug regulatory agency warns the continent faces a crucial moment for securing access to new medications as U.S. pricing policies disrupt the pharmaceutical industry. Drug launches in Europe have dropped by over one-third since new American pricing rules took effect last year.","rel":"","context":"In "Health"","block_context":{"text":"Health","link":"https:\/\/tvdelmarva.com\/wp\/category\/health\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/tvdelmarva.com\/wp\/wp-content\/uploads\/2026\/04\/news-1776867765828.jpg?fit=450%2C299&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":68401,"url":"https:\/\/tvdelmarva.com\/wp\/white-house-plans-major-expansion-of-government-drug-discount-website\/","url_meta":{"origin":88798,"position":4},"title":"White House Plans Major Expansion of Government Drug Discount Website","author":"Admin","date":"May 18, 2026","format":false,"excerpt":"President Trump will unveil a significant expansion of the TrumpRx.gov prescription drug discount website on Monday, according to a White House official. The expanded site will include generic medications and features billionaire Mark Cuban as a special guest at the announcement event.","rel":"","context":"In "Politics"","block_context":{"text":"Politics","link":"https:\/\/tvdelmarva.com\/wp\/category\/politics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/tvdelmarva.com\/wp\/wp-content\/uploads\/2026\/05\/news-1779124980274.jpg?fit=450%2C300&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":46556,"url":"https:\/\/tvdelmarva.com\/wp\/trump-announces-new-drug-tariffs-revises-metal-duties-one-year-after-trade-policy-shift\/","url_meta":{"origin":88798,"position":5},"title":"Trump Announces New Drug Tariffs, Revises Metal Duties One Year After Trade Policy Shift","author":"Admin","date":"April 2, 2026","format":false,"excerpt":"President Trump has implemented 100% tariffs on certain pharmaceutical imports while modifying steel, aluminum and copper duties. The changes come exactly one year after his previous broad tariff program was declared illegal by the Supreme Court.","rel":"","context":"In "Politics"","block_context":{"text":"Politics","link":"https:\/\/tvdelmarva.com\/wp\/category\/politics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/tvdelmarva.com\/wp\/wp-content\/uploads\/2026\/04\/news-1775172108223.jpg?fit=450%2C291&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/tvdelmarva.com\/wp\/wp-json\/wp\/v2\/posts\/88798","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tvdelmarva.com\/wp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tvdelmarva.com\/wp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tvdelmarva.com\/wp\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/tvdelmarva.com\/wp\/wp-json\/wp\/v2\/comments?post=88798"}],"version-history":[{"count":0,"href":"https:\/\/tvdelmarva.com\/wp\/wp-json\/wp\/v2\/posts\/88798\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tvdelmarva.com\/wp\/wp-json\/wp\/v2\/media\/88797"}],"wp:attachment":[{"href":"https:\/\/tvdelmarva.com\/wp\/wp-json\/wp\/v2\/media?parent=88798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tvdelmarva.com\/wp\/wp-json\/wp\/v2\/categories?post=88798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tvdelmarva.com\/wp\/wp-json\/wp\/v2\/tags?post=88798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}