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Trump Drug Price Deal With 9 Companies: How Much Could Prices Drop?

Trump’s agreements with nine pharmaceutical companies could lower U.S. drug prices, with discounts on some medications reaching 85%.
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acuerdo para bajar precios de medicamentos, Trump Drug Price Deal With 9 Companies: How Much Could Prices Drop?
FOTO: Shutterstock

President Donald Trump announced agreements with nine pharmaceutical companies to lower medication prices in the United States, including treatments for cancer, Parkinson’s disease, and hemophilia.

With these additions, 26 manufacturers are now participating in “most-favored-nation” (MFN) pricing agreements, representing 89% of the branded drug market, according to the White House.

  • Why it matters: Some medications included in previous agreements have received discounts ranging from 50% to 85%, although that does not mean every patient will automatically pay those prices.

How Much Could U.S. Medication Prices Drop?

The MFN system seeks to prevent the United States from paying significantly more for certain medications than other developed countries.

  • Put simply: If a medication costs less in a comparable country, the agreement seeks to bring the U.S. price closer to that amount.

Previous results show that savings can be substantial for specific medications. The White House reports discounts ranging from 60% to 80% on some Amgen products.

The White House also reports reductions of nearly 60% on Emgality and 61% on Trulicity, both manufactured by Eli Lilly. Pfizer has offered average savings of 50% and discounts of up to 85% on certain medications.

  • However, there is an important caveat: The new Trump drug price deal with the nine pharmaceutical companies does not establish a universal discount of 50%, 70%, or 80% for all their medications.

Savings will depend on the product, type of coverage, and how each agreement is implemented.

Who Could Benefit From the Price Deal?

The companies joining the agreement are Alcon, Astellas Pharma, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals, and UCB.

medication prices in the United States, Trump Drug Price Deal With 9 Companies: How Much Could Prices Drop?
Trump Drug Price Deal With 9 Companies: How Much Could Prices Drop? – PHOTO: Shutterstock

Their products include treatments for costly conditions such as cancer, hemophilia, Parkinson’s disease, macular degeneration, and glaucoma.

  • Additionally, state Medicaid programs will have access to MFN prices for medications manufactured by these companies.
  • The agreements also include at least $19.6 billion in investments to manufacture medications in the United States.

The administration estimates that its overall MFN strategy could save approximately $600 billion over the next decade. However, that figure is a government projection, not savings that have already been achieved.

Experts consulted by FactCheck.org also warn that it remains difficult to determine how much of the recent price decline is directly attributable to these agreements.