Pfizer Inc on Tuesday secured a reprieve from US President Donald Trump’s long-threatened tariffs on the pharmaceutical industry by agreeing to slash some of its drug prices by up to 85 percent and selling directly to the US public, a move other major drugmakers are expected to follow.
Pfizer said it would ensure Americans receive comparable prices to those offered in other countries and would launch new medicines at parity, addressing a key Trump complaint that Americans unfairly shoulder the highest medical costs in the world.
In exchange, the company gained a three-year grace period from widely anticipated pharmaceutical tariffs that the Trump administration has been promulgating.
Photo: AFP
It is the latest example of the transactional nature of winning tariff exemptions from Trump, who has unilaterally wielded trade policy to exert power over multiple industries. As recently as last week, he threatened 100 percent tariffs on the pharmaceutical industry.
Similar deals could be forthcoming. Eli Lilly & Co said it is in discussions with the Trump administration to further expand patient access, as the announcement on Tuesday underscores the urgency of making medicines more affordable.
The latest deal appears to resolve two major threats facing Pfizer. It averts more damaging pricing policies on medicines, while shielding the company from tariffs tied to the administration’s Section 232 investigation into whether drug costs represent a national security threat.
The deal is a boon for Pfizer chief executive officer Albert Bourla, who has struggled to replace flagging sales of COVID-19 vaccines and therapies that were in high demand during the pandemic. It also yielded rare praise from US health officials, who previously criticized the CEO and his company.
“Albert and I have had a long history of antipathy and antagonism toward each other,” US Secretary of Health Robert F. Kennedy Jr said. “But I have to say his leadership in this took tremendous courage, and he really created a template for corporate responsibility, for putting public health ahead of his individual interests.”
Pfizer is to offer a large majority of its primary care treatments and some specialty brands at discounts of up to 85 percent — and at an average of 50 percent off — on a direct-to-consumer Web site called TrumpRx. The initiative is intended to allow Americans to pay for prescriptions at discounted rates that are negotiated by the government.
Pfizer also plans a US$70 billion push on research and development, and domestic manufacturing over the next few years, Bourla said.
The company did not specify which of its medicines would be made available on TrumpRx, but said the majority of its primary care drugs would be offered on the site.
Pfizer’s top-selling drugs include the blood-thinner Eliquis, the pneumonia vaccine Prevnar, and a shot and pill for COVID-19.
Most pharmaceutical companies declined to comment on the Pfizer news or did not return inquiries seeking comment.
Merck & Co said it is committed to working with the administration, and supports rising foreign prices and lowering US prices. Novo Nordisk A/S said it engaged in discussions with the administration, and is focused on improving patient access and affordability.
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