AbbVie, Merck, Other Top Drugmakers To Lower Prices Of US Drugs In MFN Deal With Trump Administration: Report

• Novartis is already in discussions with the Trump administration, with the Switzerland-based company backing President Trump’s efforts to lower the prices of drugs in the country, according to the report.
• Roche, too, backed the Trump administration and stated that it is working with policymakers to craft “sustainable” solutions to protect innovation while protecting patient care.
• President Trump had also asked drugmakers to guarantee that they would not launch new drugs at prices higher than those in other high-income countries.

Several top drugmakers, including AbbVie Inc. (ABBV) and Merck & Co. Inc. (MRK), are reportedly expected to announce agreements with the Trump administration on Friday to lower prices of certain drugs in the U.S.

According to a Reuters report citing people familiar with the matter, Novartis AG (NVS), Roche Holdings AG (RHHBY), Gilead Sciences Inc. (GLD), Glaxosmithkline Plc. (GSK), Regeneron Pharmaceuticals Inc. (REGN), among others, is expected to announce deals.

This comes after President Donald Trump urged drugmakers in July to lower prices of their drugs for the U.S. government’s Medicaid program. The President had also asked drugmakers to guarantee that they would not launch new drugs at prices higher than those in other high-income countries.

AbbVie shares were down 0.2% in Friday’s pre-market trade, while Merck shares were down 0.1%. Retail sentiment on Stocktwits around ABBV was in the ‘bullish’ territory, while users felt ‘bearish’ about MRK. At the time of writing, Merck was among the top ten trending tickers on Stocktwits.

Which Companies Have Announced Deals?

So far, Pfizer Inc. (PFE), AstraZeneca Plc. (AZN), Novo Nordisk AS (NVO), Eli Lilly & Co. (LLY), and EMD Serono have announced Most-Favored Nation (MFN) deals with the Trump administration.

Novartis is already in discussions with the Trump administration, with the Switzerland-based company backing President Trump’s efforts to lower the prices of drugs in the country, according to the report. Roche, too, supported the Trump administration and stated that it is working with policymakers to craft “sustainable” solutions to protect innovation while protecting patient care.

Pfizer, Eli Lilly, Novo On Board Already

Pfizer, Eli Lilly, and Novo Nordisk are already on board, having announced a cut in prescription drug prices in the Medicaid program.

In October, President Trump announced that Pfizer would offer most-favored-nation pricing on all new drugs launched in the U.S. The company would also be a part of the White House’s new direct-to-consumer website, TrumpRx, scheduled to launch in 2026.

Eli Lilly and Novo Nordisk entered an agreement with the Trump administration in November, announcing price cuts for some of their upcoming pills and for existing obesity drugs. The two companies will also offer their pills on the TrumpRx portal.

ABBV stock is up 25% year-to-date, while MRK stock is up over 1%.

Also See: Waller's Odds For Fed Chair Nomination Surge After The Fed Governor's Dovish Comments On Rate Cuts

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