AbbVie (ABBV.US) has recently signed an agreement with the U.S. government, pledging to reduce the prices of certain drugs and invest $100 billion domestically in the United States in exchange for eligibility for specific tariff exemptions. Recently, the Trump administration has frequently used the threat of high tariffs to pressure major pharmaceutical companies to expand their business operations in the U.S. Specific demands include providing low-cost drugs for the Medicaid program, selling affordable medicines directly to patients, and ensuring that drug prices overseas are not lower than those in the United States. In a statement released on Monday, AbbVie indicated that the signed agreement fully addresses all of these four requirements. In July of this year, Trump sent letters to 17 pharmaceutical companies, urging them to implement the relevant corrective measures. According to publicly available information, aside from Regeneron Pharmaceuticals (REGN.US), all other companies have now reached agreements with the government. Under the agreement, AbbVie will direct this $100 billion investment over the next ten years into domestic U.S. research and development and capital expenditure projects, which includes pharmaceutical manufacturing. However, the company has not yet responded to requests for comment regarding the specific details of how these funds will be allocated. The statement also noted that AbbVie will reduce drug pricing within the Medicaid program and will supply certain medications directly to patients through the "TrumpRx" official online platform launched by the Trump administration. In exchange for these commitments, AbbVie will receive tariff exemption eligibility and will be shielded from potential future mandatory drug pricing policies.
Comments