Pfizer’s Big Beautiful Deal: Cheaper Drugs, US jobs, Tariff Relief

Pfizer has signed a momentous agreement with the US Federal government. Here’s a snippet of what Pfizer gets and what we get (to be instituted in 2026):

Quick Outline

  • Pfizer will adhere to the most favored nation (MFN) pricing for all sales to Medicaid. So, Medicaid, usually the biggest customer to big pharma, will pay no more than what Pfizer charges other developed nations.
  • Pfizer will collaborate with The Federal Government in using the TrumpRx website for direct-to-consumer purchasing, at significant discounts.
  • Pfizer will get a 3-year relief on tariffs or a grace period if it moves some of its manufacturing jobs to the US.
  • Pfizer will invest $70 billion into research and capital projects like manufacturing, infrastructure in the US over the upcoming years.
  • Pfizer is offering significant discounts on the following as announced by The White House:
    • Eucrisa – ~80% off if purchased directly. (2023 sales of $250 million).
    • Xeljanz – ~40% off direct pricing (2023 sales of $1.7 billion)
    • Zavzpret – ~50% off direct pricing. (Approved in 2023 for migraine. Definitive annual sales not yet obtained)
  • Future Pfizer medications will adhere to the MFN rules of prices no more than those available in developed markets.
  • Repatriation of some foreign revenue to benefit US patients.

Leave a comment