According to latest reports, Donald Trump has told pharmaceutical bosses to drop “astronomical” drug prices.
Reports said that during a latest White House meeting with senior pharmaceutical officials he also emphasis the firms to produce more of their drugs in the US.
On the other hand, he also promised to help the firms by speeding up the agreement of new medicines and by cutting taxes.
Following his announcements shares of many of the biggest US drug-makers surged on Tuesday.
In the recent times most of the drug makers have confronted strong criticism from US politicians, including Mr Trump as well as insurance firms and patients’ groups over the high prices of new medicines and price hikes in some older standard drugs.
In the reported meeting heads of Merck, Johnson & Johnson, Novartis, Amgen and the head of the Pharmaceutical Research and Manufacturers of America (PhRMA) lobbying group were present.
“US drug companies have produced extraordinary results for our country but the pricing has been astronomical for our country, we have to do better,” Mr Trump told them in the meeting.
“We have to get even better innovation, and I want you to move your companies back to the United States,” he said.
To help the firms, Mr Trump said his administration was “going to be lowering taxes big league”.
“We’re going to be getting rid of regulations that are unnecessary – big league,” he added.
Recently investors have been selling off their shares in drug following substantial criticism from Mr. Trump, backed by Democratic Senator Bernie Sanders over drug pricing.
Nevertheless, one of the top pharmaceutical executives welcomed Mr Trump’s proposals on Tuesday to cut taxes and loosen regulations.
“We believe if these policies are enacted, it will translate to up to 350,000 new jobs over the next 10 years as a result of growth in the biopharmaceutical industry,” said Stephen J. Ubl, chief executive of PhRMA.