New Participants Join Drug Pricing Program
President Trump’s “Most Favored Nation” drug pricing initiative has gained traction, with nine additional pharmaceutical companies signing on. This brings the total number of participating firms to 14 out of the 17 largest drug manufacturers in the industry.
The latest additions include GlaxoSmithKline, Merck, Sanofi, Amgen, Boehringer Ingelheim, Bristol Myers Squibb, Genentech, Gilead, and Novartis.
During a press event at the White House attended by executives from these companies, Trump declared this development as a significant milestone for patient affordability in American healthcare. He emphasized that every American would benefit from these changes.
The agreements will enable lower prices for medications sold to government programs and directly to U.S. consumers through a forthcoming platform called TrumpRx.gov, set to launch early next year.
A senior administration official revealed that these new agreements represent over $150 billion in commitments for manufacturing and research and development within the United States.
The official noted that what began as hesitance among industry players has transformed into collaboration. The “Most Favored Nation” policy is now viewed as an industry standard achieved in record time.
The participating drugmakers have committed to selling their products to Medicaid at the agreed-upon MFN prices. In return for these deals, they will receive three years of tariff relief and may benefit from expedited approvals or reviews.
This initiative is described as a proactive measure against pharmaceutical vulnerabilities during emergencies such as natural disasters or pandemics. Several manufacturers are also contributing active pharmaceutical ingredients (APIs) to a national reserve.
Cari Gallman, Executive Vice President at Bristol Myers Squibb, announced that the company would provide its widely prescribed blood thinner Eliquis to Medicaid free of charge.
The president has consistently pointed out that Americans pay significantly more for medications compared to other countries. He signed an executive order earlier this year aimed at implementing the “Most Favored Nation” program to combat what he termed global freeloading.
Government data indicates that Americans currently pay approximately three times more than individuals in other affluent nations within the Organization for Economic Cooperation and Development (OECD) for brand-name drugs, even after accounting for discounts offered by manufacturers.
This announcement follows previous agreements with other major manufacturers such as Pfizer, AstraZeneca, EMD Serono, Novo Nordisk, and Eli Lilly. Johnson & Johnson, AbbVie, and Regeneron remain as the last three companies yet to finalize deals; however, Trump indicated that Johnson & Johnson would likely join soon.
