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President Donald Trump announced a significant agreement with Pfizer on Tuesday (September 30) to lower drug prices in the United States. The deal involves Pfizer voluntarily reducing prices across its range of medications, though specific drugs and the extent of the price cuts were not disclosed. This initiative is part of President Trump's broader "Most Favored Nation" policy, which aims to ensure that the U.S. pays no more than the lowest prices charged in other wealthy countries.
According to a White House official, Pfizer will also launch a direct-to-consumer website called "TrumpRx," allowing Americans to purchase medications at discounted rates. Additionally, Pfizer plans to invest $70 billion in research, development, and domestic manufacturing.
The deal is part of President Trump's ongoing efforts to lower healthcare costs, a key focus of his administration. President Trump has been pressuring drug manufacturers to reduce prices and has revived his "Most Favored Nation" policy from his first term. This policy seeks to align U.S. drug prices with those in peer countries.
The announcement follows a series of actions by the Trump administration to address high drug costs, including an executive order in May directing drugmakers to offer "Most Favored Nation" prices or face consequences. The administration also plans to implement a 100% tariff on brand-name pharmaceutical imports unless the drugmaker builds a manufacturing plant in the U.S.
While the deal marks a significant step, some industry experts remain skeptical about its impact. Critics argue that the president lacks the legal authority to enforce "Most Favored Nation" pricing and that drugmakers may increase prices in other countries rather than lower them in the U.S.