The Trump Administration has reached agreements with 16 pharmaceutical companies aimed at lowering drug prices for American consumers through a strategy known as the Most Favored Nation (MFN) pricing model. This approach requires that the prices of medicines in the United States align with the lowest prices in other developed nations. These agreements are expected to have a substantial impact on the pharmaceutical landscape and patient access to medications.
Overview of Agreements and Impact
Under this initiative, the White House has negotiated voluntary agreements with various biopharmaceutical firms to ensure compliance with MFN principles. The repercussions of these deals could dramatically alter patient expenses and operational procedures within pharmacies. According to Ned Milenkovich, PharmD, JD, a principal at Much Shelist, P.C., “These initiatives could change what patients pay and how pharmacies operate.”
The agreements span a range of medications, including treatments for chronic diseases, fertility therapies, and specialty drugs. Below is a summary of the key arrangements made by prominent companies.
Pfizer was the first to announce its agreement, committing to lower prices on a majority of its primary care treatments. This includes significant drugs like atorvastatin (Lipitor) and nirmatrelvir/ritonavir (Paxlovid), with potential savings ranging from 50% to 85%. Details regarding specific drugs included in the TrumpRx purchasing platform are still pending.
AstraZeneca has also joined the initiative, offering direct-to-consumer (DTC) sales of prescriptions for chronic diseases at an 80% discount off list prices. The company will delay certain tariffs for three years and intends to shift its manufacturing operations to the United States.
Significant Contributions from Major Companies
EMD Serono plans to enhance access to in vitro fertilization (IVF) therapies, offering discounts of up to 84% for patients using a standard IVF protocol. This initiative is contingent upon continued investment in U.S. biopharmaceutical manufacturing.
Eli Lilly’s agreement is particularly noteworthy, as it includes provisions that Medicare beneficiaries will pay no more than $50 per month for medications like tirzepatide (Zepbound) once approved by the FDA. LillyDirect will provide a multidose pen priced at $299, a significant reduction compared to current market prices.
Novo Nordisk is focusing on its weight loss drug, semaglutide, which will be available at reduced prices for Medicare Part D and Medicaid patients through a pilot program.
Amgen has expanded its DTC program to encompass treatments like erenumab-aooe (Aimovig) and adalimumab-aato (Amjevita), offering these injectable therapies at discounted prices expected to be 60% to 80% lower than their current list prices.
Boehringer Ingelheim has pledged to lower medication costs for American patients and invest $10 billion in pharmaceutical research and development in the U.S. by 2028.
Bristol Myers Squibb has committed to providing apixaban (Eliquis) at no cost to Medicaid recipients, alongside a donation of more than 7 tons of the drug’s active ingredient to the U.S.
Genentech aims to lower drug costs for state Medicaid patients and will offer many medications at prices comparable to other wealthy nations.
Gilead Sciences has responded by pricing select medications for HIV and hepatitis at levels reflecting other developed countries, while launching a DTC program for sofosbuvir/velpatasvir (Epclusa) at a discounted cash price.
Companies like GSK and Merck have also made commitments, with GSK promising to lower drug prices for Medicaid patients and Merck offering discounts of up to 70% on select diabetes medications.
Sanofi’s agreement will bring an average price reduction of 61% for drugs treating diabetes, cardiovascular, and neurological conditions, accessible through the TrumpRx platform.
Johnson & Johnson has pledged to participate in the DTC TrumpRx platform, enabling lower-cost medications for Americans, while AbbVie plans to expand its DTC offerings and invest $100 billion in U.S.-based research and development.
These agreements exemplify the administration’s effort to reshape drug pricing in the U.S. and enhance access to essential medications for millions of Americans. With the potential for significant savings, these partnerships may redefine the pharmaceutical industry’s approach to pricing and patient care.
