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The Trump administration unveiled a deal enabling patients to purchase prescription medicines at reduced prices through a new federal website. In a Tuesday press conference, the White House said an agreement with Pfizer will cut prices on some drugs by up to 85% on the direct‑to‑consumer TrumpRx site. Pfizer also agreed to lower prices for its medicines under Medicaid, a move that will allow the company to avoid paying tariffs.
It comes after the US president announced last week a 100% levy on branded or patented drug imports from 1 October. Pfizer is the first pharmaceutical firm to settle a deal after Donald Trump sent letters to 17 drug companies in the summer, giving them 60 days to respond to his demands for lower prices - a deadline that expired this week.
During the press conference, Trump referred to a policy aimed at aligning prices in the US with lower ones abroad.
He said: "Pfizer is committing to offer all of their prescription medications to Medicaid, and it will be at the most-favoured nations prices. It's going to have a huge impact on bringing Medicaid costs down."
He said he expected more deals with drug makers to be announced.
In a statement on Tuesday, Pfizer said the majority of its primary care drugs would be available on TrumpRx, but did not disclose specific medicines. The company also said it would invest an additional $70bn (£52bn) in US manufacturing, research and development.
Pfizer's agreement is the latest example of concessions from pharmaceutical companies to avoid Trump's tariffs on branded drugs for three years.
Albert Bourla, Pfizer's chief executive, said: "We now have the certainty and stability we need on two critical fronts, tariffs and pricing."
Pfizer shares rose nearly 7% on Tuesday following the announcement.
Trump conceded that drug prices may rise abroad because of his actions aimed at lowering prices in the US.
