US President Donald Trump revealed significant agreements with top pharmaceutical firms to reduce prescription drug expenses, hailing it as the most substantial price drop in US history. Trump, speaking from the White House, disclosed that Regeneron, a prominent company, had committed to providing medications at “most favoured nation prices,” anticipating unprecedented cost reductions. He stated that 17 major pharmaceutical corporations, accounting for 80% of the branded drug market, had pledged to offer their products to American consumers at the lowest global prices.
Health and Human Services Secretary Robert F. Kennedy Jr. supported the initiative, denouncing the long-standing disparity where the US, with 4.2% of the global population, contributes 75% of pharmaceutical industry profits. Mehmet Oz, Administrator of the Centers for Medicare and Medicaid Services, emphasized the policy’s focus on affordability, citing that one in three Americans often forego medication due to financial constraints. Noteworthy price reductions were highlighted, such as a cholesterol drug plummeting from $537 to $225 and a weight-loss medication decreasing from $1,350 monthly to as low as $199.
Regeneron’s CEO, Leonard Schleifer, expressed the company’s endorsement of efforts to rectify global pricing differentials, emphasizing their voluntary participation in the initiative. The company also introduced a gene therapy for a rare deafness variant, offering it free to eligible children initially. George Yancopoulos described the treatment as groundbreaking, enabling individuals like Travis to hear for the first time, a sentiment echoed by Sierra Smith, whose son underwent the therapy and now experiences life-changing improvements. Commerce Secretary Howard Lutnick underscored the link between the policy and domestic drug manufacturing, projecting a substantial $448 billion influx into the US.
The White House confirmed that the agreements now encompass approximately 86% of the branded pharmaceutical market, with ongoing negotiations to expand coverage.
