Pfizer Reaches Agreement with U.S. Government to Lower Drug Costs 

On September 30th, Pfizer entered an agreement with the Trump Administration to lower prices for its prescription drugs. In response to the four points covered in the President’s July 31st letter, Pfizer agreed to implement measures designed to ensure Americans receive comparable drug prices to those available in other developed countries and pricing newly launched medicines at parity with other key developed markets. 

Specific terms of the agreement were not disclosed.

Pfizer will also participate in a direct purchasing platform, TrumpRx.gov, that will allow Americans to purchase medicines from Pfizer at a significant discount. Most of the company’s primary care treatments and some select specialty brands will be offered at savings that will range as high as 85% and on average 50%.

Pfizer agreed to a three-year grace period during which time Pfizer products under a Section 232 investigation will not face tariffs, provided the company invests in manufacturing in the U.S.

Additionally, Pfizer established a global pricing approach to ensure prices in the U.S. and other developed countries are both reasonable and sustainable, maintaining the strength of the U.S. market alongside other developed nations.

The company plans to invest an additional $70 billion dedicated to U.S. R&D and capital projects in the next few years.