Washington: Several leading pharmaceutical companies have agreed to lower prices on a range of prescription medicines in the United States following negotiations with the administration of Donald Trump, according to people familiar with the discussions.
The move is aimed at easing the cost burden for Medicaid patients and people who pay for medicines directly without insurance. The agreements, which were first reported earlier this week, involve nine major drugmakers and could lead to price reductions of up to about 70 percent on certain widely used drugs.
Among the companies that have reached agreements are Merck, Pfizer, Gilead Sciences, Bristol Myers Squibb, Novartis, Sanofi, Amgen, Roche, and GlaxoSmithKline.
Sources said the agreements focus mainly on medicines sold through Medicaid and on drugs offered directly to consumers at reduced prices. The administration is also preparing a new online platform that would allow patients to buy some medicines directly at lower rates.
In return for the price cuts, the companies are expected to receive temporary relief from potential trade related penalties that had been under consideration. They have also committed to increasing investment in US based research, development and manufacturing over the coming years.
Since the initial announcement, additional drugmakers have shown interest in joining similar arrangements. Talks are reported to be continuing with other large pharmaceutical firms, raising the possibility that more companies could announce price reductions in the weeks ahead.
Financial markets reacted calmly to the news, with shares of several participating companies rising slightly as investors welcomed greater policy clarity.
While the agreements are expected to bring savings for some patients, health policy experts note that the impact on people with private insurance may be limited in the short term, as many already receive drugs at negotiated rates. Still, supporters of the move say it marks a significant step toward narrowing the gap between US drug prices and those in other developed countries.
The administration has said it will monitor how the new pricing measures are implemented and whether they deliver meaningful savings for patients across the country.