The Trump administration announced deals with nine additional pharmaceutical companies to provide drugs at reduced prices on Friday, expanding the president’s “most favored nation” drug pricing initiative.
The administration has now struck deals with 14 pharmaceutical companies, out of the 17 large drug manufacturers Trump has specifically called for deals with.
“This is the biggest thing having to do with drugs in the history of the purchase of drugs,” Trump said. “Starting next year American drug prices will come down fast and furious.”
Trump has been advocating for most-favored-nation pricing, in which companies commit to not charging higher prices for drugs in the U.S. than they do in peer nations, since his first term.
After signing an executive order earlier this year demanding pharmaceutical companies acquiesce to his demands, he issued threats of 100% tariffs and strongly worded letters to major drug manufacturers in an effort to bring companies to heel.
The companies that have made new deals with the administration are Amgen, Boehringer Ingelheim, Bristol Myers Squibb, Genentech, Gilead Sciences, GSK, Merck, Novartis and Sanofi.
All future drugs released by the companies will be launched at most favored nation prices across commercial Medicare, Medicaid and cash-paying markets, a senior administration official said.
The Centers for Medicare and Medicaid have designated MFN prices to be equal to “the second lowest country-specific manufacturer-reported net price, adjusted by gross domestic product per capita using a purchasing power parity method.”
Like the other companies the administration has made deals with, the nine new companies will also commit funding — over $150 billion combined — to new investment commitments in manufacturing and research in the U.S.
Not all the drugs manufactured by the companies will be available on TrumpRx.gov, the drug deal aggregating website the administration announced earlier this year, an administration official said. But the website is on track to be launched in the new year, they added.
Earlier this month, Democratic senators wrote to pharmaceutical companies that had struck deals with the administration, asking for “specific pricing information on which drugs will be affected” by Trump’s announcements. Democrats have been skeptical that these announcements are actually bringing about change to drug pricing.
Historically, Republicans have opposed “most favored nation” pricing, which they have billed as “price controls.” But some Republicans in the Senate have come around to the policy in recent months.
Per the administration, some companies will also donate ingredients to the Strategic Active Pharmaceutical Ingredients Reserve, a stockpile of drug ingredients maintained by the federal government in case of emergencies.
Trump issued an executive order in August calling for the expansion of the stockpile.
The donated ingredients include antibiotics, blood thinners and asthma treatments, an administration official said. The companies have also committed to “convert these raw ingredients into finished medications when needed during emergencies,” they added.
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