Trump Locks In Drug-Price Cuts With Roche, Novartis, Merck — More Big Pharma Deals Coming Next Week

• MFN pricing extended nationwide through Medicaid and to future new medicines.
• Steep direct-to-patient discounts rolled out via TrumpRx, including $35 insulin.
• Additional pharma companies, including Johnson & Johnson, are expected to ink similar deals next week.

U.S. President Donald Trump on Friday announced nine new agreements with pharmaceutical companies to lower prescription drug prices for Americans to the lowest levels paid in other developed nations, under what the administration calls a “most-favored-nation” (MFN) pricing framework.

With these additions, 14 of the 17 pharmaceutical companies targeted by the administration in August have now signed on.

Big Pharma Roster Expands

The companies named in Friday’s agreements are Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis and Sanofi.

Trump said additional companies, including Johnson & Johnson, are expected to announce similar agreements next week, as the administration continues to expand the program.

Medicaid Savings And Future Drug Pricing

The White House said the agreements apply to drugs used to treat an array of expensive, long-term conditions including type two diabetes, rheumatoid arthritis, multiple sclerosis, asthma, chronic obstructive pulmonary disease, hepatitis B and C, HIV and certain cancers.

The administration said every state Medicaid program in the U.S. will benefit from MFN prices on products from the nine companies, which it estimates will save billions of dollars. The agreements also require MFN pricing for all new innovative medicines these companies bring to market.

Trump also floated the idea of calling a meeting with insurance companies to discuss further ways to lower healthcare costs, suggesting insurers could significantly reduce prices or face alternative approaches that would direct savings to consumers.

Deep Discounts Via TrumpRx

The administration said the companies are required to offer medicines at steep discounts off list prices when selling directly to American patients through TrumpRx, a government-backed direct-to-patient drug purchasing platform.

The administration said patients would see steep price cuts, citing examples such as Amgen’s Repatha at $239 versus list price of $573, Bristol Myers Squibb’s Reyataz at $217 versus $1,449, and Sanofi’s Plavix at $16 versus $756, alongside similar reductions for drugs from Gilead, GSK, Merck and Novartis. The administration also said Sanofi will list its insulin products on TrumpRx at $35 for every month’s supply.

Drugmakers Pledge Domestic Investment

Trump said the participating companies have committed to invest at least $150 billion collectively in U.S. pharmaceutical manufacturing in the near term.

The administration also said several companies will donate active pharmaceutical ingredients to the Strategic Active Pharmaceutical Ingredients Reserve to strengthen emergency preparedness. GSK will contribute 98.8 kg of Albuterol, Bristol Myers Squibb will contribute tablets representing 6.5 tons of Apixaban, and Merck will contribute 3.5 tons of Ertapenem.

How Did Stocktwits React?

On Stocktwits, Health Care Select Sector SPDR Fund (XLV) showed 'bearish' retail sentiment amid 'high' message volume, while iShares Global Healthcare ETF (IXJ) saw 'bullish' sentiment with 'high' activity.

XLV and IXJ have risen 14% so far this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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