The White House on Tuesday announced the launch of a direct-to-consumer website called TrumpRx, through which Pfizer (NYSE:PFE) has agreed to sell four of its prescription medicines, including its blockbuster arthritis drug Xeljanz, at up to an 85% discount.
In addition to Xeljanz, which will be available at a 40% discount, the New York-based company has agreed to offer discounts ranging from 50% to 85% for its dermatitis drug Eucrisa, osteoporosis therapy Duavee, and migraine therapy Zavzpret.
The drugs will be available through Medicaid for cash-paying customers, with other leading drugmakers, including Eli Lilly (LLY), also expected to join the initiative.
During an event at the White House attended by Pfizer (NYSE:PFE) CEO Albert Bourla, President Donald Trump announced the agreement as part of his most-favored-nation (MFN) pricing policy, which requires drugmakers to lower U.S. drug prices in line with those in other developed nations.
Bourla said that PFE will also invest an additional $70B in the U.S. as part of the agreement and added that in exchange, the White House has agreed to provide the company with a three-year grace period on tariffs as part of an ongoing national security investigation related to pharma imports.
“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,” Bourla noted as PFE stock added ~6%, on track to record its biggest intraday gain since May 2024.
Dear readers: We recognize that politics often intersect with the financial news of the day, so we invite you to click here to join the separate political discussion.