WASHINGTON — President Donald Trump delivered remarks from the Oval Office Tuesday outlining a new plan to lower prescription drug costs for Americans, including agreements with pharmaceutical giant Pfizer.
Trump said the plan addresses what he called a long-standing problem in which U.S. consumers have been subsidizing research and development costs for the rest of the world.
“The major reason is that the American consumers have been subsidizing research and development costs for the entire planet,” Trump said. “They put all of that on us and yet they were the beneficiaries too, so it’s being changed as of today.”
Trump noted that while the U.S. has just 4% of the world’s population and only 13% of prescription drugs, pharmaceutical companies make 75% of their profits from American customers.
“So think of that,” he said. “We have 4% of the market, 13% of prescription drugs… and yet… they make 75% of their profits from the American customers, so it’s something that’s why I signed an executive order combating this practice.”
He highlighted Pfizer’s commitment to offer all of their prescription medications to Medicaid at most-favored-nation prices, saying it will significantly reduce costs.
“Today, Pfizer is committing to offer all of their prescription medications to Medicaid, and it will be at the most favored nation’s prices,” Trump said. “It’s going to have a huge impact on bringing Medicaid costs down, like nothing else.”
Trump added that Pfizer will also provide some of its most popular medications to all consumers at discounts ranging from 50% to 100%, with drugs available for direct purchase online through a government-operated website.
“We’re also announcing that moving forward all new medications introduced by Pfizer to the American market will be sold at the reduced most favored nation costs,” he said.
Pfizer will invest $70 billion to reshore domestic manufacturing facilities, Trump said, bringing production and research back to the U.S.
“We’re working with other major pharmaceutical companies to secure similar agreements,” he said, adding that Americans have long paid more for drugs than consumers in other countries.
Trump also praised his team and the negotiators who helped bring the deal together.
The president said the initiative will include a new website, Trump RX, allowing Americans to purchase medications directly from Pfizer.
“We’ll keep listening to this, bring you the key updates as they happen, but we’re going to move right now into Local 10 News at noon,” Trump concluded.
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