US President Donald Trump is expected to announce new agreements on Friday (December 19) aimed at lowering prescription drug prices, the White House said. The announcement is scheduled for 1 p.m. ET at the White House.
AbbVie, Bristol Myers Squibb, Gilead Sciences, and Merck are among the major pharmaceutical companies expected to participate, Reuters reporting citing sources familiar with the matter.
Swiss drugmakers Novartis and Roche are also reportedly part of the deals, according to Bloomberg News.
Background: Most-Favored-Nation Letters
In July, Trump sent letters to leaders of 17 major pharmaceutical companies, directing them to offer so-called most-favored-nation prices to the US government’s Medicaid program for low-income individuals. Companies were also instructed to ensure that new drugs would not be launched at prices higher than those in other wealthy countries.
Previous deals
So far, five companies have already reached agreements with the administration to control prices: Pfizer, Eli Lilly, AstraZeneca, Novo Nordisk, and EMD Serono, the US division of Germany’s Merck KGaA.
The remaining 12 companies include Sanofi, Regeneron, Merck, Johnson & Johnson, AbbVie, Amgen, Gilead, Boehringer Ingelheim, Bristol Myers, GSK, Novartis, and Genentech (Roche’s US unit).
AbbVie and Merck declined to comment. Novartis said it is committed to discussions with the administration, while Roche expressed support for Trump’s goal of reducing drug prices and encouraged other countries to reward biopharmaceutical innovation.
Trump’s focus on US drug prices
Trump has repeatedly highlighted the disparity between US drug prices and those in other high-income countries, where government-run health systems negotiate price discounts.
