{"id":46182,"date":"2025-12-20T11:35:23","date_gmt":"2025-12-20T11:35:23","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/12\/20\/trump-secures-deals-with-nine-pharma-firms-to-lower-us-drug-prices-avert-tariffs\/"},"modified":"2025-12-20T11:35:23","modified_gmt":"2025-12-20T11:35:23","slug":"trump-secures-deals-with-nine-pharma-firms-to-lower-us-drug-prices-avert-tariffs","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/12\/20\/trump-secures-deals-with-nine-pharma-firms-to-lower-us-drug-prices-avert-tariffs\/","title":{"rendered":"Trump secures deals with nine pharma firms to lower US drug prices, avert tariffs"},"content":{"rendered":"<div><\/div>\n<p>US President Donald Trump announced deals with nine major pharmaceutical companies on Friday to <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-12-19\/nine-drugmakers-strike-pricing-deals-with-trump-to-avoid-tariffs\">lower US drug prices in exchange for three-year exemptions from threatened tariffs on pharmaceutical imports.<\/a><\/p>\n<p>The agreements bring the total number of drugmakers aligned with Trump&#8217;s pricing initiative to 14 of the 17 companies the administration targeted this year.<\/p>\n<p>The latest round represents the largest pharmaceutical pricing agreement announced to date, covering price reductions on treatments for diabetes, rheumatoid arthritis, multiple sclerosis, asthma, COPD, hepatitis B and C, HIV, and certain cancers.\u200b<\/p>\n<h2 class=\"wp-block-heading\">Nine firms join Trump&#8217;s drug-price plan<\/h2>\n<p>The nine companies announcing deals on Friday are Amgen, Boehringer Ingelheim, Bristol Myers Squibb, Genentech (Roche), Gilead Sciences, GSK, Merck, Novartis, and Sanofi.<\/p>\n<p>Each firm is committed to implementing &#8220;Most Favored Nation&#8221; pricing for Medicaid, the federal health insurance program for low-income Americans, ensuring that drugs priced higher in the US than in comparable nations will be discounted to international levels.<\/p>\n<p>The companies will also launch new medications at most-favored-nation prices and offer primary care and specialty medications through the TrumpRx platform, a direct-to-consumer website set to launch in January 2026.\u200b<\/p>\n<p>Several signatory firms have additionally pledged to donate active pharmaceutical ingredients to America&#8217;s Strategic Active Pharmaceutical Ingredients Reserve (SAPIR) to support emergency preparedness for pandemics and national security crises.<\/p>\n<p>In return for these commitments, the Trump administration granted each company a three-year tariff exemption that shields them from threatened 100% tariffs on brand pharmaceutical imports and 15% tariffs on European Union medicines.\u200b<\/p>\n<p>According to senior administration officials, approximately 30 to 40% of Medicaid drugs will be impacted by the price reductions.<\/p>\n<p>The TrumpRx platform will guide consumers to manufacturers&#8217; direct-to-consumer sales channels where they can purchase medications at negotiated discounts, a model that contrasts with traditional insurance-based purchasing and appeals to uninsured or self-insured Americans seeking cash discounts.<\/p>\n<h2 class=\"wp-block-heading\">Tariff relief tied to discounts<\/h2>\n<p>The tariff component represents Trump&#8217;s primary leverage in these negotiations.<\/p>\n<p>Earlier announcements with Pfizer and AstraZeneca followed similar frameworks: price reductions tied to three-year tariff holidays and commitments to increase domestic manufacturing.<\/p>\n<p>The administration signaled willingness to use tariff threats aggressively, with Trump administration officials explicitly acknowledging that tariff pressure drove companies to the negotiating table.\u200b<\/p>\n<p>Three major pharmaceutical firms remain unsigned as of December 19, creating potential leverage for further negotiations heading into 2026.<\/p>\n<p>Democratic lawmakers immediately demanded transparency regarding cost savings and questioned whether the confidential deals truly benefit patients or merely shift financial burdens without delivering meaningful price relief.<\/p>\n<p>Health policy experts noted that while Medicaid beneficiaries typically pay little to nothing for medications under existing programs, cash-paying and uninsured patients could see substantial savings through TrumpRx direct purchases, potentially providing greater relief than Medicaid rate changes.\u200b<\/p>\n<p>Pharmaceutical industry groups acknowledged that the deals represent material concessions but argued that US pricing strategies have historically supported robust research and development investments.<\/p>\n<p>Analysts warned that aggressive domestic price controls could discourage new drug development and slow innovation, a concern Trump administration officials dismissed, noting that companies&#8217; willingness to sign indicates sustainable profitability at lower price points.<a href=\"https:\/\/www.statnews.com\/2025\/12\/19\/trump-drug-prices-new-medicaid-deals-nine-pharmaceutical-companies\/\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a>\u200b<\/p>\n<h2 class=\"wp-block-heading\" id=\"market-impact-and-what-comes-next\"><a href=\"https:\/\/www.whitehouse.gov\/fact-sheets\/2025\/12\/fact-sheet-president-donald-j-trump-announces-largest-developments-to-date-in-bringing-most-favored-nation-pricing-to-american-patients\/\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a>\u200b<\/h2>\n<p>The post <a href=\"https:\/\/invezz.com\/news\/2025\/12\/19\/trump-secures-deals-with-nine-pharma-firms-to-lower-us-drug-prices-avert-tariffs\/\">Trump secures deals with nine pharma firms to lower US drug prices, avert tariffs<\/a> appeared first on <a href=\"https:\/\/invezz.com\/\">Invezz<\/a><\/p>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>US President Donald Trump announced deals with nine major pharmaceutical companies on Friday to lower US drug prices in exchange for three-year exemptions from threatened tariffs on pharmaceutical imports. The agreements bring the total number of drugmakers aligned with Trump&#8217;s pricing initiative to 14 of the 17 companies the administration targeted this year. The latest <\/p>\n","protected":false},"author":1,"featured_media":46183,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-46182","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/46182","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=46182"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/46182\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/46183"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=46182"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=46182"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=46182"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}