Fourteen Major Pharma Companies Sign Landmark Drug Pricing Agreement with White House

On December 19 local time, Trump announced an agreement with Amgen, Boehringer Ingelheim, BMS, Genentech, Gilead, GSK, Merck, Novartis, and Sanofi. These nine pharmaceutical giants have agreed to lower drug prices in the United States, aligning U.S. drug prices with the lowest prices among other high-income countries.

"Starting from next year, drug prices in the U.S. will drop significantly and rapidly, soon becoming one of the lowest among developed countries," Trump emphasized. In the past few months, pharmaceutical companies such as Pfizer, AstraZeneca, Merck, Eli Lilly, and Novo Nordisk have already 'bowed their heads.'

So far, 14 of the 17 large pharmaceutical companies that Trump wrote to in July have signed price reduction agreements,Only AbbVie, Johnson & Johnson, and Regeneron Remain in Negotiations。

The Core Logic of Trump Administration's Push for Drug Price Reform: The "Most Favored Nation Price" Principle. According to the agreement terms, the “most favored nation” prices offered by pharmaceutical companies will apply to the U.S. Medicaid program (for low-income patients), direct-to-patient services (including the planned TrumpRx.gov platform), and newly launched drugs in the future.

From the core terms of the agreement, it mainly includes four aspects: First, the price adjustment mechanism, pharmaceutical companies must offer drug price discounts for low-income and disabled individuals covered by the Medicaid program, with discounts on some drugs reaching as high as 80%-90%; Second, new drug pricing rules, the initial launch price of all newly marketed drugs in the U.S. must not exceed that in other affluent countries; Third, sales channel reform, pharmaceutical companies are required to sell drugs directly to consumers at discounted prices on the TrumpRx platform; Fourth, production investment commitment, pharmaceutical companies participating in the agreement pledge to invest at least $150 billion in the U.S. to expand production and research and development.

It is worth noting that these agreements also includeSupply Chain Security ClauseAccording to the agreement, companies such as Merck, Bristol-Myers Squibb, and GlaxoSmithKline agreed to donate a six-month supply of critical active pharmaceutical ingredients to the U.S. Strategic API Reserve (SAPIR) and committed to producing finished drugs in emergencies. This arrangement not only secures the U.S. drug supply but also provides pharmaceutical companies with the opportunity to receive government support during emergencies.

Merck announced that it will offer the diabetes drugs Januvia and Janumet to eligible U.S. patients at a cash price 70% lower than the current list price through a direct-to-patient program.

Amgen said it will sell the migraine prevention drug Aimovig for $299 per month, nearly 60% lower than the current list price.

GSK will donate a six-month supply of respiratory inhalers.

Bristol-Myers Squibb will donate a six-month supply of the anticoagulant Eliquis. Bristol-Myers Squibb also stated that it will provide Eliquis free of charge to the Medicaid program.

According to the agreement, the patient throughTrumpRxThe following drugs will enjoy a significant price reduction when purchased through the channel:

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