This executive order calls for lowering prescription drug prices for American consumers. It states that drug manufacturers deeply discount their products in order to access foreign markets but subsidize that decrease with high prices in the United States. The order directs the secretary of commerce to communicate most-favored-nation price targets to pharmaceutical manufacturers to bring their prices for American patients in line with comparably developed nations. If that does not result in significant progress towards most-favored-nation pricing for American patients, the secretary of commerce is directed to propose a rulemaking plan to impose most-favored-nation pricing, as well as taking other steps to lower the price of drugs, such as use of the Sherman Antitrust Act and the Federal Trade Commission Act against anti-competitive practices of drug companies.

If the administration is not able to reduce drug prices by communicating its most favored nation price targets to pharmaceutical manufacturers, the pharmaceutical manufacturers will probably challenge any attempts by the administration to impose most-favored-nation pricing.