Pfizer Strikes Historic Drug Pricing Deal with Trump Administration
Pfizer has agreed to lower drug costs in a deal with the Trump administration. This agreement involves providing lowest prices to Medicaid and signifies attempts to curb high drug prices. Trump's administration leverages tariffs to negotiate similarly favorable deals with other drugmakers, aiming to boost US manufacturing.
- Country:
- United States
In a landmark agreement, drugmaker Pfizer has committed to reducing drug costs following negotiations with the Trump administration, President Donald Trump announced on Tuesday. The deal, unveiled at the White House alongside Pfizer CEO Albert Bourla, aims to address rising drug prices by offering Medicaid the lowest prices across developed nations.
The initiative is part of Trump's broader strategy to lower drug costs in the United States, previously encouraging drugmakers to voluntarily reduce prices or risk imposition of tariffs. Although the specifics of the pricing cuts remain unclear, the agreement promises positive implications for uninsured patients and state budgets supporting the Medicaid program.
Besides committing to reduced pricing, Pfizer has also pledged a USD 70 billion investment in domestic manufacturing. This move aligns with President Trump's vision to bolster US drug production, with negotiations already underway with other pharmaceutical giants to create similar deals.
(With inputs from agencies.)
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