In a whirlwind week for the U.S. pharmaceutical industry, President Donald Trump’s administration has unveiled a series of sweeping reforms aimed at slashing prescription drug prices for American patients—a move that has drawn praise, skepticism, and no shortage of controversy, especially given the involvement of Trump family members and top administration officials in related business ventures.
On October 7, 2025, President Trump signed an executive order designed to force drugmakers to lower the cost of prescription drugs in the United States. According to 9News Australia, the order sets a 30-day deadline for pharmaceutical companies to voluntarily reduce their prices or face new restrictions on what the federal government will pay for medications covered by Medicare and Medicaid. The order tasks Health Secretary Robert F. Kennedy Jr. with brokering new deals over the next month, and if unsuccessful, developing new rules that tie U.S. drug prices to the lowest prices paid by other countries—a so-called “most favored nation” policy.
“We’re going to equalise,” Trump declared at a White House press conference, flanked by Kennedy, Centers for Medicare and Medicaid Services (CMS) Administrator Dr. Mehmet Oz, and other senior officials. “We’re all going to pay the same. We’re going to pay what Europe pays.” Trump cited glaring disparities in drug costs, noting that a breast cancer drug costing Americans over $16,000 per bottle is priced at just one-sixth that amount in Australia and one-tenth in Sweden. “A common asthma drug costs almost $500 here in America, but costs less than $40 in the United Kingdom,” Trump added.
The executive order’s impact on Americans with private health insurance remains uncertain, but its primary focus is on federal programs like Medicare and Medicaid, where the government wields significant negotiating power. Trump insisted that the reforms would ultimately force Europe, Australia, and other developed nations to contribute more to the global cost of drug research and development. “Europe is going to have to pay a little bit more. The rest of the world is going to have to pay a little bit more, and America is going to pay a lot less,” he said, according to 9News Australia.
The pharmaceutical industry’s response was swift and critical. The Pharmaceutical Research and Manufacturers of America (PhRMA), the leading lobby for drugmakers, called Trump’s order a “bad deal” for American patients. “Importing foreign prices from socialist countries would be a bad deal for American patients and workers,” said PhRMA President Stephen J. Ubl in a statement. “It would mean less treatments and cures and would jeopardize the hundreds of billions our member companies are planning to invest in America.”
Despite industry pushback, the White House pressed ahead. On October 1, 2025, President Trump announced a landmark deal in the Oval Office with Pfizer, agreeing to sell its medications to Medicaid at prices comparable to those offered in other countries. According to Barron’s and Hindustan Times, Pfizer CEO Albert Bourla stood alongside Trump, Health Secretary Kennedy, and Dr. Oz as the White House declared the agreement would save “many millions” of dollars for Medicaid.
During a weekly call with MAHA (Make America Healthy Again) supporters on October 8, Dr. Oz acknowledged that the administration’s willingness to work with companies like Pfizer had raised eyebrows among some supporters. “Some of the companies we’re working with are not companies that folks in the MAHA movement have thought highly of,” Oz admitted, as reported by the Hindustan Times. However, he urged supporters to “revisit what has gone down in the last five years,” emphasizing the administration’s efforts to empower Americans by curbing exorbitant drug prices. “We are building the house of trust with all these bricks, with radical transparency at every level,” Oz said, highlighting new initiatives like the TrumpRx website, which will allow consumers to purchase drugs directly from manufacturers.
But the administration’s push for transparency and direct-to-consumer sales has sparked concerns about conflicts of interest. As reported by The Wall Street Journal and the Hindustan Times, Donald Trump Jr. is a board member of BlinkRx, an online prescription drug delivery company positioned to benefit from the administration’s new policies. BlinkRx, which touts its ability to set up direct-to-patient sales programs in as little as 21 days, is set to host a major “Future of Pharmaceuticals” summit in early December at the Four Seasons hotel in Georgetown. The event will bring together top drugmakers, senior administration officials—including Kennedy and Oz—and Trump Jr. himself. The summit will conclude with a dinner at the exclusive Executive Branch club, founded by Trump Jr. and his close friends.
The TrumpRx website, scheduled to launch in early 2026, is expected to direct patients to direct-sale sites like BlinkRx. While larger pharmaceutical companies have already begun developing their own direct-to-consumer platforms, smaller firms may turn to companies like BlinkRx for help establishing such programs. The involvement of Trump Jr. and his investment firm, 1789 Capital—which led a $140 million funding round for BlinkRx in June 2024—has led to accusations of self-dealing and undue influence. “BlinkRx is one of many companies in the marketplace that provide these kinds of services to manufacturers,” said Adam J. Fein, president of Drug Channels Institute. “What is different is Trump’s son is on the board.”
Trump Jr. dismissed the criticism as an “innuendo smear,” asserting that the coverage was driven by pharmaceutical industry advertisers. BlinkRx’s vice president of corporate affairs, Drew Hudson, insisted that “no company will be pitching any services” at the December event, and a spokesman for 1789 Capital emphasized the firm’s commitment to transparency and compliance.
The controversy doesn’t end there. Commerce Secretary Howard Lutnick’s family is also positioned to profit from the administration’s pharmaceutical overhaul. According to The Wall Street Journal, Cantor Fitzgerald—the financial-services firm previously led by Lutnick—handled a $500 million initial public offering for Drugs Made In America Acquisition II, a special-purpose acquisition company (SPAC) targeting investments in domestic drug manufacturing. Lutnick, who transferred ownership of Cantor Fitzgerald to trusts benefiting his adult children, has faced internal administration concerns about potential conflicts of interest. The White House, however, maintains that Lutnick has “fully complied with the terms of his ethics agreement with respect to divestiture and recusals and will continue to do so.”
As the administration’s reforms move forward, the stock market and pharmaceutical sector are watching closely. Barron’s noted that Trump’s policies—including possible tariffs on imported drugs—could reshape the industry, with some investors optimistic about the potential for increased domestic manufacturing and greater transparency in drug pricing. Yet, the fundamental question remains: will these sweeping changes deliver lower drug prices for American patients without stifling innovation or unduly benefiting those with close ties to power?
In a landscape shaped by executive orders, high-stakes deals, and the intertwining of business and politics, Americans can expect the debate over drug pricing—and who stands to gain or lose—to remain front and center in the months ahead.
