Trump calls for broad drug price cuts in executive order

WASHINGTON, May 12 (Reuters) - U.S. President Donald Trump plans to sign a wide-reaching executive order on Monday directing drugmakers to lower the prices of their medicines to align with what other countries pay.

White House officials said the government will give drugmakers price targets in the next 30 days, and will take further action to lower prices if those companies do not make "significant progress" towards those goals within six months of the order being signed.

Investors were skeptical about the order's implementation, and shares, which had been down overnight on the threat of "most favored nation" pricing recovered and rose in early morning trade on Monday.

The United States pays the highest prices for prescription drugs, often nearly three times more than other developed nations. Trump tried in his first term to bring the United States in line with other countries but was blocked by the courts.

If drugmakers do not meet the government’s expectations, it will use rulemaking to bring drug prices to international levels and consider a range of other measures, including importing medicines from other developed nations and implementing export restrictions, a copy of the order showed.