On Friday, local time, US President Trump announced an agreement with nine pharmaceutical companies, the latest in a series of deals aimed at lowering drug prices for some Americans. These companies will agree to reduce prices for certain federal government programs and patient-paid medications.
These companies say they will reduce U.S. drug prices to levels comparable to those in other wealthy countries—where prices are typically much lower. In return, they will receive a three-year exemption from potential new tariffs, backed by the U.S. government.
Trump announced the agreements at the White House on Friday, with the CEOs of nine companies in attendance. The stocks of the companies involved rose in response.
Trump stated, "Starting next year, drug prices in the United States will drop significantly and rapidly, and will soon become one of the lowest among developed countries."
Trump also pointed out, "As of today, 14 of the 17 largest pharmaceutical companies have agreed to significantly reduce drug prices, benefiting the American people and American patients. This is undoubtedly the biggest victory in the history of American healthcare in terms of patient affordability, and every American will benefit from it."
Previously, in August of this year, Trump sent a letter to 17 global pharmaceutical giants, urging them to drastically reduce drug prices in the United States. At the time, Trump issued an ultimatum threatening that if these companies refused to cooperate, he would "use every means to protect American families from the continued abuse of drug pricing."
Prior to the nine pharmaceutical companies that recently reached an agreement, the Trump administration had already reached an agreement with Pfizer. Five pharmaceutical companies, including AstraZeneca, reached similar drug pricing agreements. Eli Lilly... and Nord The two pharmaceutical companies have also agreed to lower the price of their best-selling weight-loss drugs. price.
Pharmaceutical companies that announced new agreements on Friday include: Amgen GlaxoSmithKline Sanofi Merck Gilead Sciences Roche's Genentech, Novartis, and Bristol-Myers Squibb And Boehringer Ingelheim.
Trump has consistently tried to project an image of his administration helping Americans concerned about the affordability of medicines, describing these agreements as contributing to lower drug prices. For pharmaceutical companies, these agreements offer both the avoidance of hefty tariffs and greater certainty regarding U.S. drug pricing policy. Pharmaceutical stocks have risen significantly since Pfizer reached a similar agreement in September.
Some businesses said the price cuts would slightly impact revenue, but they had already offered significant discounts on Medicaid.
Under the terms of the agreement, the "most-favored-nation" prices offered by pharmaceutical companies will apply to the U.S. Medicaid program (for low-income patients), direct-to-patient services (including the planned TrumpRx.gov platform), and newly marketed drugs in the future.
Merck announced that it will offer the diabetes drugs Januvia and Janumet to eligible U.S. patients at a cash price 70% lower than their current list price through a direct-to-patient program.
Amgen announced that it will sell its migraine prevention drug Aimovig for $299 per month, a discount of nearly 60% from the current list price.
Some of the companies in the new agreement also agreed to donate key ingredients for certain medicines to the national stockpile for use in national emergencies. GlaxoSmithKline will donate a six-month supply of inhaled respiratory medication, and Bristol-Myers Squibb will donate a six-month supply of the anticoagulant Elertor. Bristol-Myers Squibb also stated that it will provide Elertor free of charge to the Medicaid program.
The latest commitment also means that 14 of the 17 pharmaceutical companies targeted by Trump this summer have agreed to lower drug prices for low-income and disabled patients under Medicaid, sell discounted drugs directly to consumers, and launch new drugs in the United States at the same prices as abroad.
The three companies that have not yet announced an agreement with the government are AbbVie. Johnson & Johnson Regeneron Pharmaceuticals However, all three companies have confirmed that they are currently negotiating with the White House, and Trump has stated that they still need to make price concessions to avoid tariffs.
U.S. Commerce Secretary Howard Lutnick said they will announce a similar agreement after the holidays, as the president plans to launch the TrumpRx website in the new year, where discounted medicines will be sold.
(Article source: CLS)
