Core Insights - Pfizer has reached a "Most-Favored-Nation Price" agreement with the U.S. government, promising discounts of up to 85% and an average of about 50% on drugs for American patients, while receiving tariff exemptions and policy facilitation in return [1][3] - The U.S. drug pricing system is shifting from a market-driven model to one with more direct government involvement, reflecting a broader trend in drug price governance [1][3][7] Group 1: Historical Context - The U.S. drug pricing mechanism has traditionally relied on free pricing and market regulation, with the 2003 Medicare Modernization Act prohibiting direct government negotiation on drug prices, leading to high drug costs [2][3] - The Inflation Reduction Act (IRA) of 2022 marked a significant policy shift, granting Medicare the authority to negotiate drug prices, which has resulted in price reductions of 38% to 79% for the first ten negotiated drugs [3][4] Group 2: Policy Developments - The TrumpRx platform, set to launch in 2026, aims to provide discounted prices through government-led direct purchasing, using the "Most-Favored-Nation Price" principle to narrow the price gap between the U.S. and other developed countries [5][6] - The U.S. drug price reform is expected to influence global pharmaceutical pricing strategies, potentially leading to a shift from regional pricing to fair pricing based on clinical value and cost-effectiveness [6][7] Group 3: Implications for the Pharmaceutical Industry - The adjustment in U.S. drug pricing policies may challenge multinational pharmaceutical companies' profit margins, prompting a transition towards original innovation among Chinese pharmaceutical firms [6][7] - The experience gained by Chinese companies in volume-based procurement and healthcare negotiations may provide them with a competitive advantage in the emerging global trend of value-oriented procurement [6][7]