Pfizer's Bold Drug Pricing Strategy: The Trump Effect
President Donald Trump announced Pfizer's plan to cut Medicaid drug prices and introduce a 'most favored nation' pricing for new drugs in return for tariff relief. Pfizer aims to offer significant discounts on specific drugs via the upcoming TrumpRx consumer website, as U.S. drug prices soar.
In a significant move, President Donald Trump declared that Pfizer would reduce the prices of all prescription drugs within the Medicaid program, which supports low-income Americans. This initiative is part of a broader agreement where Pfizer will offer their new drugs at 'most favored nation' prices in exchange for tariff relief.
The announcement comes amidst mounting pressure on drugmakers to align U.S. drug prices with global standards. Currently, U.S. patients face prescription costs nearly triple those in other developed nations. Trump, alongside Pfizer CEO Albert Bourla and Health Secretary Robert F. Kennedy Jr., emphasized this change at a White House event.
Additionally, the White House plans to introduce a direct-to-consumer website, TrumpRx, facilitating online drug purchases. Pfizer will discount drugs such as Xeljanz and Zavzpret on this platform. Meanwhile, Pfizer's shares rose 5% to $25.05, and the company's investment in research and manufacturing is set to surge by $70 billion.
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