The order pushes drug companies to reduce drug prices in the United States to fall in line with other countries around the world.

This means is that if a company is charging ‘X’ for a particular medicine in a particular country and charging ‘2X’ in the US, they will have to bring down the price by 50% in the American market immediately. Hence, the executive order is expected to have a ripple effect on pharma markets globally.

President Donald Trump wants drugmakers to work with his federal health department to reach an agreement on a most favored nation price for their medicines.