Biotech Values

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Here we go again... Trump Administration Prepares a Drug Pricing Executive Order, Sources Say

https://www.bloomberg.com/politics/articles/2017-06-15/trump-administration-said-to-ready-drug-pricing-executive-order


President Donald Trump’s administration is preparing an executive order aimed at lowering U.S. drug costs, according to people familiar with the matter, a move that could come within weeks on a campaign issue that has been largely left out of Republican legislative efforts in Congress.

Top health and budget officials in the administration will meet Friday to discuss the issues, according to the people, who asked not to be identified because the session is private. Trump sought recommendations from the nation’s health agencies on reducing medication costs, Health and Human Services Secretary Tom Price told senators last week.

One policy being discussed for inclusion in the order is expressing support for value-based agreements, a drug industry-backed proposal in which pharmaceutical companies and health insurers develop arrangements to pay for products depending on how well they work, one of the people said.

Price, Centers for Medicare and Medicaid Services Administrator Seema Verma, Food and Drug Administration Commissioner Scott Gottlieb and Treasury Secretary Steve Mnuchin are expected to attend the meeting Friday, which is being led by Office of Management and Budget Director Mick Mulvaney, according to the people.

A White House spokesman didn’t immediately respond to a request for comment. The meeting was first reported by Politico.

The recommendations from the officials may be used to craft a first executive order on drug prices that could come out soon, according to the people, followed by a second, more extensive order later. While executive orders can’t change laws, Trump could use the efforts to direct agencies to explore regulatory changes and set direction.
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The president has threatened on several occasions to force drugmakers to bid for government business as a way to reduce prices. He’s also talked about letting consumers import drugs from other countries with lower prices. Neither of those policies, which would likely require a change in law to be implemented in a meaningful way, are in drafts of the orders, according to one person familiar with the effort.

The FDA has already outlined some policies to target drug pricing. Gottlieb has said the agency may push new generic-drug applications to the front of the line in cases where there are fewer than three competing generic manufacturers, which could raise competition and lower costs for some treatments.