Pfizer will be exempt from pharma tariffs for three years
US President Donald Trump has announced an agreement with pharma giant Pfizer to sell medications at a lower price in the US, according to the CNBC.
As part of the deal, the firm will be selling its existing drugs to Medicaid patients at the lowest price that was offered in other nations. This will also apply to its new drugs for Medicare, Medicaid, and commercial payers.
According to Trump, the drugs will be available for direct purchase on a website called TrumpRx.gov with an online discount ranging “anywhere between 50% and even 100%.” In a press release, Pfizer stated that it will be offering a large part of its primacy care treatments and certain specialty branded drugs at discounted prices ranging from 50% to 85%.
Meanwhile, the firm will also be enjoying an exemption to pharmaceutical-specific tariffs as it is set to invest $70 billion to reshore domestic drug manufacturing and research facilities. This was because the deal also entailed that the exemption will push through as long as the company continues to invest in US manufacturing.
The US president added that Pfizer was the first pharmaceutical company that had secured an agreement with him, noting that he is still in discussion with other firms. He pointed out that if no deal was made, the drugmakers will receive tariffs.
Notably, Trump had given Pfizer and 16 other firms a deadline to lower their drug prices. He also announced that a 100% tariff will be imposed on any branded or patented Pharmaceutical Product entering the country starting on Oct. 1, except for companies that were building drug manufacturing plants in the US.
In 2023, the US has imported packaged medications from Ireland, Switzerland, Germany, Italy, Demark, the United Kingdom, and India, which was worth $120.3 billion (US$86.4 billion). The country also imported vaccines, blood, antisera, toxins, and cultures worth $90.6 billion (US$65.1 billion), according to Al Jazeera.
Pfizer CEO Albert Bourla stated that the firm had accomplished all of the requests Trump had made, which also included pursuing tougher price negotiations overseas and adopting models that will directly sell medicines to consumers or businesses.
“The big winner clearly will be the American patients, there is no doubt. They are the ones that will see a significant impact on their ability to buy medicines,” said Bourla.
