The President recently announced three agreements with Pfizer, AstraZeneca, and EMD Serono to reduce American drug prices dramatically. These prices are in line with the lowest prescription drug prices in other developed nations (known as the most-favored-nation, or MFN, price).

EMD Serono’s cost reductions for its fertility drugs will result in substantial savings on fertility treatments.

AstraZeneca Drugs

AstraZeneca medicines treat nine million American patients, and they will benefit from the successful negotiation to lower prices. The millions of Americans who suffer from asthma and chronic obstructive pulmonary disease (COPD) could benefit from these price reductions.

AstraZeneca Drug Cost Reductions:

• Bevespi Aerosphere, an inhaler used to treat chronic obstructive pulmonary disease (COPD), will be made available to patients purchasing directly at a significantly discounted price.
• Breztri Aerosphere, an inhaler used to treat COPD, will be made available to patients purchasing directly at a discount equal to 98% of the deal price.
• Airsupra, an inhaler used to treat asthma symptoms and attacks, will be made available to patients purchasing directly at a discount equal to 96% of the deal price.

Pfizer Drugs

Americans will realize tangible cost savings in the healthcare system as a whole. Taken together, more than 100 million patients are impacted by the diseases Pfizer’s medicines treat, and many of those will benefit from the President’s successful negotiation of lower prices for Americans.

Drug Cost Reductions:

• Eucrisa, a topical ointment for atopic dermatitis, will be made available at an 80% discount to patients purchasing directly.
• Xeljanz, a widely used oral medication for rheumatoid arthritis, psoriatic arthritis, and ulcerative colitis, will be available at a 40% discount to patients purchasing directly.
• Zavzpret, a commonly utilized treatment for migraines, will be sold directly to patients at a 50% discount.

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EMD Serono

This agreement is with one of the world’s leading manufacturers of fertility medications. Significant price reductions are now available for the following drugs:

Drug Cost Reductions:

• GONAL-F, a commonly used fertility medication, will be made available to women purchasing directly from TrumpRx.gov at a significant discount.
• Low- and middle-income women will receive an additional discount price when purchasing from TrumpRx.gov.

The Centers for Medicare and Medicaid Services estimates that women can save up to $2,200 per cycle of fertility drugs as a result of this deal on drugs that often cost over $5,000. Fertility drugs represent almost 20% of the total cost of a fertility treatment cycle.

The agreement also provides that EMD Serono will offer other medicines at a deep discount when selling directly to American patients, guarantee MFN prices on all new innovative drugs that come to market, and provide every State Medicaid program in the country access to MFN drug prices on EMD Serono products.

EMD Serono will invest in manufacturing in the United States, including manufacturing IVF drugs here for the first time, on the timelines agreed to in the deal.

Pricing Impact

The agreement will provide every State Medicaid program in the country access to MFN drug prices on these drugs, resulting in many millions of dollars in savings and strengthening the program for the most vulnerable.

The agreement requires all three companies to offer medicines at a deep discount off the list price when selling directly to American patients.

Additional Benefits

AstraZeneca announced that it will invest $50 billion in U.S. manufacturing and research and development by 2030. The company is building a new facility in Charlottesville, Virginia, which will produce advanced pharmaceutical ingredients to support its chronic disease and oncology pipelines.  The Virginia facility is projected to create 3,600 highly skilled jobs.

Final Note

It’s about time someone addressed the disparity between the cost of drugs overseas and in Canada compared to what we were paying in America! These bold actions are working and should result in reduced health care costs across the board, as the administration continues its push to reduce costs wherever possible.

More agreements are forthcoming, and overall, we should all realize significant savings on prescription drugs as these initiatives are launched.

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Dennis Damp

Dennis V. Damp is an author, retired federal manager, business owner, career counselor and veteran. Damp is the author of 28 books, a recognized benefits expert, and a retired federal manager with 35 years’ service. Dennis has been a guest on hundreds of radio talk shows, CNN’s YOUR MONEY and the Lou Dobbs Cable TV shows, lectured at universities and colleges, produced Internet web sites and training videos, and has written hundreds of articles for national magazines and newspapers. His books have been featured in the Wall Street Journal, Washington Post, New York Times and U.S. News & World Report.

Dennis joined the Air Force in 1968 and spent over three years on active duty and an additional seven years with the Air National Guard. He was hired by the Department of Defense (DOD) after leaving active duty and transferred to the Federal Aviation Administration (FAA) in 1975. He spent the remainder of his career in various positions with the FAA. His last position was technical operations manager at the Pittsburgh International Airport’s air traffic control tower.