Merck (known as MSD outside the US) has announced an agreement with the US government to provide key products to patients at affordable prices.
Merck plans to establish a direct-to-patient programme that would offer certain medication to eligible patients at affordable prices, including Januvia, Janumet and Janumet XR.
Through the programme, Januvia, Janumet and Janumet XR will be available to eligible US patients at a cash price that is approximately 70% less than the current list price.
Upon FDA approval, the list will be expanded to include enlicitide, an oral drug candidate designed to lower LDL cholesterol.
The agreement means that US pharmaceutical tariffs on the company will be delayed for three years.
The announcement comes as part of Merck’s commitment to expand its innovation and manufacturing presence in the US. Merck currently has 15 manufacturing and R&D facilities employing over 30,000 people in the US. Since 2017, it has invested over $12bn in US manufacturing, and since 2018 it has invested $81bn in US R&D.
Over the coming years, Merck plans to invest over $70bn in US capital and R&D spending, including at least $12bn in capital expenditures. This includes the recently announced manufacturing facilities in Virginia, Kansas and Delaware, creating 1,200 full-time jobs and supporting 15,000 construction jobs.
Robert M Davis, chairman and CEO of Merck, said: “[This] agreement marks a pivotal step in ensuring Americans can access medicines they need at lower costs.
“For too long, global pricing imbalances have shifted the financial burden of groundbreaking research and development onto the US healthcare system and ultimately, American patients.”