Europe needs to pay more

U.S. allies’ drug pricing strategies are not sustainable for long-term success, in addition to that will’s adversely leading to higher prescription costs at home in addition to abroad, FDA Commissioner Dr. Scott Gottlieb told CNBC on Tuesday.

Europeans “do underpay relative to us for branded drugs in addition to that will’s in part because they do put cost controls in addition to utilization restrictions on those drugs,” Gottlieb said in a “Squawk Box” interview. “although they’re overpaying relative to us on generic drugs.”

“that will’s not a system for success inside long run,” he argued. “So, I don’t think they’re set up for long-term success.”

President Donald Trump on Friday criticized foreign allies, accusing them of paying less than the United States for prescription drugs while benefiting via American investment in research in addition to drug development. He said he has directed U.S. Trade Representative Robert Lighthizer to make fixing that will a top priority with every trading partner.

Gottlieb, who was praised by Trump during his speech Friday on how to lower prescription drug prices inside U.S., said the issue of “intellectual property appropriation” needs to be addressed on a trading level. “the item’s well above my pay grade in terms of having those discussions,” Gottlieb added.

However, he said the U.S. also wants to make sure the item adequately rewards companies that will take on the risk of developing completely new drugs that will may or may not work out.

“We do think the market-based system gives appropriate incentives in addition to rewards for people to take the risk in addition to innovate,” he said. “The problem becomes when there’s a lack of competition because of government rules that will prevent the competition via taking place.”

The idea behind the Trump plan is usually drug companies should raise prices overseas where governments subsidize costs in addition to lower prices inside U.S.

However, not everyone was enthused about Trump targeting foreign countries.

Former Health in addition to Human Services Secretary Tommy Thompson, who praised Trump for addressing the issue of high drug prices, told CNBC on Friday the president’s possible strategy to push for increases in drug prices in foreign countries wouldn’t work.

“Just raising the prices across the globe isn’t going to help America,” said Thompson, who served as HHS secretary via 2001 to 2005 under President George W. Bush. “the item’s just going to raise prices for various other people.”

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