WASHINGTON (dpa-AFX) - President Donald Trump has announced an MFN pricing deal with Regeneron to lower prescription drug prices that Americans pay for some of the world's most innovative drugs, in line with the lowest prices paid by other developed nations, known as the most-favored-nation, or MFN, price.
The agreement will provide every State Medicaid program in the country access to MFN drug prices on new Regeneron products, resulting in hundreds of millions in savings.
The agreement ensures that foreign nations can no longer use price controls to freeride on American innovation by guaranteeing MFN prices on all new innovative medicines Regeneron brings to market.
Regeneron will be required to repatriate increased foreign revenue on existing products that the drug maker realizes.
This marks the Trump administration's 17th agreement with a major pharmaceutical manufacturer, representing 86 percent of the U.S. branded drug market. Each of these manufacturers has agreed to fundamentally rebalance international drug pricing by providing MFN pricing to American patients.
The White House said that as a result of the deal, patients will see massive price reductions on products when purchasing medicines directly through TrumpRx.
Regeneron will reduce the price of its powerful cholesterol medicine, Praluent, from $537 to $225 for patients purchasing directly through TrumpRx.
Thursday, Trump also announced that Regeneron's new gene therapy for a rare type of genetic deafness, called Otarmeni, will be given to U.S. patients at no cost as part of this agreement.
Otarmeni was approved on an unprecedented timeline through the Food and Drug Administration Commissioner's National Priority Voucher Program.
Regeneron is also announcing that it will invest $27 billion in U.S. research, development, and manufacturing by 2029.
In this commitment, the company will onshore more than double its manufacturing capacity in the United States for the production of its biologic pharmaceutical medicines that are distributed in the United States.
This announcement brings U.S. pharmaceutical investments under President Trump to a total of $448 billion in just 15 months.
In May last year, Trump had signed an Executive Order directing the Administration to take actions to bring American drug prices in line with those paid by similar nations.
On July 31, Trump had sent letters to 17 of the leading pharmaceutical manufacturers outlining the steps they must take to bring down the prices of prescription drugs in the United States to match the lowest price offered in other developed nations.
Now, there are MFN deals with each of those leading pharmaceutical manufacturers, namely, Pfizer, Astra Zeneca, EMD Serono, Eli Lilly, Novo Nordisk, Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis, Sanofi, Johnson & Johnson, AbbVie, and Regeneron.
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