Pfizer announced yesterday an agreement with the Trump Administration aimed at lowering prescription medicine prices in the United States and strengthening the country’s position in biopharmaceutical innovation.
In response to the four points outlined in the President’s letter on 31 July, Pfizer has agreed to implement measures to ensure Americans pay drug prices comparable to those in other developed nations. Newly launched medicines will be priced at parity with key developed markets. Pfizer will also participate in TrumpRx.gov, a direct purchasing platform allowing American patients to buy Pfizer medicines at discounted rates. Savings will average 50 per cent, with some treatments offered at discounts of up to 85 per cent. The majority of primary care treatments and select specialty brands will be included. Specific terms of the agreement remain confidential.
Albert Bourla, Chairman and Chief Executive Officer of Pfizer, said, “We are proud to join President Trump at the White House to celebrate this landmark agreement that is a win for American patients, a win for American leadership, and a win for Pfizer. By working closely with the Administration, we are lowering costs for patients and enabling greater investment in the U.S. biopharmaceutical ecosystem by ending the days when American families alone carried the global burden of paying for innovation. This is about putting all patients first and ensuring America remains the world’s leading engine of medical breakthroughs.”
Dr Bourla added, “We now have the certainty and stability we need on two critical fronts, tariffs and pricing, that have suppressed the industry’s valuations to historic lows. We’ve agreed to a three-year grace period during which time Pfizer products under a Section 232 investigation won’t face tariffs, provided we further invest in manufacturing in the United States. Additionally, we’ve established a balanced global pricing approach that continues to recognize the value of innovation while ensuring prices in the U.S. and other developed countries are both reasonable and sustainable, maintaining the strength of the U.S. market alongside other developed nations. This agreement allows us to invest even more boldly in the United States – fuelling growth, creating jobs, and returning manufacturing home. Our U.S. workforce of 31,000 colleagues, supported by 13 manufacturing and distribution sites and 7 major R&D facilities, underscores Pfizer’s vital role in building a stronger American economy.”
Pfizer confirmed that it will commit an additional $70 billion in resources for U.S. research, development and capital projects in the coming years. This follows the company’s $83 billion investment in American biotech innovation between 2018 and 2024.
According to Pfizer, the agreement allows the company to focus on the next generation of cures in oncology, obesity, vaccines, inflammation and immunology.