Trump announces pacts with nine pharma companies to lower drug prices

U.S. President Donald J. Trump announced nine new agreements with major pharmaceutical companies to lower prescription drug prices for Americans in line with the lowest prices paid by other developed nations, known as the most-favored-nation, or MFN, price. The nine manufacturers include Amgen (AMGN), Bristol Myers Squibb (BMY), Boehringer Ingelheim, Genentech (RHHBY), Gilead Sciences (GILD), GSK (GSK), Merck (MRK), Novartis (NVS), and Sanofi (SNY). The agreements reduce prices on drugs that treat numerous costly and chronic conditions, including type two diabetes, rheumatoid arthritis, multiple sclerosis, asthma, chronic obstructive pulmonary disease, hepatitis B and C, human immunodeficiency virus, and certain cancers, among others. The agreements will provide every State Medicaid program in the country access to MFN drug prices on products made by the nine companies. The agreements ensure foreign nations can no longer use price controls to free ride on American innovation by guaranteeing MFN prices on all new innovative medicines the nine companies bring to market, according to the White House. The agreements require the nine companies to repatriate increased foreign revenue on existing products that they realize as a result of the President’s strong America First U.S. trade policies for the benefit of American patients. The agreements also require the nine companies to offer medicines at a deep discount off the list price when selling directly to American patients through TrumpRx.