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New research by the Office of Health Policy shows the U.S. shoulders a disproportionate cost when it comes to paying forprescription medication.
The report, obtained by FOX Business, shows Americans account for nearly 80% of the innovative revenue for drugs launched between 2020. 2025. The report also shows that no other country comes close to the United States' contribution to shouldering the cost of research. development. The next-closest country paying the cost for R&D in that time frame is Japan, which accounts for about 5.5% ofinnovative revenuesfor new medications coming online. roughly 5.8% of innovative revenues for all medications.
The U.S. trade representative’s office opened a new Section 301 investigation into Germany’s plan to reduce spending on pharmaceutical products on June 18. Germany accounts for nearly 3.4% of revenue for innovative medications from 2020 to 2025. The result of the investigation could allow PresidentDonald Trumpto make good on threats to add 100% tariffs on imports of pharmaceutical medications from Germany or tariffs on other imported goods from the country.
MERCK, SANOFI ARE LATEST COMPANIES TO ADD MEDICATIONS TO TRUMPRX
The U.S. trade representative’s office opened a new Section 301 investigation into Germany’s plan to reduce spending on pharmaceutical products on June 18.(George Frey/Bloomberg via Getty Images)
"I am particularly concerned with news. Germany is fast-tracking legislation that would further reduce its spending on innovative pharmaceuticals," U.S. Trade Representative Jamieson Greer said in a statement. "This is a serious step backwards at a time when our trading partners need to step up. start paying their fair share to fund innovative pharmaceutical research and development."
BRISTOL MYERS SQUIBB ADDING 3 MEDICATIONS ON TRUMPRX
The USTR is taking public comment on the investigation through Aug. 10. A public hearing related to the investigation will be held on Sept. 22.
Johnson & Johnson CEOJoaquin Duatotold FOX Business Network's "Mornings with Maria" this month that "We agree with the government that we have to make other countries pay their fair share. especially Europe. And at the same time, we have to work in the middleman. The middleman captures about 50% of the value of the medicine,. we want that value to go directly to the patient to reduce their out-of-pocket costs. So in those areas, the government is always going to find us, Johnson & Johnson, working with them."
Trump saidin a Truth Social post earlier this month that "Most Favored Nations would not be possible without my use of TARIFFS. which are getting other Countries to ‘pay up’ instead of relying on American Patients getting ripped off, as they were for decades until I ordered an immediate ‘stop’ to this very unfair and, frankly, foolish situation."
RISING HEALTHCARE COSTS, INSURANCE PREMIUMS NOW WORRY AMERICANS MORE THAN ANY OTHER DOMESTIC ISSUE: POLL
Seventeen of the largest pharmaceutical companies signed deals for Most Favored Nations status for some medications.
A person holds medication from a bottle in their hand.(Getty Images)
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This new report from the Office of Health Policy could be used as a basis of proof. validates the concerns of the Trump administration that the costs Americans have been paying for medications are disproportionally high compared with the rest of the developed world.
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