President Donald J. Trump announced Dec. 19 nine new agreements with major pharmaceutical companies to lower prescription drug prices for Americans in line with the lowest prices paid by other developed nations, also known as the most-favored-nation (MFN).
The nine drug manufacturers are Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis and Sanofi. Most of the pharmaceutical companies have a presence in New Jersey, considered to be the “medicine chest” of the nation.
The agreements reduce prices on drugs that treat costly and chronic conditions, including type two diabetes, rheumatoid arthritis, multiple sclerosis, asthma, chronic obstructive pulmonary disease (COPD), hepatitis B and C, human immunodeficiency virus (HIV), and certain cancers, among others.
The agreements will provide every state Medicaid program in the country access to MFN drug prices on products made by the nine companies, resulting in billions of dollars in savings.
The White House said the agreements “ensure foreign nations can no longer use price controls to free ride on American innovation by guaranteeing MFN prices on all new innovative medicines the nine companies bring to market.”
The agreements require the nine companies to repatriate increased foreign revenue on existing products that they realize as a result of the president’s aggressive trade policies.
The agreements require the nine companies to offer medicines at a deep discount off the list price when selling directly to American patients through TrumpRx.
The White House said patients will be able to see price reductions on products when purchasing directly through TrumpRx as a result of Friday’s actions.
Amgen will reduce the price of its cholesterol-lowering drug Repatha from $573 to $239 for patients purchasing directly through TrumpRx.
“The U.S. leads the world in biopharmaceutical innovation, and we look forward to continued engagement with the U.S. government to see that this innovation is appropriately supported globally,” said Robert A. Bradway, chairman and chief executive officer at Amgen.
Bristol Myers Squibb will reduce the price of its HIV medication, Reyataz, from $1,449 to $217 for patients purchasing directly through TrumpRx.
“We are taking direct action to improve the lives of millions of Americans, ensuring our nation’s most vulnerable have access to this critical medicine at no cost,” said Christopher Boerner, board chair and CEO of Bristol Myers Squibb.
Boehringer Ingelheim will reduce the price of its type two diabetes medication, Jentadeuto, from $525 to $55 for patients purchasing directly through TrumpRx.
Genentech will reduce the price of its flu medication, Xofluza, from $168 to $50 for patients purchasing directly through TrumpRx.
“Today’s agreement demonstrates our ongoing commitment to enhancing access to life-changing therapeutics, so patients may benefit from our country’s long-term commitment to innovation,” said Ashley Magargee, chief executive officer of Genentech. “As the proud founder of the American biotech industry, we share the goals of the administration to address prescription drug costs and reward innovation.”
Gilead Sciences will reduce the price of its Hepatitis C medication, Epclusa, from $24,920 to $2,425 for patients purchasing directly through TrumpRx.
“This agreement reflects a foundational commitment to both affordability and future innovation, a commitment that we have long seen as essential to shaping the future of healthcare,” said Daniel O’Day, chairman and chief executive officer, Gilead Sciences. “The progress toward expanding access and increasing investment in U.S. innovation will meaningfully contribute to America’s health and economic priorities.”
GSK will reduce the prices of its inhaler portfolio. Prices for the popular asthma inhaler Advair Diskus 500/50 will fall from $265 to $89 for patients purchasing directly through TrumpRx.
GSK CEO Emma Walmsley said, “Today’s announcement builds on GSK’s strong track record of increasing access and improving the affordability of its medicines worldwide, including an ongoing commitment to responsible pricing. Through this agreement, GSK will ensure patients have access to the current portfolio of respiratory medicines while bringing the next wave of innovation to American patients.”
Merck will reduce the price of its diabetes medication, Januvia, from $330 to $100 for patients purchasing directly through TrumpRx.
“For too long, global pricing imbalances have shifted the financial burden of groundbreaking research and development onto the U.S. health care system and ultimately, American patients. Merck remains committed to expanding access and improving affordability across the system,” said Robert M. Davis, chairman and chief executive officer of Rahway-based Merck.
Novartis will reduce the price of its multiple sclerosis medication, Mayzent, from $9,987 to $1,137 for patients purchasing directly through TrumpRx.
“This agreement continues our long-term partnership with the U.S. government to advance the development and manufacturing of breakthrough treatments for patients in the United States,” said Vas Narasimhan, CEO of Novartis. “We are committed to working with governments worldwide to ensure innovation is appropriately valued and that our medicines reach the patients who need them most.”
Sanofi will reduce the price of its prescription blood thinner, Plavix, from $756 to $16 for patients purchasing directly through TrumpRx and Sanofi will list its insulin products at TrumpRx at $35 per month’s supply.
“By working constructively with the administration, we are moving forward with a plan that lowers medicine prices for Americans now and strengthens the vital role of the U.S. in delivering breakthroughs into the future,” said Paul Hudson, chief executive officer of Sanofi. “These sweeping changes to the US pharmaceutical landscape amplify the critical and urgent need for advanced economies to recognize the value of innovation and invest boldly in the future.”
