President Donald Trump's latest executive order aimed at lowering US drug prices by linking them to those of other nations is "light on details" but "surely exceeds" his authority, Roche's top drug executive said on Monday.
Trump's plan, which he called a "Most Favored Nation" order on Sunday, would pay a price for a drug that matches the lowest price paid among wealthy foreign governments.
Medicare, the US government healthcare program for seniors, is currently prohibited from negotiating prices it pays to drugmakers.
"This is really not the right way to go," Roche Pharmaceuticals division CEO Bill Anderson said on a call with investors.
"The fundamental problem with MFN, is it really brings the policies from other countries that don't support innovation, it just brings those into the US...The executive order, it's basically one page, it's light on details, but it surely exceeds the authority of an executive order."