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American Focus > Blog > Health and Wellness > Trump Escalates Demands That Drug Companies Lower Prices
Health and Wellness

Trump Escalates Demands That Drug Companies Lower Prices

Last updated: August 6, 2025 11:05 am
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Trump Escalates Demands That Drug Companies Lower Prices
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The latest edition of InnovationRx brings you a roundup of the most recent developments in the healthcare and biotech industries. From the Administration’s push for drug pricing reforms to groundbreaking advancements in rare disease treatments, there’s a lot to unpack in this week’s news.

President Trump made headlines over the weekend with his bold claims of slashing drug prices by 1500%. While this may seem like an impossible feat, the Administration is doubling down on its efforts to hold pharmaceutical companies accountable. Letters were sent to 17 major drug manufacturers, demanding price cuts in line with international standards. The Administration’s Most Favored Nation pricing order aims to align U.S. drug prices with those in other developed countries, with threats of enforcement looming if companies don’t comply.

However, Trump’s trade policy could pose challenges to his drug pricing agenda. Plans to implement a 250% tariff on imported pharmaceuticals could have significant repercussions on drug costs in the U.S., potentially hindering the Administration’s efforts to lower prices.

In the world of biotech, Suma Krishnan, a seasoned drug developer, made waves with her innovative approach to treating a rare genetic disorder known as “Butterfly Skin Disease.” By founding Krystal Biotech and pioneering a topical gene therapy, Krishnan and her husband Krish Krishnan have built a $4 billion biotech empire. With one FDA-approved therapy on the market and several others in development, Krystal Biotech is revolutionizing the treatment landscape for rare diseases.

On the technology front, advancements in drug testing using organ chips are paving the way for more accurate and cost-effective testing methods. By simulating organ behavior in a lab setting, researchers have found that organ chips can predict the toxicity of drug compounds with greater accuracy than traditional animal testing methods. This shift towards more efficient testing approaches could save billions in research and development costs while improving patient safety.

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In the digital health space, Hungarian startup Turbine AI is collaborating with Merck & Co. to deploy AI models in the fight against cancer. By utilizing virtual cell models to simulate hard-to-treat tumors, Turbine AI aims to revolutionize cancer treatment for underserved patient populations. Additionally, Ultromics, a UK-based company specializing in cardiac diagnostics, recently raised $55 million to further develop its FDA-cleared algorithms for detecting heart conditions.

In the realm of medtech, SetPoint Medical received FDA approval for its implantable device designed to treat patients with moderate-to-severe arthritis. By electrically stimulating the vagus nerve, the SetPoint System triggers the body’s anti-inflammatory responses, offering a novel approach to arthritis management.

On the public health front, vaccination rates among children entering kindergarten have declined, posing a concerning trend as the measles outbreak continues to grow. The Gates Foundation’s pledge of $2.5 billion to women’s health initiatives aims to address critical healthcare needs globally.

Overall, the healthcare and biotech industries are experiencing rapid advancements and transformative changes that have the potential to improve patient outcomes and revolutionize treatment approaches. Stay tuned for more updates and groundbreaking developments in the weeks to come.

TAGGED:companiesDemandsDrugEscalatesPricesTrump
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