Trump adds nine more Pharma companies to ‘most favored nation’ drug-pricing program

Another nine drug companies have hopped on board with President Trump’s “Most Favored Nation” drug pricing program, bringing the total number of companies participating to 14 of the 17-largest drug manufacturers.

The latest companies are GlaxoSmithKline, Merck, Sanofi, Amgen, Boehringer Ingelheim, Bristol Myers Squibb, Genentech, Gilead and Novartis.

“This represents the greatest victory for patient affordability in the history of American health care, by far, and every single American will benefit,” Mr. Trump said at the White House surrounded by company executives.

The deals will offer cheaper prices on drugs sold to the government and to U.S. consumers directly through the president’s planned TrumpRx.gov, to be launched early next year.

A senior administration official speaking with the press ahead of the announcement said the agreements by all nine companies equal more than $150 billion in new investment commitments in manufacturing and research and development in the U.S.

“This is no longer a trickle. This is a flood. MFN has gone from a bold policy to an industry standard, and it’s happened in record time,” the official said. “What we’ve observed is initial industry hesitance collapsing into cooperation, and the message is clear — President Trump was serious, and America wins.”

Under the deals, the drugmakers have agreed to sell their drugs to Medicaid at the MFN prices.

The manufacturers get a three-year tariff relief and could get expedited approval or reviews in exchange for the deals made.

“This is the president’s answer to pharmaceutical vulnerability, such that when the disaster strikes, whether it’s a natural catastrophe, pandemic or a national security emergency, America will be ready,” the official said.

Several of the manufacturers are also donating active pharmaceutical ingredients, or APIs, to America’s reserve.

Bristol Myers Squibb Executive Vice President Cari Gallman announced that the company would be providing its top prescribed medication, blood thinner Eliquis, to Medicaid for free.

The president has said repeatedly that the U.S. pays more for drugs than other countries. He signed an executive order in May for the “Most Favored Nation” program and “end global freeloading.”

Americans currently pay roughly three times more the rate paid in other wealthy countries for brand-name drugs, namely those in the Organization for Economic Cooperation and Development, even after accounting for discounts manufacturers provide in the U.S., according to government data.

The Friday announcement follows deals made with other manufacturers, including Pfizer, AstraZeneca, EMD Serono, Novo Nordisk and Eli Lilly.

Johnson & Johnson, AbbVie and Regeneron are the three remaining companies yet to strike drug pricing deals, but the president said Johnson & Johnson “will be here next week.”