The chief executive of eye-care company Alcon Inc. (ALC.US) has cautioned that the Trump administration's effort to align U.S. drug prices with those in other countries could lead to some medications disappearing from the European market. David Endicott warned that because many innovative products are sold at lower prices abroad, and the White House wants American prices to match those levels, some companies may prefer to avoid selling in Europe altogether rather than accept price reductions in the vast U.S. market.

In an interview on Monday, Endicott explained that this approach implies "different prices outside the U.S. will be negotiated by the U.S." He added, "We are trying to maintain access as broadly as possible, but we obviously also have a responsibility to shareholders." Alcon, a Swiss eye-care company that manufactures surgical equipment, contact lenses, and pharmaceuticals, reached a drug pricing agreement with the U.S. government in late August alongside nine other pharmaceutical and biotech firms. The deal ensures Alcon's medications remain available to American patients while Washington seeks to tie U.S. drug prices to those in other developed nations.

Endicott noted, "Every market develops its own reimbursement system, its own negotiation mechanism, and we do this globally. As we negotiate prices as usual, we will continue to move forward worldwide and figure out what this means."

Notably, a study published in The Lancet on Sunday found that the Trump administration's push to lower U.S. drug spending actually creates a powerful incentive for pharmaceutical companies to raise prices and reduce drug availability in other parts of the world. The findings echo Endicott's warning. Researchers discovered that for roughly three-quarters of the drugs studied, if companies charged Medicare lower prices, their lost U.S. revenue would exceed the total sales generated in the lower-priced countries used as new benchmarks. As a result, drugmakers may hike prices in some nations or exit those markets entirely.

Some companies are already leveraging the U.S. pricing policy as leverage to demand higher prices elsewhere. For instance, Astellas Pharma said it secured a higher price for a new eye-care drug in Japan this year due to concerns over Trump's pricing policies. Meanwhile, in Europe, some firms are scaling back plans. Biogen CEO Chris Viehbacher stated earlier this year that the company would launch its new postpartum depression treatment Zurzuvae in only a few European countries. Roche Holding has indicated it may never introduce an unapproved breast cancer pill in its home market of Switzerland.