The Trump administration announced on Tuesday that Pfizer would receive a three-year delay on anticipated tariffs as part of an agreement where the pharmaceutical company would voluntarily reduce the prices of certain medications in the United States.
US President Donald Trump, accompanied by senior health officials, provided few specifics regarding the drugs covered by the agreement.
These announcements are part of Trump’s initiative to establish “Most Favoured Nation” pricing arrangements with drug manufacturers, which would require pharmaceutical companies to set US prices based on the lowest prices paid by other affluent nations.
The White House also indicated it would launch a website called TrumpRx, which would enable consumers to purchase some medications directly at reduced prices. Following the announcement, Pfizer’s stock surged by five percent.
Similar to Trump, Pfizer CEO Albert Bourla praised the agreement as a significant accomplishment, although the company’s statement was similarly lacking in details.
The company mentioned that a “large majority” of “primary care treatments and some selected specialty brands” could be available at discounts ranging from 50 per cent to 85 per cent.
Trump also said that Pfizer had committed to investing $70 billion to bring manufacturing operations back to the United States.
Democrats have consistently expressed a desire to reduce drug prices as well.
In a report issued on Monday, independent Senator Bernie Sanders noted that while Trump’s initiatives on this matter have garnered attention, they have achieved “little beyond that.”
