Donald Trump to tether US drug costs to cheapest prices abroad: Bill Ackman says ‘must have liked my idea’

United States President Donald Trump on May 12 proposed to cut the cost of prescription drugs in the country, by tethering domestic prices to the lowest a company offers in the international market.

In a lengthy post on his social media platform Truth Social, Donald Trump said he would sign the executive order to this effect at 9 am (6.30 pm IST) on May 12 in Washington. Backing Donald Trump's gambit was billionaire Bill Ackman, who said that his proposal in March, must have been liked by the president.

Donald Trump ‘must have liked my idea’ says Bill Ackman

“President Donald Trump must have liked my idea,” Ackman posted on X, quoting a March post from himself, where he suggested that US drug prices be tied to international rates.

On March 8, he wrote: “The best way to reduce drug prices in the US is to make it illegal for drug companies to sell the same drugs abroad for lower prices than they sell them for here. This will force a globally negotiated price that will be lower than the prices that US consumers pay now and higher than what foreigners pay now. Otherwise we are stuck with a system where American consumers subsidize drug development for the rest of the world. Ask any pharma company CEO. They will agree that the above approach will have the intended effect.”

Today, the billionaire added that the US has subsidised the world and praised Donald Trump for being “the first president in history to rectify the situation”. He said: “The United States has subsidised the world on trade, defense, drugs, ‘NGOs,’ and more. Our global subsidy has contributed to our $37 trillion of national debt. President Donald Trump is the first president in history to rectify the situation. He deserves enormous credit for doing so.”

Notably, a hardcore Donald Trump supporter, Bill Ackman had publically criticised the US President for his tariffs policy.

US to cap drug prices: What did Donald Trump say?

“For many years the World has wondered why Prescription Drugs and Pharmaceuticals in the United States of America were SO MUCH HIGHER IN PRICE THAN THEY WERE IN ANY OTHER NATION, SOMETIMES BEING FIVE TO TEN TIMES MORE EXPENSIVE THAN THE SAME DRUG, MANUFACTURED IN THE EXACT SAME LABORATORY OR PLANT, BY THE SAME COMPANY??? It was always difficult to explain and very embarrassing because, in fact, there was no correct or rightful answer,” Donald Trump wrote.

He added: “The Pharmaceutical/Drug Companies would say, for years, that it was Research and Development Costs, and that all of these costs were, and would be, for no reason whatsoever, borne by the “suckers” of America, ALONE. Campaign Contributions can do wonders, but not with me, and not with the Republican Party. We are going to do the right thing, something that the Democrats have fought for many years. Therefore, I am pleased to announce that Tomorrow morning, in the White House, at 9:00 A.M., I will be signing one of the most consequential Executive Orders in our Country’s history.”

Giving details on what his plan aims to achieve, Donald Trump stated that he expects the prices of prescription drug and pharmaceuticals to “immediately be reduced by 30-80 per cent” and rise in other countries to “bring fairness to America”.

“I will be instituting a MOST FAVORED NATION’S POLICY whereby the United States will pay the same price as the Nation that pays the lowest price anywhere in the World. Our Country will finally be treated fairly, and our citizens Healthcare Costs will be reduced by numbers never even thought of before. Additionally, on top of everything else, the United States will save TRILLIONS OF DOLLARS. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN!” he said.

Donald Trump's drugs prices gambit tank pharma stocks

Shares of pharmaceutical companies fell across Europe and Asia following Donald Trump's post, Bloomberg reported.

• In Europe, obesity-drug maker Novo Nordisk A/S fell 8.6 per cent during opening hours — among the steepest decliners in the Stoxx 600 Health Care Index, which slid 3.3 per cent.
• In Japan, drug companies were the worst performers, dragging the benchmark Topix. Chugai Pharmaceutical Co. plunged 10 per cent (its biggest dip since February 2024), Daiichi Sankyo Co. slid 7.8 per cent, and Takeda Pharmaceutical Co. lost over 5 per cent.
• In Hong Kong, BeiGene Ltd. tumbled 8.8 per cent and Innovent Biologics Inc. dropped 6.4 per cent. 
• In South Korea, SK Biopharmaceuticals Co., Celltrion Inc. and Samsung Biologics Co. all fell over 3 per cent. 
• In India, Sun Pharmaceutical Industries Ltd. lost 7 per cent at one point, with Lupin Ltd. and Aurobindo Pharma Ltd. falling around 3 per cent each.

(With inputs from Bloomberg)