Nine more drugmakers cut pricing deals with Trump
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The nine new drug pricing deals the Trump administration announced with mid-sized manufacturers Monday came together despite fears within segments of the industry about how price concessions could affect smaller companies' bottom lines.
Why it matters: The administration has been pressuring mid-sized companies to fall in line with its pricing regime, as it expands the "most favored nation" deals it's already struck with 17 large drug manufacturers.
- Like the previous deals, the new ones call for Medicaid price concessions and agreements to launch future drugs in the U.S. at prices pegged to what's paid abroad.
- By signing on, the mid-sized companies are expected to avoid tariffs and new Medicare drug pricing models.
Driving the news: The latest deals are with Alcon, Astellas Pharma, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals and UCB.
- The White House said the group also committed to investing at least $19.6 billion in near-term U.S. manufacturing. Some companies also are donating active pharmaceutical ingredients to a government stockpile.
- The new agreements mean 89% of the branded drug market is now subject to MFN deals, per the administration.
Yes, but: Critics like Public Citizen said there's no evidence that drug companies have followed through on commitments to lower U.S. launch prices to MFN levels.
- "The new deals are a distraction from the administration's failed plan to lower U.S. drug prices to the levels paid in other wealthy countries," said Peter Maybarduk, Access to Medicines director for Public Citizen. "Trump is cozying up to Big Pharma and keeping American drug prices high."
Reality check: America is experiencing its biggest prescription drug price drop in generations. But while the administration is trying to take credit, policy experts attribute most of the drop to market forces and Medicare drug price negotiations.
