President Donald Trump and drug manufacturer announced a deal Tuesday to lower certain drug prices.
The arrangement would bring American drug prices in line with the lowest paid by other developed nations, known as the ‘most-favored-nation’ price.
To all consumers at heavily discounted prices or anywhere between 50% and even 100%,” Trump said while speaking in the Oval Office.
Under the deal, every state Medicaid program will have access to most-favored-nation prices. Pfizer must offer medicines at a steep discount when selling to American patients. Plus, MFN pricing must be guaranteed to all new medicines Pfizer brings into the U.S.
No family should ever be forced to choose between filling a prescription and putting food on the table,” said Health & Human Services Secretary Robert F. Kennedy Jr.
The deal on Tuesday follows a letter Trump sent in July to over a dozen drugmakers, demanding they take steps to lower drug prices. Pfizer marks the first agreement with a major pharmaceutical company.
Some specific medications included in the deal are Eucrisa, a topical ointment for atopic dermatitis, which will be made available at an 80% discount to patients purchasing directly. Xeljanz, a widely used oral medication for rheumatoid arthritis, psoriatic arthritis, and ulcerative colitis, will be available at a 40% discount to patients purchasing directly. Also, Zavzpret, a commonly utilized treatment for migraines, will be sold directly to patients at a 50% discount. Pfizer CEO Albert Bourla said this “landmark” move is a big win for Americans.
There is no doubt about it. They are the ones that will see a significant impact in their ability to buy medicines,” Bourla said.
Trump also announced Tuesday a direct-to-consumer website called ‘TrumpRx’ which would allow people to pay cash for certain drugs, including some from Pfizer, at a discounted price.
These drugs will be available for direct purchase online at a website operated by the federal government,” Trump said.
The deal also includes a $70 billion investment from Pfizer to U.S. manufacturing and research, in return for a three-year tariff exemption. Trump added he will meet with other drugmakers next week.