White House announces deal with Pfizer for ‘most-favored-nation pricing’

President Donald Trump announced the “first agreement with a major pharmaceutical company,” Pfizer (PFE), to bring American drug prices in line with the lowest paid by other developed nations, the White House announced. “The agreement will provide every State Medicaid program in the country access to MFN drug prices on Pfizer products, resulting in many millions of dollars in savings and continuing President Trump’s historic efforts to strengthen the program for the most vulnerable. The agreement ensures foreign nations can no longer use price controls to freeride on American innovation by guaranteeing MFN prices on all new innovative medicines Pfizer brings to market. The agreement requires Pfizer to repatriate increased foreign revenue on existing products that Pfizer realizes as a result of the President’s strong America First U.S. trade policies for the benefit of American patients. The agreement requires Pfizer to offer medicines at a deep discount off the list price when selling directly to American patients,” a White House fact sheet stated. Other publicly traded companies in the space include AstraZeneca (AZN), Bristol Myers (BMY), Eli Lilly (LLY), GSK (GSK), Johnson & Johnson (JNJ), Merck (MRK), Novartis (NVS), Roche (RHHBY) and Sanofi (SNY).