Trump says firms to cut drug prices for tariff relief
US President Donald Trump said that Pfizer would reduce the price of all prescription drugs in the country’s Medicaid program for low -income ones and sell new prescription drugs with the price of the “most preferred nation” price in exchange for tariff relief.
Trump also said he expects other drug producers to follow the case.
US patients are currently paying about three times more than other developed countries for prescribed drugs, and Trump presses drug producers to reduce their prices in another place.
“The United States was subsidized by subsidizing the health services of the rest of the world, Tr Trump said, Pfizer CEO Albert Bourla, Health Secretary Robert F Kennedy Jr and others.
Pfizer is the first pharmaceutical company to announce an agreement.
In July, Trump sent a letter to 17 leading drugs, allowing them to reduce drug prices to complying with those paid abroad – a policy that the President calls the most preferred nation pricing.
Until September 29, he asked them to respond with binding commitments.
The White House also plans to offer a direct consumer website for the purchasing of drugs called TrumpPx for people in the United States.
Pfizer will start sales of some drugs directly to consumers through this website.
According to a poster exhibited at the event, pfizer rheumatoid arthritis drug Xeljanz, migraine treatment zavzpret, dermatitis Eucrisa and menopausal osteoporosis drugs Duvee, 40 percent to 85 percent will be available on the website.
Pfizer shares increased by 5 percent.
He said that the US had a one -on -one talks with companies, and that Kennedy said that at a cabinet meeting held last month, the trade secretary Howard Lutnick used the threat of tariffs in the industry for the additional leverage.
Launch prices of drugs in the United States have been increasing significantly in recent years.
Many new drugs enter the market as hundreds of thousands of dollars and lead to questions about whether patient benefits will touch the cost.
A Reuters analysis resulted in an average of USD $ 370,000 (A560,000) compared to $ 180,000 in 2021, more than twice the US prices for newly released drugs.
More than 70 million people are covered by the state and the federal government program Medicaid for low -income people.
There is 65 million people in the Medicare program of the government, which covers people aged 65 and over 65 or is not included in the announcement of Tuesday’s announcement.
Bourla also announced a 70 billion dollars of pressure on research and development and domestic production.
Bourla said, “We are ready to release our investment portfolio in this country. And the president gave us a three -year rejection period because we would not be subject to 232 tariffs as long as we move the products here”.
On September 25, Trump announced that a pharmaceutical company will apply 100 percent tariffs to branded or patented pharmaceutical products as of October 1, unless he built a production facility in the USA.
The US is conducting a national security investigation or 232 investigations to determine drug tariffs.
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