Trump and Pfizer announce deal to lower drug prices, launch "Trump Rx" website

Driving the news: The deal announced in the Oval Office calls for:

• Pfizer offering almost all of its drugs to Medicaid at "most-favored nation" prices, meaning the lowest net price paid in other wealthy countries, where drugs often sell for less.
• Pfizer agreeing it won't charge more in the U.S. for new drugs it launches than in other wealthy countries, though there's no cap on those launch prices.
• Drugs will be offered directly to consumers through a yet-to-be-launched website dubbed "Trump Rx" at discounts if they don't use insurance and pay cash.
• Pfizer will invest $70 billion in U.S. manufacturing and research, and be exempted from tariffs for three years.

What they're saying: Pfizer CEO Albert Bourla called the announcement a "landmark" move that would be "turning the tide" of how drugs are priced.

• Trump said other companies will be making deals as well, mentioning Eli Lilly by name. "They're all coming in," he said, repeating the threat of higher pharma tariffs if they do not agree to the lower prices he wants.

The big picture: Pharmaceutical industry pledges leading up to Tuesday had focused on raising prices abroad rather than cutting prices in the U.S.

• The trade group PhRMA also announced steps on Monday including a new website to make it easier for consumers to buy medicines directly from the manufacturer without insurance.
• But those steps have fallen well short of the drastic price cuts that Trump has envisioned.

Editor's note: This story has been updated with additional details of the agreement.