Up to 85% Discount and $70 Billion Investment
President Donald Trump of the United States has pressured pharmaceutical companies to lower the prices of medicines sold in the U.S. to the levels of other advanced countries. As a result, there are concerns that drug prices in countries such as South Korea may rise.
On September 30 (local time), President Trump announced at a briefing held at the White House with Albert Bourla, CEO of Pfizer, that Pfizer has agreed to sell all new drugs launched in the U.S. market at the Most Favored Nation (MFN) price.
The MFN price is the lowest price that a pharmaceutical company applies to advanced countries outside the United States. According to foreign media reports, American patients are currently paying about three times more than those in other advanced countries.
President Trump explained, "We will essentially pay the same prices as other countries, which are much lower."
Pfizer plans to offer most first-line treatments and some specialty drugs to consumers at an average discount of 50%, and up to 85%, through a new direct purchase platform called 'TrumpRX.'
Pfizer has also decided to invest 70 billion dollars to manufacture medicines in the United States.
CEO Bourla stated that while Pfizer invests in the U.S., President Trump agreed to defer tariffs on pharmaceuticals based on Section 232 of the Trade Expansion Act for three years. President Trump also confirmed to CEO Bourla, "If he moves (production facilities) here to the U.S., he will not pay tariffs," adding, "There are no tariffs if you relocate here."
President Trump said he is negotiating with other pharmaceutical companies to reach similar agreements. He stated, "The United States will no longer subsidize healthcare for countries around the world."
Previously, on July 31, President Trump sent letters to 17 global pharmaceutical companies, demanding that they lower drug prices in the U.S. within 60 days, warning that tariffs would be imposed if they did not comply. On September 25, he also announced that pharmaceutical companies not building factories in the U.S. would face a 100% tariff starting October 1.
On this day, Pfizer's stock price closed up 6.83% on the New York Stock Exchange.
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