Trump to Announce Deal with Pfizer to Lower Drug Prices
President Donald Trump will announce Tuesday that his administration has reached an agreement with Pfizer to voluntarily sell its drugs at lower prices, according to a White House official.
Details of the Agreement
The official, however, did not specify which drugs would be affected or by how much. Nor was it clear whether the lower prices would be available only for people on government insurance such as Medicaid or those with private insurance.
Pfizer’s Drug Portfolio
Pfizer, among the largest drugmakers in the U.S., makes a range of drugs, including the blood thinner Eliquis, the cancer drug Ibrance, and the Covid vaccine.
Broader Efforts to Reduce Drug Prices
The deal is part of Trump’s broader effort to implement a “most favored nation” pricing model for prescription drugs, meaning that the U.S. pays no more than the lowest prices charged in other wealthy countries.
Executive Order and Plan
In May, Trump signed an executive order outlining the initiative, which directed federal officials to pursue a plan that would tie the amount the government pays for certain drugs to the prices paid overseas.
Key Points of the Deal
Pfizer — the first drugmaker to announce a deal under the plan — will “reduce prices across the board,” a White House official said.
The company will also sell its drugs on a “direct to consumer” website called “TrumpRx,” the official said.
The company will also announce a $70 billion investment in research and development and domestic manufacturing, the official said.
Reaction and Context
Pfizer did not immediately respond to a request for comment.
Prescription drugs prices are notoriously higher in the U.S. than in other wealthy countries.
A 2022 survey by KFF, a nonpartisan health policy research group, found 3 in 4 U.S. adults say the cost of medications is unaffordable.
Conclusion
The agreement between Trump’s administration and Pfizer marks a significant step towards reducing drug prices in the U.S. While details of the deal are still emerging, it is clear that this initiative aims to make prescription medications more affordable for Americans. The success of this model will be closely watched, both by the pharmaceutical industry and by consumers who stand to benefit from lower drug prices.
FAQs
Q: Which drugs will be affected by the price reduction agreement between Pfizer and the Trump administration?
A: The specific drugs affected have not been detailed by the White House or Pfizer.
Q: Will the price reductions apply to all consumers, including those with private insurance?
A: It is not clear at this time whether the lower prices will be available to all consumers or only those on government insurance programs.
Q: What is the "most favored nation" pricing model?
A: This model means the U.S. would pay no more than the lowest price charged for a drug in other wealthy countries.
Q: How much will Pfizer invest in research and development and domestic manufacturing?
A: Pfizer will announce a $70 billion investment in these areas.
