Pfizer headquarters in New York, as the company agrees to lower drug prices for Medicaid patients in the U.S (Photo: Pinterest)
Presumptions by pressure groups continue to be a new chapter in the debate over drug prices in the United States. President Donald Trump has stated that Pfizer will reduce its prescription drug prices for all Medicaid usages. The pharmaceutical giant will market all its new drugs under a most-favored nation model meaning that pricing in the U.S. will be aligned to the lowest rates charged anywhere abroad.
According to the administration, this effort is part of a wider initiative which seeks to bring down costs for American patients and also includes potential plans for launching a direct-to-consumer platforms such as TrumpRx.
The Pfizer decision comes after months of pressure from the White House that sent letters to 17 top drugmakers demanding them to bring their prices down to match international offerings. This makes Pfizer the first to comply, but an announcement like this will set off a chain reaction throughout the industry.
ALSO READ: Donald Trump’s Gaza Peace Plan: All 20 Points of the Israel-Hamas Deal Explained
With pressured, reduced prices for drugs and Medicaid's 71 million low-income beneficiaries from substantial relief. Both positive and negative effects ahead are still subject to uncertainty because it is not known whether Medicare or the broader market will share in the savings.
American pharmaceutical industry has had some unfortunate outcries against the most favored nation policy citing the subsequent disruption of investment into research and reduce America's supremacy in global drug development. Importing foreign paradigms, according to PhRMA, jeopardizes the long-term benefits associated with patients and workers.
ALSO READ: Trump Declares 100% Tariff on International Films: What’s Next for Hollywood?
The timing is quite ironic considering the fact that there have already been threats of a 100% tariff penalty for the name-brand pharmaceuticals' importation into the US with less than 15% levied on the European Union following a new trade deal. Some companies have already begun taking price steps. Novo Nordisk recently offered a month of Ozempic, their diabetes drug, through a direct-pay program at $499, down from almost $1,000 retail.
Pfizer is one of the largest multinational pharmaceutical companies. Founded in 1849, the company has been in operations in over 125 countries around the world. Known worldwide for innovation in the development of medicines and vaccines including an important role in the COVID-19 pandemic, its products include pharmaceutical drugs, vaccines and consumer health products.
Its agreement to lower drug prices for Medicaid could be a prefiguring of larger pharmaceutical company's reactions to government demands with the condition that the U.S. remains the most profitable drug market in the world.
ALSO READ: UK to introduce new rules for foreign workers: What It Means for Indian Workers & Migrants
Disclaimer: This article is for informational purposes only. Verify details on Pfizer’s pricing policies and U.S. government announcements from official sources.
