Merck KGaA, a German integrated science, pharmaceutical, and technology company with a significant market presence in the U.S., is the latest pharmaceutical company to enter a drug discount arrangement with the Trump administration.
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The company joins rivals U.S.-based Pfizer (PFE) and British pharmaceutical heavyweight AstraZeneca (AZN), which previously made similar arrangements in exchange for tariff exemptions.
On Thursday, President Donald Trump announced during a White House press conference that Merck’s U.S. subsidiary, EMD Serono, has agreed to cut the prices of its popular fertility medicines in exchange for future tariffs on the pharma industry. An additional condition is that the company double down on its pharmaceutical production in the U.S.
Merck Agrees to 84% Discount on Fertility Drugs
Specifically, Merck noted that eligible American patients with prescriptions will receive an 84% discount off the list price when they use all three of its in-vitro fertilization (IVF) medicines — Gonalf-Ff, Ovidrel, and Cetrotide — during their IVF protocol. Merck also plans to sell the fertility drugs directly to Americans and will join TrumpRx, a site being planned by the Trump administration to sell medicines at discounted prices.
The arrangement fulfills one of Trump’s campaign promises to make IVF more affordable for Americans. Gonalf-f, whose price Trump said is 700% higher in the U.S. than in other parts of the world, is the most prescribed follicle-stimulating hormone (FSH) in the U.S., according to Merck.
In fertility treatments, medications like Gonal-f help to stimulate multiple follicles — tiny fluid-filled sacs in the ovary that contain immature eggs called ‘oocytes’ — to increase the chances of natural conception. Merck noted that more than 10 million American women are struggling to have a baby.
Merck to Get Speedy Review for Pergoveris
Meanwhile, as part of the deal, Merck will also get priority review for its medication Pergoveris, cutting the evaluation period from around 12 months to just about two months. Pergoveris, which helps women produce eggs in the absence of sufficient required hormones, has already been approved in 74 countries, Merck said.
The new deal comes as Trump has been campaigning for American pharmaceutical companies to lower drug prices while deploying tariffs as a strategy. Merck is one of 17 major pharmaceutical companies to which Trump wrote a letter earlier in July, where he also made the demand.
Pharma Companies Make Proactive Moves
While Pfizer and AstraZeneca — and now Merck — have made direct, discounted drug pricing deals with Trump targeted at the Medicaid program, other pharmaceuticals that are not yet onboarded to such arrangements have nevertheless begun launching direct sales to customers at lower prices.
This includes Swiss pharmaceutical company Roche (RHHBY) for its flu pill Xofluza and U.S.-based Amgen (AMGN) for its cholesterol-lowering injection Repatha.
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