Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Denver news in your inbox
Catch up on the most important stories affecting your hometown with Axios Denver
Des Moines news in your inbox
Catch up on the most important stories affecting your hometown with Axios Des Moines
Minneapolis-St. Paul news in your inbox
Catch up on the most important stories affecting your hometown with Axios Twin Cities
Tampa Bay news in your inbox
Catch up on the most important stories affecting your hometown with Axios Tampa Bay
Charlotte news in your inbox
Catch up on the most important stories affecting your hometown with Axios Charlotte
Trump talks to reporters at the White House Friday. Photo: Alex Wong/Getty Images
President Trump told reporters Friday that he plans to issue an executive order creating a "favored nations clause," where the U.S. would pay no more for a drug than the lowest price paid by another country.
Why it matters: There are a lot of details that are unclear, such as how the order would be enforced and how much of a difference it would make. But it's a sign that Trump wants to use his executive authority to move ahead on his campaign promise to lower drug prices — and a bad sign for drug companies.
Transcript of Trump's remarks, per the White House pool report:
"We're going to be announcing something very shortly, a favored nations clause. As you know, for years and years other nations paid less for drugs than we do. Sometimes by 60-70 percent.
"We're working on it right now, we're working on a favored nations clause, where we pay whatever the lowest nation’s price is.
"Why should other nations — like Canada — but why should other nations pay much less than us. They've taken advantage of the system for a long time, pharma.
"But we're working on right now a favored nations clause, so that whatever the lowest nation is anywhere in the world, or company, but the lowest nation or company, then what happens is, we will pay that amount. And that’s being worked on right now. We're gonna do it in the form of an executive order."