US President Donald Trump announced agreements with nine major pharmaceutical companies on Friday to reduce prescription drug prices in the United States. The companies include Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis and Sanofi.Under the agreements, drugmakers will curb prices for drugs sold through Medicaid and charge rates comparable to those in other wealthy countries. According to the AP news agency, new drugs brought to market by these companies will also follow MFN pricing in all markets, including commercial insurance, cash-pay, Medicare and Medicaid.Trump said the agreements would end a system in which U.S. patients paid far more than the rest of the world. “We’ve been subsidizing the whole world. We’re not doing that anymore,” he said at a White House news conference, according to Reuters. Prescription drug prices in the United States are often nearly three times higher than in other developed countries.The companies also agreed to offer pharmacy-ready medications on a new direct-to-consumer platform, TrumpRx, set to launch in January that will allow patients to buy medications directly from the manufacturer. According to Reuters, some companies are offering discounts of up to 70% on select drugs, although analysts have pointed out that Medicaid already receives deep discounts.Bristol Myers Squibb said it will make its blockbuster blood thinner Eliquis free to Medicaid, a move that health economist William Padula called “a thoughtful move toward health equity,” according to the AP. Several companies have also pledged to donate active pharmaceutical ingredients to a national reserve for use in emergencies.Markets reacted positively and shares of most participating drugmakers rose, Reuters said, as the deals also included a three-year exemption from threatened drug tariffs in return for a commitment to invest in U.S. production. Trump said he warned companies about possible tariffs to encourage them to “do the right thing,” AP reported.According to CNBC, the government has now reached pricing agreements with 14 of the 17 drugmakers it contacted earlier this year, and negotiations with the remaining firms are continuing.
