President Donald Trump is set to sign a $1.9 billion order Tuesday aimed at curbing the costs of drugs in the United States.
The Drug Enforcement Administration, which oversees the nation’s drug supply, has announced the new policy in response to a spike in generic drug prices.
The agency plans to launch a pilot program that would test new and less expensive generic drugs for a month to evaluate their efficacy and safety.
The goal is to see whether the cost of a generic drug falls below $10 per pill.
According to the agency, the pilot program is intended to ensure generic drugs can be found in drugstores and pharmacies across the country.
The Trump administration announced the drug policy last month after its first year in office, in a move to cut the costs drug companies face in bringing new drugs to market.
The drug pricing increase is expected to have a positive impact on drug prices for consumers, according to the president’s transition team.
Trump said last month that the drug pricing initiative was aimed at helping the government “get drugs to people at lower cost and reduce costs to drug companies.”
The Drug Policy Alliance, a nonprofit group that advocates for drug policies, said in a statement that the new plan “provides relief to Americans and to the taxpayers of the United Stated by giving drug companies a temporary boost in profits.
This is exactly the kind of reform that President Trump and his administration have been promising for years.”
“We applaud the president for signing the policy, but we also hope the president will continue to push for a bipartisan approach to controlling drug prices and ensure that we don’t have to pay the price of prescription drugs that millions of Americans can no longer afford,” said John Gaskin, executive director of the Drug Policy Action Coalition.
“We expect the new rules to be implemented quickly, with the administration taking steps to ensure that the program has broad support.
Drug companies have been using this program for decades, and they’ve shown no signs of slowing down.”