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Donald Trump’s administration is planning to announce a direct-to-consumer programme allowing people to buy pharmaceuticals at a discounted price negotiated by the government, according to people familiar with the matter.
As part of the announcement, Pfizer will participate in the programme, nicknamed TrumpRx, and has agreed to lower prices on certain drugs, making it the first big pharmaceutical company to cut a deal with the White House to lower US medicine costs.
The deal represents a significant win for the Trump administration on drug pricing. Since May, Trump has pressured global pharmaceutical companies to lower US prices. Pfizer was one of 17 groups that received a letter from his administration seeking binding agreements to lower prices. The deadline to respond to the letter was September 29.
Pfizer’s share price was up 2 per cent in Tuesday morning trading. The deal with the Trump administration “[is] a win for Pfizer because it provides the certainty and stability we need to continue advancing new breakthrough medicines for patients”, a spokeswoman for Pfizer said on Tuesday.
This is a developing story
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