(The Epoch Times)—President Donald Trump announced agreements with nine of the largest pharmaceutical companies to offer drugs to Americans at lower prices during a Roosevelt Room ceremony on Dec. 19.
“This represents the greatest victory for patient affordability in the history of American health care, by far, and every single American will benefit,” Trump said while flanked by executives representing the manufacturing giants.
“So, this is the biggest thing ever to happen on drug pricing and on health care. This will have a tremendous impact on health care itself.”
The deals with Amgen, Bristol Myers Squibb, Genentech, Merck, and five others will reduce costs for treatments related to autoimmune diseases, cancer, diabetes, and other disorders.
Trump’s drive to obtain most-favored-nation pricing has now brought 14 of the 17 biggest drug manufacturers into the initiative after AstraZeneca, EMD Serono, Novo Nordisk, Lilly, and Pfizer signed deals earlier this year.
“What was once considered impossible is now a reality,” a senior administration official told reporters during a briefing on Friday. “This is what bold leadership delivers.”
Support for the president’s pricing plan is gaining momentum among pharmaceutical company executives.
“What we’ve observed is initial industry hesitance collapsing into cooperation,” the official said. “It’s gone from a bold policy to an industry standard, and it’s happened in record time.”
“Most-favored-nation” pricing, directed by the president with an executive order in May, will ensure that Americans pay the same price or lower than in other developed countries.
“The days of American families subsidizing cut-rate drugs for the rest of the world are ending,” the official said.
Trump noted that 4 percent of the world’s population resides in the United States, yet 75 percent of pharmaceutical company profits come from the region.
“That’s why I signed an executive order instructing my administration to do everything in its power to slash prescription drug prices for Americans while getting other countries to pay more,” he said, adding at the end of the meeting that he will convene insurance companies soon to discuss further cost-savings efforts.
One unnamed drug manufactured in New Jersey and sold in the United States for $1,300 was available for $88 in London, according to Health and Human Services Secretary Robert F. Kennedy Jr.
“We were paying for all the innovation in this country, and yet the rest of the world was free riding on it,” Kennedy said.
He said the new agreements will help millions of people across the nation.
“Nobody has done anything for affordability greater than this,” Kennedy said.
The president said his trade policies and threats of tariffs created the leverage necessary to complete the negotiations.
“If we didn’t have the use of tariffs, we would never be able to do this,” Trump said.
Prices of drugs for Medicaid patients will match most-favored-nation levels “nearly immediately, protecting our most vulnerable citizens,” according to the official.
Alleviating financial burdens that cause some seniors and others to skip medications, postpone treatments, or acquire medical debt is a priority for the administration.
A new federal government website, Trumprx.gov, is set to launch in January 2006, offering reduced prices on many prescription drugs.
Blood thinner medications will decrease from $750 to $16, while hepatitis B and C medicines will fall from $1,400 and $25,000 to $413 and $2,500, respectively.
Drugs now in development will all be sold at most-favored-nation prices.
Additionally, companies are donating medicines, including 2.5 tons of antibacterial medications from Merck, 200 pounds of inhaler ingredients from GSX, and more than 6.5 tons of blood thinners from Bristol Myers Squibb—a U.S.-based firm that committed to investing $40 billion in domestic operations.
“These investments reflect our enduring commitment to work with the administration to improve patient lives,” Cari Gallman, executive vice president of Bristol Myers Squibb said during the event.
The new deals also include more than $150 billion in investments across the companies as they expand research, development, and manufacturing operations in the United States.
“This is about rebuilding American might,” the official said, noting an expected boost in job opportunities and economic development.
“It means more national security and more American independence.”
The president said economic disadvantages, which existed for decades in prescription drug prices, for American consumers are detrimental to the nation.
“You can’t continue to pay 13, 14 times more than other countries and think you’re going to have security,” Trump said.
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