Merck strikes agreement with U.S. Government, plans DTC program

Merck (MRK) announced it reached an agreement with the Trump administration to “ensure its prescription medicines are both accessible and affordable for Americans. This agreement enables Merck to continue its long-standing commitment to develop and deliver life-changing medicines and vaccines, and ensure Americans have access to those innovations at lower costs,” the company said. Merck said in a statement that it plans to provide key products through a direct-to-patient program at affordable prices for eligible patients in the U.S. This currently includes JANUVIA, JANUMET and JANUMET XR, and will be expanded in the future to include enlicitide decanoate following FDA approval. JANUVIA, JANUMET and JANUMET XR will be available to eligible American patients at a cash price – approximately 70% off of the current list price – through a direct-to-patient program. Additionally, the company reached an understanding with the U.S. Department of Commerce to delay Section 232 tariffs for three years, enabling the company to make investments in the United States to reshore manufacturing for American patients. Merck also said it has accelerated its commitment to U.S. innovation and manufacturing, building on its 15 manufacturing and R&D facilities and a strong workforce in the U.S. of more than 30,000. “The company has invested over $12 billion in U.S. manufacturing since 2017 and $81 billion in U.S.-based R&D since 2018, supporting tens of thousands of American jobs. Over the next several years, Merck will invest more than $70 billion in capital and R&D spending, including at least $12 billion in capital expenditures, to drive long-term growth and strengthen the U.S. position as a global leader in biopharmaceutical innovation. This includes Merck’s recent announcements of manufacturing facilities in Virginia, Kansas and Delaware, which alone will create 1,200 full-time jobs and support 15,000 construction jobs,” it added.