Trump Brokers $70B Pfizer Deal to Lower Drug Prices, Boost U.S. Production
U.S. President Donald Trump has brokered a significant deal with Pfizer, aiming to lower drug prices and stimulate domestic production. The agreement, worth $70 billion, is set to reshape the U.S. biopharmaceutical landscape.
Pfizer's commitment, the largest of its kind, builds on over $83 billion already invested in U.S. biotech innovation. The company will expand its research, development, and manufacturing operations, creating jobs and reinforcing the U.S.'s global leadership in the sector.
The deal includes a three-year exemption from certain tariffs, providing Pfizer with the stability needed to invest heavily in the U.S. market. In return, Pfizer has agreed to adjust its pricing policies, offering 'Most Favored Nation' pricing for Medicaid and discounts on primary care treatments and specialty medicines. A White House-backed platform, TrumpRx.gov, is expected to launch, enabling Americans to purchase certain medicines directly from manufacturers at reduced rates.
With this agreement, Pfizer pledges to 'return manufacturing home' and create thousands of jobs across 13 manufacturing and distribution sites and seven major research and development centers. The deal is expected to lower drug costs, boost domestic production, and strengthen the U.S.'s role as a global hub for biopharmaceutical innovation.
