Trump Administration Secures Pfizer Deal to Lower US Drug Prices
In a significant move, the Trump administration has secured a deal with Pfizer to lower prescription drug prices in the US. The agreement, announced in July, follows letters sent by the US Administrative Director to 17 pharmaceutical companies, seeking similar commitments. Pfizer has agreed to offer preferred country pricing to Medicare and new drugs, with discounts averaging 50% on many of its treatments.
President Trump had threatened to impose tariffs on drugmakers earlier this year, aiming to persuade them to lower prices and increase US manufacturing. Pfizer's response to the administration's request has resulted in a deal that is expected to benefit patients without insurance coverage and help state budgets that fund Medicare programs. However, consumers may not see lower drug prices until 2026.
The extent of cost changes under this deal is not yet clear, as specific terms are being kept confidential. Pfizer has committed to investing $70 billion (€60bn) in domestic manufacturing facilities in the US over the next few years, which could potentially lead to increased domestic production and job creation. Other pharmaceutical companies have also responded to the administration's letters, declaring their commitment to offer preferred country pricing to Medicare and new drugs.
The Trump administration's efforts to reduce drug prices in the US, which can be up to three times higher than averages elsewhere, have taken a significant step forward with Pfizer's agreement. While the full impact of this deal on consumers remains to be seen, it is a notable development in the ongoing effort to make prescription drugs more affordable for Americans.
