Pfizer signs pact with the Trump Administration that will ensure U.S. patients pay lower prices for their prescription medicines while strengthening America’s role as the global leader in biopharmaceutical innovation. Specific terms of the agreement remain confidential.
In response to the four points covered in the President’s July 31st letter, Pfizer has voluntarily agreed to implement measures 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 specialty brands will be offered at savings that will range as high as 85% and on average 50%.
Medicines like Eucrisa, a topical ointment for atopic dermatitis, will be made available at an 80% discount to patients purchasing directly. Xeljanz, a widely used oral medication for rheumatoid arthritis, psoriatic arthritis, and ulcerative colitis, will be available at a 40% discount to patients purchasing directly. Zavzpret, a commonly utilized treatment for migraines, will be sold directly to patients at a 50% discount.
Trump administration suggested that, according to recent data, the prices Americans pay for brand-name drugs are more than three times the price other organization for Economic Cooperation and Development nations pay, even after accounting for discounts manufacturers provide in the U.S. The United States has less than five percent of the world’s population, yet roughly 75% of global pharmaceutical profits come from American taxpayers.
President Trump says, “In case after case, our citizens pay massively higher prices than other nations pay for the same exact pill, from the same factory, effectively subsidizing socialism aboard [abroad] with skyrocketing prices at home. So we would spend tremendous amounts of money in order to provide inexpensive drugs to another country. And when I say the price is different, you can see some examples where the price is beyond anything — four times, five times different.”
“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, Chairman and Chief Executive Officer of Pfizer. “By working closely with the Administration, we are lowering costs for patients and enabling greater investment in the U.S. 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 recognize the value of innovation while ensuring prices in the U.S. and other developed countries are both reasonable and sustainable, maintaining the strength of the U.S. market alongside other developed nations.
We are committed to channeling unprecedented resources with an additional USD 70 billion dedicated to U.S. research, development and capital projects in the next few years. This builds upon our more than USD 83 billion 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 U.S. remains the global hub for medical progress and improving lives.”
With this agreement in place, Pfizer can 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 like oncology, obesity, vaccines, and inflammation and immunology.
