On Friday, the White House announced that nine additional pharmaceutical companies have agreed to follow President Trump’s “most favored nation” (MFN) drug pricing policy, with some donating months of emergency drug supplies.
Latest Agreements
The deals are the latest in a series announced by the White House to lower drug prices so they match what other countries pay.
Trump’s Praise
Trump said at an Oval Office press conference: “This represents the greatest victory for patient affordability in the history of American health care, by far.” He added: “The pharmaceutical companies were difficult, but they also love our country. They knew it was unfair, but they were great.”
CEOs Thanked
During a White House event, Trump thanked by name the CEOs of Amgen, Boehringer Ingelheim, Bristol Myers Squibb, Genentech, Gilead Sciences, GlaxoSmithKline, Merck & Co., Novartis and Sanofi.
Industry Response
The executives praised Trump and his efforts at bringing down prices, despite the industry’s longstanding opposition to what they consider price controls. Drugmakers have been eager to strike voluntary deals with the administration to avoid punitive action, like tariffs that could cut deeply into their profits.
A senior administration official said: “This is no longer a trickle. This is a flood. MFN has gone from a bold policy to an industry standard, and it’s happened in record time.” They added: “What we’ve observed is initial industry hesitance collapsing into cooperation.”
Medicaid Impact
The companies announced on Friday will lower the Medicaid prices for drugs that are more expensive than they’re sold in other countries. A senior administration official said about 30 to 40 percent of Medicaid drugs would be impacted. The actual impacts of the agreements are not known, as details have largely been kept confidential. Most-favored-nation pricing could have a negligible impact on Medicaid patients because the program already guarantees the lowest price offered to any commercial payer.
Broader Agreements
Trump has publicly reached deals with 14 of the 17 drugmakers to which he sent letters in July demanding lower prices. Trump said all 17 companies have reached agreements, but will be announced later.
MFN Policy Details
Trump’s MFN policies, enacted through an executive order signed in May, require the secretary of Health and Human Services to facilitate “direct-to-consumer purchasing programs for pharmaceutical manufacturers that sell their products to American patients at the most-favored-nation price.” MFN prices reflect the lowest price a pharmaceutical company sells its product for globally. Other drugmakers including Pfizer, AstraZeneca, Eli Lilly and Novo Nordisk have previously struck deals with the Trump administration to offer MFN pricing.
Donations to Strategic Reserve
Some of the nine companies announced Friday will donate several months’ worth of their medications to the Strategic Active Pharmaceutical Ingredients Reserve. Merck will donate six months’ worth of a powerful broad spectrum antibiotic, Bristol Myers Squibb will donate six months’ worth of apixaban better known as Eliquis, and GSK will donate six months’ worth of the asthma medication albuterol. A senior administration official said: “What makes this particularly unique is these manufacturers are not only donating this [active pharmaceutical ingredient], they’re also agreeing to convert these raw ingredients into finished medications when needed during emergencies, and to help distribute them to the Americans that need them most.”
TrumpRx Platform
The drugmakers are expected to offer some of their products on a forthcoming direct-to-consumer platform called TrumpRx, which the administration says will allow patients to purchase drugs at lower prices and bypass insurance companies. Injectable and infusion products will not be available on the platform, according to a senior administration official who said it would not be “clinically appropriate” to have these products available without a clinical provider being involved.
Key Takeaways
- Nine new pharma companies have joined the MFN pricing policy and pledged emergency drug supplies.
- About 30-40 % of Medicaid drugs will see price reductions under the new agreements.
- The agreements also include donations of months-worth of medications to the Strategic Active Pharmaceutical Ingredients Reserve.
On Friday, the White House announced a significant expansion of its MFN drug pricing strategy, bringing nine more pharmaceutical companies into the program and securing emergency drug supplies for future crises.
