Pfizer agrees to lower drug prices, invest $70 bn in U.S. under Trump administration deal

Core Points - Pfizer has agreed to lower drug costs under a deal with the Trump administration, which includes most-favoured-nation pricing for Medicaid and guarantees on pricing for newly launched drugs [1][4][10] - Trump emphasized the significance of this agreement, stating it could lead to similar deals with other drugmakers [2][8] - The deal includes a commitment from Pfizer to invest USD 70 billion in domestic manufacturing facilities in the U.S. [8][9] Drug Pricing and Policy - The agreement aims to match the lowest drug prices offered in other developed nations, potentially benefiting Medicaid patients and uninsured individuals [4][6] - Trump has been advocating for lower drug prices for months, threatening tariffs to encourage drugmakers to comply with pricing reductions [5][10] - The U.S. prices for brand-name drugs can be up to three times higher than averages in other countries, prompting calls for drugmakers to adopt similar pricing strategies [10][11] Impact on Patients and Market - Lower drug prices could alleviate costs for patients with no insurance coverage, who often lack negotiating power [6] - The announcement comes amid a federal government shutdown and ongoing debates over healthcare costs between Democrats and Republicans [2][13] - Drug prices in the U.S. are influenced by various factors, including competition and insurance coverage, with most individuals shielded from high costs through employer-sponsored or government programs [13]