UofL doctor says prescription drug prices can reflect development costs as Trump pushes to lower them

LOUISVILLE, Ky. (WDRB) -- President Donald Trump signed a new executive order Monday aimed at slashing the cost of prescription drugs in the United States, calling current prices “outrageous” and “unfair to patients.”

“Prices are too high,” Trump said during a White House announcement. “For the first time in many years, we’ll slash the costs of prescription drugs and we will bring fairness to America. Drug prices will come down by much more.”

The order gives pharmaceutical companies 30 days to voluntarily lower costs or face new federal pricing rules. Under the proposed model, the U.S. would cap the amount it pays for certain medications, matching the prices paid in other countries—where costs are often significantly lower.

According to a report from the U.S. Department of Health and Human Services, American drug prices were nearly three times higher than those in comparable nations in 2022.

Dr. David Hein, chair of the Department of Pharmacology and Toxicology at the University of Louisville, says a major reason for high prices is the steep cost of drug development.

“Most of the drugs that begin in the pipeline don’t make it to the end,” Hein explained. “So that’s part of the reason that the pharmaceutical companies feel like they need to recoup their costs with high prices.”

The pharmaceutical industry was quick to criticize the executive order, warning it could lead to reduced investments in research and development for new medications. Major U.S. drugmakers called the plan a “bad deal for Americans.”

While the full impact on consumers remains uncertain, Trump claims the policy will offer massive discounts for low-income patients on lifesaving drugs. Initial implementation is expected to target select Medicare-covered medications, including expensive cancer infusions and popular weight loss drugs like Ozempic.

“Increased scrutiny on drug prices is needed,” Hein said. “The pharmaceutical companies need to have the resources they need to develop the drugs, and the patients need to have drug prices that they can afford.”

This is not Trump’s first attempt to curb drug prices. A similar executive order issued during the final months of his first term was ultimately blocked in federal court.

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