The president’s most-favored-nation pricing initiative now has 14 of the world’s top 17 drug manufacturers in agreement.
WASHINGTON—President Donald Trump announced agreements with nine of the largest pharmaceutical companies to offer drugs to Americans at lower prices during a Roosevelt Room ceremony on Dec. 19.
“This represents the greatest victory for patient affordability in the history of American health care, by far, and every single American will benefit,” Trump said while flanked by executives representing the manufacturing giants.
“So, this is the biggest thing ever to happen on drug pricing and on health care. This will have a tremendous impact on health care itself.”
The deals with Amgen, Bristol Myers Squibb, Genentech, Merck, and five others will reduce costs for treatments related to autoimmune diseases, cancer, diabetes, and other disorders.
Trump’s drive to obtain most-favored-nation pricing has now brought 14 of the 17 biggest drug manufacturers into the initiative after AstraZeneca, EMD Serono, Novo Nordisk, Lilly, and Pfizer signed deals earlier this year.
“What was once considered impossible is now a reality,” a senior administration official told reporters during a briefing on Friday. “This is what bold leadership delivers.”
Support for the president’s pricing plan is gaining momentum among pharmaceutical company executives.
“What we’ve observed is initial industry hesitance collapsing into cooperation,” the official said. “It’s gone from a bold policy to an industry standard, and it’s happened in record time.”
“Most-favored-nation” pricing, directed by the president with an executive order in May, will ensure that Americans pay the same price or lower than in other developed countries.
“The days of American families subsidizing cut-rate drugs for the rest of the world are ending,” the official said.
Trump noted that 4 percent of the world’s population resides in the United States, yet 75 percent of pharmaceutical company profits come from the region.
“That’s why I signed an executive order instructing my administration to do everything in its power to slash prescription drug prices for Americans while getting other countries to pay more,” he said, adding at the end of the meeting that he will convene insurance companies soon to discuss further cost-savings efforts.
