Pfizer reaches the agreement on the most favored drug prices; Other pharmas that should follow
Pfizer is the first large pharmaceutical company to conclude an agreement with the Trump administration in relation to most nation -to -nation drug prices, an agreement that reduces American prices for certain drugs and makes them directly available for patients through new online channels. The agreement announced on Tuesday also gives Pfizer a period of grace before dealing with potential prices on its drugs.
With the most favored prices of the nation, the prices of a drug in the United States will be equal to the lowest price of the same drug in a comparable developed nation. President Trump has revived the policy in a decree of May. In July, he sent letters to the CEOs of 17 large pharmaceutical companies describing the ways he wanted them to comply with the order. This letter gave companies until September 29 to respond.
At a press conference Tuesday with the Trump administration, Pfizer leaders said that the company would participate in Trumprx.gov, a new purchasing platform that will allow Americans to buy most primary care and certain specialized pfizer drugs “. An information sheet on the White House has listed some examples of existing PFizer products: an 80% discount for the drug to atopic dermatitis Eucrisa; a 40% discount for Xeljanz medication immunology; And a 50% discount for the zavprefactory migraine medication.
The specific terms of the agreement remain confidential. But the White House said that the agreement means that each Medicaid state program in the country will have access to the prices of drugs in most countries on PFIZER products. In addition, the agreement ensures the price of the nation mostly favored on all the new drugs that Pfizer brings on the market.
As the deadline approaches for a response to Trump’s most favored nation’s proposal, pharmaceutical companies have deployed initiatives that could help them achieve the objectives described in the decree. This prescription specified that the sale directly to patients would be a way to comply, as long as the prices offered by these channels were not higher than the best prices in other developed countries. Last week, Bristol Myers Squibb announced that a new Direct website at the patient will be launched in January with the Psoriasis drug in Sotyktu plaque as a first product offered to a strong reduction. Astrazeneca, Novartis and Boehringer Ingelheim have since revealed their own direct plans to consumers. The Commercial Group of the PHRMA industry has also announced a new website that will connect American consumers with direct purchase programs for drug manufacturers.
Another decision taken by certain companies is to increase the prices of medicines sold abroad. Earlier this month, BMS said Schizophrenia Drug Cobenfy will be launched in the United Kingdom at a price equal to the price of the United States list. This followed Eli Lilly’s August Lilly’s announcement that she had concluded an agreement with the United Kingdom to increase the price of the Diabetes type 2 drug mounjaro. Lee Brown, head of the World Sector, Health Care, at Consultancy Third Bridge, said that this strategy approaches a Trump argument that other nations “free to the American pharmaceutical innovation” Information sheets on the White House. This strategy also gives pharmaceutical companies a way to protect their income in the United States, their largest market.
“I think [pharma companies] Increase certain prices to compensate for certain price reductions in the United States., And they do it for a selected number of drugs, and they deliver them as victories to the Trump administration, “said Brown in an interview.” Trump will take this as a victory. This is how he works. He doesn’t really look for everything. He is looking for things he would not have obtained. »»
In a note sent to investors, Leerink Partners analyst David Risison said there was now a framework for other countries to absorb higher prices than they have done in the past for new drugs. He added that Pfizer plans that this opens up a way to introduce new drugs at the list prices abroad in accordance with the prices of the American list. But Leerink does not expect the prices of existing drugs to be increased outside the United States due to the economic challenges to do so.
Trump also threatened to impose prices on pharmaceutical products. Article 232 of the law on the expansion of exchanges authorizes the prices if a survey of the US trade department concludes that they are necessary for national security. This justification has already been used to justify prices on aluminum and steel imports. The survey of pharmaceutical products is underway. But Pfizer said that its products under a survey of article 232 will not face prices for three years as long as the company is investing in its American manufacture. In the past year, major pharmaceutical companies have unveiled capital investment plans of several billion dollars for the United States, the most recent GSK plan to spend $ 30 billion on American manufacturing and R&D sites over the next five years. This announcement was made while Trump was in the United Kingdom during a state visit.
William Blair analyst Matt Phipps said in a research note that remains to be seen if companies will have to provide drugs directly to patients via Trumprx.gov or through their own programs. We also do not know how these new options will affect the prices of medicines for the Ministry of Veterans Combators or Medicaid.
“The majority of major biopharmacy companies have already announced significant commitments to invest in manufacturing and R&D facilities in the United States,” said Phippps. “After today’s announcement, we expect more companies to announce direct channels to consumers to further appease the Trump administration and largely suppress threats of 100% prices and price reductions of 1,000%.”
Photo: Mandel and / AFP, via images
