14 out of the 17 largest pharmaceutical companies have now agreed to drastically lower drug prices for their American patients for the American people and patients at heavily discounted most favored nations prices. In other words, whatever the drug sells for in the world, whatever the lowest number is, if it's Germany, if it's in UK, anywhere, we will match that price. Right now, sometimes it's 10 times higher and every single American will benefit.This will have a tremendous impact on health care itself. S ...

Core Points - President Donald Trump announced that Pfizer has agreed to reduce prices for drugs sold to the Medicaid program [1] Group 1 - The U.S. has been criticized for overpaying for prescription medications [1] - The agreement with Pfizer is part of a broader initiative to lower drug prices for consumers [1]

Drug Pricing - Drug prices are higher in America compared to other developed countries [1] - The president's prescription changes the globalized pharma industry model [1] Potential Impact - The policy shift could lead to unintended consequences for the pharma industry [1]

Drug prices are higher in America than elsewhere in the rich world. But the president’s two-point prescription upends a model that has long underpinned the highly globalised pharma industry, which could have unintended effects https://t.co/NOn45u66p7 ...

Heard on the Street: It’s becoming increasingly clear that pharmaceutical companies can live with Trump’s tariffs. What the industry can’t live with is uncertainty on drug prices https://t.co/dHfDkd2Z43 ...

Industry Impact - Pharmaceutical companies can adapt to Trump's tariffs [1] - The pharmaceutical industry faces significant challenges due to uncertainty regarding drug prices [1]

Financial Performance & Cost Reduction - Pfizer reported exceeding its initial cost reduction program for the year and announced an additional 17 billion USD cost reduction plan, with 12 billion USD impacting administrative, marketing, and selling expenses by 2027, and 500 million USD reinvested in R&D [3] - Pfizer experienced 10% revenue growth this quarter, but revenue growth has been volatile due to the fluctuating impact of COVID-19 [3][4] - New products and recently acquired products contributed 47 billion USD in the first half of the year, growing at 15% [5] Operational Strategy - Pfizer is focusing on productivity enhancement and margin expansion through focus on key priorities and leveraging technology, particularly AI, to simplify business processes and reduce waste [1][2] - Pfizer aims to streamline operations by eliminating less important activities and concentrating on core strengths [2] Regulatory & Political Landscape - The CEO of Pfizer has a special relationship with the US President, particularly stemming from collaboration during the COVID-19 crisis, and has discussed the impact of middlemen on drug prices [8][9] - The US President aims to secure better deals on drug pricing, expressing concern that other countries pay less [10] - The US President is considering tariffs, potentially reaching 250%, on imports, but may phase them in and allow a grace period due to the long lead times required for pharmaceutical manufacturing site completion (over 4 years) [11][12][13] - The pharmaceutical industry is engaging in discussions with the US President regarding the "most favored nations" pricing clause and potential mitigation plans [17] - Generics account for over 90% of prescriptions in the US and are the cheapest globally, but patients may still pay more due to the insurance system [19][20] - Pfizer has a significant manufacturing presence in the US, with 13 sites, including 11 manufacturing plants [20] - The impact of tariffs depends on the product and how customs authorities define the country of origin, considering both API origin and final product location [19][21]