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The letters demand US drug prices match or undercut global lows, triggering a 60-day compliance timeline, and prompting strategic responses from players in the space, including Celltrion.
As reported by Pharma Commerce sister publication, Pharmaceutical Executive,1 President Trump recently issued letters to 17 of the largest pharmaceutical companies, expressing urgency for making changes along the drug pricing front.
These letters stem from an executive order (EO) he enacted in May1 that essentially proclaimed that pharma companies need to treat the United States as a most-favored nation (MFN) as it pertains to drug pricing. The EO notes that US drug prices need to be less than or equal to the drug’s lowest price in other nations, as a way of establishing fairness.
The letters were published to Trump’s Truth Social account and were sent to:
The letters—which all have the same wording—explain what he looks to accomplish from the MFN order while providing a timeline for the next 60 days (Sept. 29) that they have to comply.
This includes extending MFN pricing to Medicaid; guaranteeing MFN pricing for newly-launched drugs; returning increased revenues abroad to American patients and taxpayers; and providing for direct purchasing at MFN pricing.
The involved companies are recommended to engage with both Sec. Kennedy and Administrator Oz in order to make those changes.
Celltrion, a South Korean pharmaceutical company that was not included on Trump’s list, issued a couple of letters of its own via its homepage,2 in response to Trump’s 17 letters and the US tariff response strategy.
“As previously explained in our May 21 website announcement, this initiative appears to be primarily targeted at high-cost drugs that impose a burden on US patients,” explained in its 17-letter response letter. “Since Celltrion already supplies products at competitive prices and promotes price competition through biosimilars, we do not expect our products to be directly affected.
“Moreover, if the MFN pricing policy leads to reduced prices for expensive originator drugs, the current environment—where originals are prioritized in formularies—is expected to shift toward more direct competition with biosimilars, thereby expanding prescription opportunities for our biosimilar portfolio.”
Tariff mitigation strategy: Celltrion’s three-tiered plan
Regarding the US tariff strategy, Celltrion left three levels of responses: short-term, mid-term, and long-term.
Short-term involves the completed stockpiling of two years’ worth of inventory within the United States, while mid-term consists of growing contracts and business with local CMOs in order to allow for domestic production in the United States.
The long-term response is that it is currently pursuing the purchase oflarge-scale cGMP manufacturing plant in the United States from an unnamed pharma company. The facility produces biologics that are used as autoimmune disease and cancer treatments.
Celltrion considers itself the frontrunner for acquiring the facility in a deal that is expected to close in early October.
“Upon completion of the acquisition, the facility is expected to eliminate all future tariff-related risks for our pharmaceutical products. This involves completing the acquisition of a local manufacturing facility, which represents a fundamental solution to the tariff issue,” the letter explained.
According to Celltrion's founder and chief executive, Seo Jung-jin, the company plans to financially commit $503.78 million toward the acquisition and operation of the plant; there is also potential for it to make another investment ranging from $216.06 million to $503.78 million depending on what ensues with the US tariff, according to Reuters.3
A complete breakdown off the pharma tariffs can be read here.4
References
1. Holland M. President Trump Issues Letters to 17 Major Pharma Companies Demanding Action on Most-Favored-Nation Order. Pharmaceutical Executive. August 1, 2025. Accessed July 31, 2025. https://www.pharmexec.com/view/president-trump-letters-17-most-favored-nation-order
2. Celltrion homepage. https://www.celltrion.com/en-us
3. South Korea's Celltrion Says Tapped to Buy US Pharma Factory to Offset Tariff Risk. Reuters. July 28, 2025. Accessed Aug 1, 2025. https://www.reuters.com/business/healthcare-pharmaceuticals/south-koreas-celltrion-says-tapped-buy-us-pharma-factory-offset-tariff-risk-2025-07-29/
4. Saraceno N. As Trump Pharma Tariff Deadline Looms, Here's How the Sector Got Here. Pharmaceutical Commerce. July 31, 2025. Accessed August 1, 2025. https://www.pharmaceuticalcommerce.com/view/trump-pharma-tariff-deadline-looms-how-sector-got-here
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