WASHINGTON: The Trump administration has struck new drug pricing agreements with nine biotech and pharmaceutical companies, including UCB SA, Bridgebio Pharma Inc and Sun Pharmaceutical Industries Ltd.
As part of the deal, the companies will provide discounts on outpatient drugs to state Medicaid programmes so that the prices states pay align with what the companies charge in foreign countries.
Participation by state Medicaid programmes is optional.
The announcement on Monday is the latest installment in a string of splashy White House events with pharmaceutical executives and President Donald Trump aimed at spotlighting healthcare affordability ahead of the mid-term elections.
Trump said that pharmaceutical companies “make most of their money from the United States, meaning they’re ripping us off. But not any longer”.
The agreements also included Teva Pharmaceutical Industries Ltd, Astellas Pharma Inc, Alcon, BeOne Medicines Ltd, CSL Ltd and Kyowa Kirin Co.
The president claimed 26 companies representing 90% of the domestic pharmaceutical market have signed on to the administration’s most-favoured nation discounts and that “the other 10% are coming in, they have no choice”.
The companies also agreed to launch new medicines in the United States at prices in line with those charged in other developed countries, the White House said.
Collectively the nine new companies committed to US$19.6bil in US manufacturing investments “in the near term”, according to a White House fact sheet.
Several companies also committed to provide active pharmaceutical ingredients for the nation’s strategic reserve.
Companies independently disclosed additional terms of the agreements, including relief from tariffs of as much as 100% on certain imported patented medicines and exemptions from forthcoming pilot programmes forcing discounts in Medicare.
CSL said in a written statement that its agreement provides the company “with additional certainty regarding its exposure to US drug pricing” and certain tariffs. CSL doesn’t expect “any material impact” during fiscal year 2027. — Bloomberg
