Drug Companies Scramble to Join Trump's Pricing Plan

Pharmaceutical firms not included in President Trump's drug pricing agreements are now trying to negotiate their own deals.

This move is aimed at avoiding potential tariffs and new pricing regulations. Industry insiders reveal that these companies are reaching out to the White House and Medicare officials to secure their own agreements.

Uncertainty and Limbo

The Trump administration has not provided clear guidelines on how companies not initially contacted can proceed. This uncertainty has left many firms in a state of limbo. Companies are particularly worried about new Medicare pilot programs that could set drug prices based on international standards.

Deals and Concerns

So far, 16 major drugmakers, including Pfizer and Eli Lilly, have struck deals with the government. However, many other companies, including half of those represented by the largest pharmaceutical lobby group, PhRMA, have not been contacted. Stefan Oelrich, Global Head of Pharmaceuticals at Bayer, expects that these companies will eventually get the chance to negotiate similar deals.

Smaller companies are forming their own lobby groups to advocate against new pricing schemes. The Midsized Biotech Alliance of America, which includes companies like Alkermes and BioMarin, is one such group. Paul Hudson, CEO of Sanofi, points out that the nature of the existing deals might make it difficult for the government to offer similar options to smaller companies.

Price Disparities and Future Challenges

U.S. patients currently pay significantly more for prescription drugs compared to other developed nations. The deals signed by large drugmakers focus on lowering prices for drugs sold under the Medicaid program. However, companies without deals could face Medicare pilots that align U.S. prices with lower international prices.

Smaller drugmakers have concerns about being forced to slash prices due to deals made by larger companies. They worry that the agreements benefiting bigger firms might not work for them. The situation highlights the challenges faced by mid-sized companies in navigating the new drug pricing landscape.