Trump Trade: Trump strikes deals with nine drugmakers to cut prices

Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump with this daily recap compiled by The Fly.

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.

ANNOUNCEMENT: President Trump is scheduled to make an announcement with Secretary of Defense Pete Hegseth and the secretary of the Navy on Monday afternoon in Palm Beach, Florida, the New York Times reports. The White House did not provide details. The event comes days after Trump signed a $900B defense policy bill, and amid rising tensions between the United States and Venezuela, the publication notes.

PRICE CUTS: U.S. President Donald Trump said in an announcement on Friday that he plans to convene a meeting with major insurance companies in the near future to press them to reduce prices. He argued that the vast sums paid to insurers, which he described as reaching into the trillions of dollars, should instead go directly to consumers, and warned that companies should move on their own to significantly reduce prices. Trump said the meeting would take place either at the White House or in Florida. Publicly traded companies in the space include CVS Health (CVS), Centene (CNC), Cigna (CI), Elevance Health (ELV), Humana (HUM), Molina Healthcare (MOH) and UnitedHealth (UNH).

CONTRACT: Velo3D (VELO) has entered into an Other Transition Agreement contract with the U.S. Department of War’s Defense Innovation Unit in support of a major weapon system program of record. The contract, with a total value of $32.6M, supports DIU’s Foundry for Operational Readiness and Global Effects or “Project FORGE.”