Trump’s Attempt to Make Drugs Cheaper Is Pushing Up Prices in Other Countries

For the past few years, Swiss oncologist Christoph Renner has treated blood cancer patients with Lunsumio, a new drug that helps the immune system recognize and destroy malignant cells. Then, last summer, Renner got an email from Roche Holding AG, Lunsumio’s manufacturer, informing him the treatment would no longer be available in Switzerland because health insurers there wouldn’t pay for the infusions. “You see what’s possible,” says Renner, a professor at the University of Basel, “and then you’re told you can’t use it.”

The move was a response to rules President Donald Trump introduced that force drugmakers to reduce their prices in the US to the lowest level paid in other developed countries. In Switzerland, new medications typically cost far less than in the US, so in theory Americans should benefit from the change. The problem is, instead of bringing prices down in the US, pharmaceutical companies are raising them elsewhere.