The Trump administration has introduced a new initiative that enables patients to purchase prescription drugs at reduced prices through a government-operated website called TrumpRx. This agreement, reached with pharmaceutical company Pfizer, will allow certain medications to be offered at discounts of up to 85%. Additionally, Pfizer has committed to lowering prices for the Medicaid program, which provides health coverage for low-income Americans, in exchange for avoiding tariffs on its products.
This announcement follows President Trump’s declaration of a 100% tariff on branded and patented drug imports set to take effect on October 1. Pfizer is the first pharmaceutical company to finalize a deal after the President sent letters to 17 drug firms over the summer, demanding lower drug prices—a deadline for which recently expired.
During a press conference, President Trump mentioned policies aimed at aligning U.S. drug prices with those in other countries. He emphasized that Pfizer would provide its medications to Medicaid at “most-favored nations” prices, which he suggested would significantly reduce costs for the program. Trump also indicated that further agreements with additional pharmaceutical companies are anticipated.
In its statement, Pfizer noted that most of its primary care drugs would be available on the TrumpRx platform, though it did not specify which medicines would be included. The company also announced plans to invest $70 billion in U.S. manufacturing, research, and development. Pfizer’s agreement is seen as a way for it to avoid Trump’s tariffs on branded drugs for a three-year period.
The price reductions could potentially influence drug prices internationally, as some companies, like Eli Lilly, have indicated they may raise prices in other markets to accommodate lower prices in the U.S. However, it remains uncertain whether the new website will effectively lower costs for American consumers, given the role of insurance companies and other intermediaries in the pricing structure.
Source: https://www.bbc.com/news/articles/cgmze0pe8vxo?at_medium=RSS&at_campaign=rss