I did not follow this story very closely. It appears that President Trump may have strong armed these companies in offering their drugs at lower prices in the US.
It has been argued for several decades that pharmaceutical companies around the world were taking advantage or exploiting the more open, free market of the US by offering higher priced drugs while accepting government price controls and numerous restrictions in other Western countries. As long as these companies were able to make large profits in the US they did not bother too much about limited business in other countries.
"The Trump administration announced new agreements on Friday with some of the world’s largest drug manufacturers aimed at lowering prescription drug costs for Americans.
Nine pharmaceutical companies have agreed to reduce prices on their flagship drugs for Medicaid recipients and people who buy the medications in cash, rather than through insurance, as part of a new deal.
In addition, any newly launched drugs made by the companies will also be charged at the “most-favored-nation” pricing [or lowest price anywhere] across the country for everyone, including commercial and cash pay markets, as well as Medicare and Medicaid.
A senior administration official said about 30 to 40 percent of Medicaid drugs would be impacted."
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