On Tuesday, Pfizer Inc. (NYSE:PFE) announced a historic agreement with the Trump Administration to ensure U.S. patients pay lower prices for their prescription medicines.
President Donald J. Trump announced the first agreement with a major pharmaceutical company, Pfizer, to bring American drug prices in line with the lowest paid by other developed nations (known as the most-favored-nation, or MFN, price), the White House said in a statement.
The White House stated that more than 100 million patients affected by diseases treated with Pfizer medicines are expected to benefit from President Trump's successful negotiation of lower prices.
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Eucrisa, a topical ointment for atopic dermatitis, will be available at an 80% discount for patients purchasing directly. Xeljanz, used for rheumatoid arthritis, psoriatic arthritis, and ulcerative colitis, will be offered at a 40% discount, while Zavzpret, a common treatment for migraines, will be sold directly to patients at a 50% discount.
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, allowing American patients to purchase medicines from Pfizer at a significant discount.
Most of the company’s primary care treatments and some select specialty brands will be offered at savings ranging as high as 85% and, on average 50%. Specific terms of the agreement remain confidential.
Pfizer has agreed to a three-year grace period during which Pfizer products under a Section 232 investigation won’t face tariffs, provided the company further invests in manufacturing in the United States.
Pfizer said it is committed to channeling resources with an additional $70 billion dedicated to U.S. research, development, and capital projects in the next few years, building upon more than $83 billion investment between 2018 and 2024.
“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…”
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.
Price Action: PFE stock was trading higher by 5.45% to $25.15 at last check Tuesday.
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