Administration announces a new set of drug pricing agreements

The Trump administration announced Aug. 31 agreements with nine additional pharmaceutical manufacturers aimed at lowering prescription drug prices through a most-favored-nation pricing model, which ties U.S. drug costs to the lowest prices paid by other developed countries. The White House said the new agreements bring the total number of participating manufacturers to 26, covering about 89% of the branded drug market, and will expand access to lower-cost medications through state Medicaid programs while generating savings for consumers. In addition, the nine additional manufacturers committed nearly $20 billion in U.S. manufacturing investments and will contribute key pharmaceutical ingredients to the U.S. Strategic Active Pharmaceutical Ingredients Reserve.