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President Donald Trump announced new "Most Favored Nation" pricing agreements with nine pharmaceutical companies on Friday (December 19). These voluntary deals aim to lower drug costs in the United States by ensuring that medications are priced at the lowest rates available in peer countries. The companies involved include Amgen, Boehringer Ingelheim, Bristol Myers Squibb, Genentech, Gilead, GSK, Merck, Novartis, and Sanofi.
These agreements follow previous deals with five other drugmakers, including manufacturers of popular weight loss drugs. The initiative is a key part of the Trump administration's healthcare agenda, which seeks to reduce medication costs for American patients. The administration has now secured deals with 14 out of 17 major drug manufacturers targeted earlier this year.
Under the new agreements, the companies will sell medications to Medicaid at "Most Favored Nation" prices and launch new drugs in the U.S. at these rates. Additionally, they will offer certain medicines on the TrumpRx online platform, set to launch in January, which will allow consumers to purchase drugs at discounted rates by paying cash and bypassing insurance.
The pharmaceutical companies have also committed to investing over $150 billion in U.S. manufacturing and research projects. In return, they will receive a three-year reprieve from certain tariffs on pharmaceutical imports. Some companies will donate active pharmaceutical ingredients to a national emergency stockpile, addressing national security concerns.