AbbVie (ABBV) has reached a three-year deal with the Trump administration to reduce drug prices and invest $100 billion in U.S. research and development (R&D) and capital investments, including manufacturing, over the next decade in exchange for an exemption from certain tariffs.
The drugmaker will provide low prices in Medicaid and also expand direct-to-patient offerings through a government-run website, TrumpRx, for widely used medicines, including Alphagan, Combigan, Humira, and Synthroid.
The deal, which addresses all four of the President’s drug pricing priorities, was enabled by the Trump administration providing exemption from tariffs and future price mandates, AbbVie (ABBV) said, adding that further terms remain confidential.
The Trump administration has pushed drugmakers to cut prices, noting that U.S. consumers often pay nearly three times more for prescription drugs than patients in other developed countries.
In December, the administration reached pricing agreements with several major pharmaceutical companies—including Bristol Myers Squibb (BMY), Gilead Sciences (GILD), Amgen (AMGN), and Merck (MRK) —to lower cut prices of certain prescription drugs in the U.S.
Back in November, Novo Nordisk (NVO) and Eli Lilly (LLY) announced a major drug-pricing deal with the Trump administration, receiving relief from tariffs in exchange for lower prices for their branded medicines, including their popular weight loss drugs, in the U.S.
Among major drugmakers, Pfizer (PFE) and AstraZeneca (AZN) have already inked agreements with the White House to provide some of their prescription drugs at significant discounts to cash-paying customers through TrumpRx.
Source: Press Release