Trump announces deal with Pfizer to lower drug prices

President Trump on Tuesday announced that Pfizer had agreed to sell its products in the U.S. at "Most Favored Nation" pricing, one day after the administration required companies to respond to his prescription drug pricing executive order.

Drugmakers were given until Sept. 29 to respond to Trump's "Most Favored Nation" Executive Order that required companies sell drugs in the U.S. at the lowest price they sell in other developed countries, establish direct-to-consumer avenues and not sell new drugs for lower prices in other countries.

"Pfizer is committing to offer all of their prescription medications to Medicaid. it will be at the most favored nation's prices. It's going to have a huge impact on bringing Medicaid costs down like nothing else," Trump said in a press briefing in the Oval Office.

Trump had sent requests to 16 other drugmakers in his executive order. It's unclear if others will follow Pfizer's lead. Some of the companies told The Hill on Monday they remained in discussions with the administration.

"We're working with other major pharmaceutical companies to secure similar agreements," Trump said, later telling reporters all companies would announce deals within a week.

Pfizer CEO Albert Bourla joined Trump's health agency heads in the Oval Office. 

"The big winner of this deal, clearly, will be the American patient. There is no doubt about it. They are the ones that will see significant impact in their ability to buy medicines," he said. "But I would argue that it is not the only winner. I think who else is the winner? Here it is American innovation and American economy."

Bourla said the agreement undid uncertainties about tariffs, saying the administration had given his company a three-year "grace period" from Section 232 tariffs, which the president can enforce on the basis of national security. 

The Commerce Department initiated a 232 investigation into the national security impact of importing pharmaceuticals and pharmaceutical ingredients earlier this year. Such tariffs are usually imposed on broad classes of imports, rather than certain companies.

Trump also said Pfizer would sell some of its most popular medications to all consumers at heavily discounted prices. He said these drugs will be available for direct purchase online at a website operated by the federal government.

Pfizer's portfolio of products include its COVID-19 vaccine, marketed commercially as Comirnaty, and its blood clot medication Eliquis, which was among the first 10 drugs selected for Medicare negotiation based on how costly it was for the federal healthcare program.

The website will reportedly be called TrumpRx. It's unclear what drugs will be made available or how widely they will be accessible.

Pharmaceutical trade group PhRMA launched a platform on Monday called AmericasMedicines.com that connects patients with manufacturers' direct-to-consumer programs, with many of the companies named in Trump's executive order taking part.

Pfizer was not among the companies listed on PhRMA's platform.

Health and Human Services Secretary Robert F. Kennedy Jr. said his "liberal Democrat" son applauded the news.

"My 27-year-old son, Connor, who's a very liberal Democrat, I told him this was happening, and he just paused for a minute, and he said, 'Thank you, dad. I'm so proud of you.' Because this is something Democrats wanted for — Democrats have wanted for 20 years. Republicans have wanted for 20 years," Kennedy said.

Updated 1:10 p.m.