Pfizer to cut drug prices, announces $70 billion US investment, and discounted sales via TrumpRx

Core Insights - Pfizer Inc. is planning to announce measures to lower prescription drug prices, particularly for Medicaid patients, in collaboration with President Trump [1][2] - The initiative includes a "most favored nation" pricing model for select medicines and discounted direct-to-consumer sales through a government website called TrumpRx [2][3] - Pfizer will invest $70 billion in research, development, and domestic manufacturing, indicating a significant expansion of its US operations [4] Pricing Strategy - The "most favored nation" pricing policy will require Pfizer to reduce Medicaid prices and align US drug prices with those in other countries for future drugs [5] - Direct-to-consumer discounts will be available through the TrumpRx platform, allowing Americans to purchase certain high-volume drugs at government-negotiated rates [3][5] Government Support and Pressure - The White House has expressed strong support for the initiative, highlighting President Trump's efforts to lower healthcare costs compared to other political actions [5] - Trump's administration has previously sent letters to major drugmakers, including Pfizer, demanding compliance with pricing reductions by September 29 [6] Domestic Production and Tariffs - In addition to price reductions, the Trump administration is pushing for increased domestic production from drug manufacturers [7] - Plans have been announced to impose 100% tariffs on imported branded or patented drugs unless manufacturers establish production facilities in the US, with tariffs set to begin on October 1 [7]