Pfizer Reaches U.S. Agreement to Reduce Drug Prices and Strengthen Domestic R&D

The agreement addresses four points outlined in President Trump’s July 31 letter and includes participation in a direct purchasing platform, TrumpRx.gov, enabling patients to access Pfizer medicines at discounted rates. 

Pfizer Inc. announced a voluntary agreement with the U.S. government aimed at lowering prescription drug costs for American patients while supporting domestic biopharmaceutical infrastructure. 

The agreement addresses four points outlined in President Trump’s July 31 letter and includes participation in a direct purchasing platform, TrumpRx.gov, enabling patients to access Pfizer medicines at discounted rates. 

Savings for primary care treatments and select specialty brands are expected to range up to 85%, averaging around 50%. Specific terms of the agreement remain confidential.

Pfizer Chairman and CEO Albert Bourla said, “We are proud to join President Trump at the White House to celebrate this landmark agreement that is a win for American patients, a win for American leadership, and a win for Pfizer. By working closely with the Administration, we are lowering costs for patients and enabling greater investment in the U.S. biopharmaceutical ecosystem by ending the days when American families alone carried the global burden of paying for innovation. This is about putting all patients first and ensuring America remains the world’s leading engine of medical breakthroughs.”

Focus on Manufacturing and Investment

The agreement establishes a three-year grace period under which Pfizer products under a Section 232 investigation will not face tariffs, contingent on increased domestic manufacturing. Bourla added, “We now have the certainty and stability we need on two critical fronts, tariffs and pricing, that have suppressed the industry’s valuations to historic lows. Additionally, we’ve established a balanced global pricing approach that continues to recognize the value of innovation while ensuring 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.”

Pfizer plans to invest an additional $70 billion in U.S.-based research, development, and capital projects over the next few years, building on more than $83 billion invested between 2018 and 2024. Bourla emphasized, “This agreement allows us to invest even more boldly in the United States – fueling growth, creating jobs, and returning manufacturing home. Our U.S. workforce of 31,000 colleagues, supported by 13 manufacturing and distribution sites and 7 major R&D facilities, underscores Pfizer’s vital role in building a stronger American economy.”

Pipeline and Patient Impact

With the agreement in place, Pfizer will focus on advancing treatments in oncology, obesity, vaccines, and inflammation and immunology. Bourla noted, “We are committed to channeling unprecedented resources…showing how we are strengthening our commitment at this pivotal moment by shaping the future of medicine with the pursuit of pioneering breakthroughs and ensuring the U.S. remains the global hub for medical progress and improving lives.”

Stay tuned for more such updates on Digital Health News