Pfizer has announced a historic agreement with the Trump Administration that will ensure US patients pay lower prices for their prescription medicines.
In response to the four points covered in the President’s July 31st letter, Pfizer has voluntarily agreed to implement new drug pricing measures.
These are designed to ensure Americans receive comparable drug prices to those available in other developed countries and pricing newly launched medicines at parity with other key developed markets.
Pfizer will also participate in a direct purchasing platform, TrumpRx.gov, that will allow American patients to purchase medicines from Pfizer at a significant discount.
The large majority of the company’s primary care treatments and some select speciality brands will be offered at savings of, on average, 50%, but could also range as high as 85%.
Specific terms of the agreement remain confidential.
"We are proud to join President Trump at the White House to celebrate this landmark agreement that is a win for American patients, a win for American leadership and a win for Pfizer," said Albert Bourla, Chair and Chief Executive Officer of Pfizer.
"By working closely with the Administration, we are lowering costs for patients and enabling greater investment in the US biopharmaceutical ecosystem by ending the days when American families alone carried the global burden of paying for innovation."
"This is about putting all patients first and ensuring America remains the world’s leading engine of medical breakthroughs.”
Dr Bourla continued: "We now have the certainty and stability we need on two critical fronts, tariffs and pricing, that have suppressed the industry’s valuations to historic lows."
"We've agreed to a three-year grace period during which time Pfizer products under a Section 232 investigation won't face tariffs, provided we further invest in manufacturing in the United States."
"Additionally, we've established a balanced global pricing approach that continues to recognise the value of innovation while ensuring prices in the US and other developed countries are both reasonable and sustainable, maintaining the strength of the US market alongside other developed nations."
"This agreement allows us to invest even more boldly in the United States."
"We are committed to channelling unprecedented resources with an additional $70bn dedicated to US research, development and capital projects in the next few years."
"This builds upon our more than $83bn investment in American biotech innovation from 2018-2024, showing how we are strengthening our commitment at this pivotal moment by shaping the future of medicine with the pursuit of pioneering breakthroughs and ensuring the US remains the global hub for medical progress and improving lives."
With this agreement in place, Pfizer can now fully focus on delivering the next generation of cures, sharpening its focus in the areas where the company’s science, scale and agility can make the biggest difference for patients in areas such as oncology, obesity, vaccines and inflammation and immunology.