Prescription drug prices for Americans could drop sharply after President Donald J. Trump announced nine new agreements with major pharmaceutical companies to bring U.S. prices in line with the lowest paid by other developed nations.
The White House said the agreements apply a most-favored-nation pricing model and represent the largest move so far to lower drug costs for American patients.
The deals involve Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis, and Sanofi. Together, the companies agreed to reduce prices on drugs used to treat conditions such as diabetes, rheumatoid arthritis, multiple sclerosis, asthma, COPD, HIV, hepatitis B and C, and certain cancers.
Under the agreements, every state Medicaid program will gain access to most-favored-nation pricing for drugs made by the nine companies. The administration said that change will result in billions of dollars in savings and strengthen Medicaid for vulnerable patients.
The agreements also require companies to prevent foreign countries from benefiting from U.S. innovation through price controls. Any increased foreign revenue tied to U.S. trade policies must be repatriated for the benefit of American patients.
Patients who purchase medications directly through TrumpRx will see some of the largest reductions. Amgen will cut the price of Repatha from $573 to $239. Bristol Myers Squibb will lower Reyataz from $1,449 to $217. Boehringer Ingelheim will drop Jentadeuto from $525 to $55. Genentech will reduce Xofluza from $168 to $50.
Other reductions include Gilead Sciences lowering Epclusa from $24,920 to $2,425, GSK cutting the price of Advair Diskus 500/50 from $265 to $89, Merck reducing Januvia from $330 to $100, and Novartis lowering Mayzent from $9,987 to $1,137. Sanofi will reduce Plavix from $756 to $16 and list its insulin products at $35 per month through TrumpRx.
The announcement also includes commitments to invest in domestic manufacturing. The nine companies plan to invest at least $150 billion collectively in U.S. facilities in the near term. Several manufacturers will also donate active pharmaceutical ingredients to the Strategic Active Pharmaceutical Ingredients Reserve to reduce reliance on foreign supply chains.
Those contributions include albuterol from GSK, apixaban tablets from Bristol Myers Squibb, and ertapenem from Merck for emergency preparedness.
The White House said the agreements build on actions taken earlier in the year, including a May executive order directing federal agencies to pursue most-favored-nation pricing and follow-up letters sent to drugmakers in July. Since late September, the administration has announced 14 drug pricing deals tied to the policy.
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