Trump’s administration announced on Tuesday an agreement that Pfizer provided three years of retribution from the planned tariffs, while the pharmaceutical giant undertook to voluntarily reduce the prices of unspecified drugs for US consumers.
President Donald Trump announced an agreement on a land agreement with Pfizer to reduce prescription drugs for Medicaid and promises similar agreements with other drug manufacturers in the coming weeks.
“I can’t tell you how big it is,” Trump said in the White House during the event with the CEO of Pfizer Albert Bourla. “We turn the tide and reverse the unfair situation.”
The announcement comes just hours before the potential shutdown of the government, in the middle of guerrillas on health care and federal expenditure.
Pfizer offers prices “most popular”
By agreement, Pfizer Medicaid will provide the most popular prices of nations, which means that the company charges the lowest prices it offers in other developed countries. This agreement also ensures that this price model will apply to all new drugs listed in the US.
“The United States is carried out by health care subsidies of the rest of the world,” Trump added, emphasizing the goal of his administration to reduce the costs for the Americans.
Bourla appreciated the agreement and said, “We turn the tide and reverse the unfair situation.” He emphasized the company’s commitment to invest $ 70 billion in research, development and domestic production.
Direct-to-Consumer: TrumpPrx Platform
As part of the agreement, Pfizer will participate in the new Trumpx administration website, which will allow Americans to buy drugs directly from manufacturers. Trumprx is expected to be launched in 2026 and Pfizer plans to offer discounts on average 50%, with some drugs considering savings of up to 85%.
The highlighted drugs include:
Xeljanz (rheumatoid arthritis) – price for more than $ 6,000/month
Duavee (post-Menopausal osteoporosis)
Bourla noted that Pfizer received a three -year delay period that liberated its products from tariffs, depending on the transfer of production to the US.
Background: Trump’s pressure on drug manufacturer
This agreement follows the May Regulation, which orders drug manufacturers to voluntarily reduce prices or face new government limits. At the end of July, Trump sent letters 17 to the main pharmaceutical companies and asked for binding obligations to reduce prices by September 29.
Pfizer is the first drug manufacturer to complete the agreement, and Trump signals other agreements in the near future.
Price changes will affect Medicaid, which covers more than 70 million Americans with low income. However, Medicare, which covers older adults and people with disabilities, has not been included in this announcement.
Medicare’s drug expenditures were $ 216 billion in $ 2021, while gross Medicaid expenditure was around $ 80 billion. New prices within the agreement are scheduled for effect in 2026.
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