Pfizer has finalised an agreement with the US government that will make a broad range of its medicines available in the US at discounted prices via a federal direct-purchasing platform. The agreement also serves to secure temporary relief for the company from forthcoming US tariffs.
While the full terms of the arrangement remain confidential, Pfizer confirmed that the move is a voluntary response to US President Donald Trump’s 31 July letter to pharma companies urging lower prices for US patients.
Under the agreement, Pfizer has committed to aligning US drug prices more closely with international markets and to ensuring price parity for newly launched products. Pfizer is the first big pharma company to reach a formal arrangement with the US government following the letter.
Medicines covered under the agreement will be listed on the government’s direct-to-consumer purchasing site, TrumpRx.gov. The majority of primary care treatments and certain specialty products are expected to be offered at an average 50% discount compared with current prices, while some reductions could be as high as 85%.
“By working closely with the Administration, we are lowering costs for patients and enabling greater investment in the US biopharmaceutical ecosystem by ending the days when American families alone carried the global burden of paying for innovation,” said Albert Bourla, chairman and CEO of Pfizer.
The deal also grants Pfizer a three-year grace period from a planned 100% tariff on branded or patented imported medicines, due to take effect on 1 October 2025.
“We now have the certainty and stability we need on two critical fronts, tariffs and pricing, that have suppressed the industry’s valuations to historic lows,” added Bourla.
The company has also pledged an additional $70bn investment in US-based R&D and manufacturing over the next few years, adding to more than $83bn already invested by Pfizer since 2018.