Donald Trump, Pfizer seal the deal to cut U.S. drug prices

U.S. President Donald Trump announced a deal with Pfizer to reduce prescription drug costs in the United States on Tuesday.Under the agreement, all new Pfizer drugs will be launched at  the most favored nation price, which aligns U.S. prices with the lowest paid in comparable countries.

The administration will also introduce TrumpRx, a direct-to-consumer platform that will allow Americans to purchase certain Pfizer drugs without insurance.

Trump had earlier asked 17 major pharmaceutical companies to commit to lowering prices, and Pfizer is the first to publicly agree to the same.The letters called for drugmakers to commit by Monday to offering what Pfizer agreed to: most-favored-nation pricing to Medicaid and new medications.

Health and Human Services Secretary Robert F. Kennedy Jr., who joined Trump, Bourla and others at the White House, applauded the president as he touted the deal.

“Americans should not be gouged paying 300 or 400 or 1,000% more than people in other countries for the exact same drug,” he said.

Trump has claimed that the U.S., with its higher drug prices, subsidises care in other countries.

On Thursday, Trump announced a move that could raise future drug prices: 100% import taxes on branded drugs starting Wednesday. Those tariffs would not apply to companies building U.S. manufacturing plants or to generic medications.

Drugmakers in the past couple of years have started launching websites to connect customers directly with some products like Lilly’s obesity treatment Zepbound or the blood thinner Eliquis from Pfizer and Bristol-Myers Squibb. That comes as patients have grown more comfortable with receiving care virtually after the practice exploded in popularity during the coronavirus pandemic.

(With AP inputs)