Announcing an agreement with Pfizer (NYSE:PFE) to offer all brand-name drugs marketed by the company at lower prices to U.S. consumers, President Donald Trump said on Tuesday that his administration is negotiating with other pharma majors to win similar deals.
Trump said that the New York-based pharma giant is expected to sell its prescription drugs at reduced prices consistent with his most-favored-nation (MFN) pricing policy, which ties U.S. drug prices to those in other developed nations.
Pfizer (NYSE:PFE) drugs will be available via a federally run website to Medicaid, a healthcare program backed by the government and states, Trump said, adding that “it will have a huge impact on bringing the Medicaid cost down.”
Additionally, Trump announced that the COVID-19 vaccine maker has agreed to provide some of its “most popular” medications at a 50% – 100% discount from the list price and “in some cases even more than that.”
The company has also agreed to invest $70B to boost its domestic manufacturing network and fund R&D activities, Trump said, adding that “we are working with other major pharmaceutical companies to secure similar agreements.”
Trump made the remarks at a White House event attended by Pfizer (NYSE:PFE) CEO Albert Bourla, top government officials, including Health and Human Services Secretary Robert F. Kennedy, Jr., and the administrator of the Centers for Medicare & Medicaid Services, Mehmet Oz.
His announcement came after a 60-day ultimatum issued by Trump to leading drugmakers to lower their U.S. drug prices in line with the MFN policy ended on Monday.
Trump set the deadline in July through letters addressed to CEOs of 17 major pharma companies, including Pfizer (PFE), Lilly (LLY), Merck (MRK), Gilead (GILD), Bristol Myers (BMY), J&J (JNJ), Regeneron (REGN), Amgen (AMGN), and AbbVie (ABBV).
CEOs of European drugmakers Merck KGaA (OTCPK:MKGAF), Sanofi (SNY), GSK (GSK), AstraZeneca (AZN), Novo Nordisk (NVO), Roche (OTCQX:RHHBY), and Novartis (NVS) also received the missives.