Pfizer agrees to reduce drug prices to delay tax imposition

VTV.vn - Pfizer has just reached an agreement with the US Government, accepting a sharp reduction in drug prices in exchange for postponing tax imposition for 3 years.

Pfizer pharmaceutical company headquarters in New York, USA. (Photo: AFP/TTXVN)

Under the deal, Pfizer will cut prices on many drugs by up to 85%, averaging 50%, and sell them directly to Americans through the TrumpRx platform. The company is committed to bringing drug prices in the US to levels comparable to other countries and launching new products at the same price.

The move addresses President Donald Trump’s long-standing complaint about the world’s highest health care costs. The news of the tax exemption helped Pfizer’s stock rise 5.6% on September 30. The US government also paused a national security investigation into imported pharmaceuticals while continuing dialogue with other pharmaceutical companies such as Eli Lilly.

Trump had previously said the US government would impose a 100% tariff on branded drugs starting October 1 unless companies built factories in the US. The latest comments from the president and his advisers suggest the warning was a negotiating tactic to force companies to lower their prices.

Mr. Trump announced that all the pharmaceutical companies will come to the negotiating table next week and the administration is working with them. He added that if they don’t reach a deal, they will be hit with an additional 5, 6, 7, or 8 percent tariff, which will be the difference in price, and the administration will recoup that.

Source: https://vtv.vn/pfizer-accepts-drug-discount-to-refund-tax-100251002055123396.htm