President Donald Trump announced that his administration reached a deal with Pfizer as part of an effort to reduce pharmaceutical prices.
A White House fact sheet explains the agreement will provide “every State Medicaid program in the country access to [most-favored-nation] drug prices on Pfizer products” and “ensures foreign nations can no longer use price controls to freeride on American innovation by guaranteeing MFN prices on all new innovative medicines Pfizer brings to market.”
Pfizer will also “repatriate increased foreign revenue on existing products that Pfizer realizes as a result of the President’s strong America First U.S. trade policies for the benefit of American patients,” the fact sheet notes. The pharmaceutical company will further offer medicines at a discount off the list price when selling directly to U.S. patients.
President Trump said of the deal: “Pfizer has agreed to provide some of the most popular current medications to our consumers at heavily discounted prices anywhere between 50% and even 100%.”
A forthcoming government website, called TrumpRx, will provide lower drug prices directly to Americans.
“We are proud to join President Trump at the White House to celebrate this landmark agreement that is a win for American patients, a win for American leadership, and a win for Pfizer,” Pfizer CEO Albert Bourla said in a statement. “By working closely with the Administration, we are lowering costs for patients and enabling greater investment in the U.S. biopharmaceutical ecosystem by ending the days when American families alone carried the global burden of paying for innovation. This is about putting all patients first and ensuring America remains the world’s leading engine of medical breakthroughs.”
“We now have the certainty and stability we need on two critical fronts, tariffs and pricing, that have suppressed the industry’s valuations to historic lows,” he continued.
The deal expands upon Trump’s May executive order declaring that “Americans should not be forced to subsidize low-cost prescription drugs and biologics in other developed countries, and face overcharges for the same products in the United States.”
Americans should “have access to the most-favored-nation price for these products,” the order explains. “My Administration will take immediate steps to end global freeloading and, should drug manufacturers fail to offer American consumers the most-favored-nation lowest price, my Administration will take additional aggressive action.”
